Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-07
BANKERS ENDORSE
HALF-B|LL|0N POOL
American Association Says
Plan Should Remove Credit
Restrictions.
By the Associated Press.

by the Associated Press
ATLANTIC CITY, N. j., October 7.
The American Bankers Association
today voted approval of President
Eoover's plan for a $500 900, 900 bank
ers' pool to mobilize the Nations frozen
credit.
Amid scenes of wild enthusiasm the
convention approved President Hoovers
proclamation in its entirety. and after
ward adopted the following SPECIFIC
praise of essential points.
we heartily approve the plan of the
President of the United States. under
which a 00o000 900 bank pool is being
created for the purpose of meeting the
discount demands of bankers who find
it advisable in supplying the needs OF
the public to obtain funds from COL
lateral of a character, which though
sound. is not eligible for rediscount
directly or indirectly with the Federal
Reserve banks
The operation Of this pool. which
should be available for use by all sound
banks. both State and national should
Immediately remove the restriction upon
credit throughout the United States
that has been the cause of so much
anxiety to bankers and the public, and
should serve to re-establish confidence
throughout the length and breadth OF
this country"
It's attention somewhat diverted by
Washington dispatches of conversations
between bankers and President Hoover
the association convention turned to-
day to agriculture and world commerce.
Bankers here profesSed to have no
information about the Washington con-
ferences.
In view of depressed world credit
conditions. considerable emphasis was
laid on the coming report of the Com
merce Committee. which is expected to
discuss interna tional finance.
Agricultural interests centered on the
address of James G. Stone, chairman
of the Federal Farm Board. The topic
of his speech was not announced.
Warns Against Short Selling.
Yesterday the Economic Policy Com
mission of the association sounded the
keynote of the convention with an ag-
gressive defense of banking during the
depre5 sion. pointing out that but
small percentage of deposits had been
affected by failures and suspensions.
The report CT the Economic Policy
Commission also warned that unwar-
ranted short selling may crystalline into
agitation for undesirable restrictive
legislation. The report did not con-
denim short selling as such. attacking
rather its use to depress quoted values
unduly.
Richard H. Grant, vice president of
General Motors corporation, forecast
the first half of 1882 as a more sue
cessful automotive period than the first
half OF this year. Grant cited an al
most certain greater replacement mar
ket, and reviewed automotive experience
to show that every third year is a big
motor year.
Expects Better Business.
"If we had a normal economic condi-
ton we could be sure that as 1882 is
three years after 1929 we would do a
tremendous business Now there are
factors at work that make 1t uncertain
how big the year will be.
But am willing to make this state
ment, that as far as the conduct of our
business goes in the first half of 1882,
we have to draw the conclusion from
the figures in the best sense we can use
up to Gate. that we will have to set the
indices for the first half of 1882 some
what higher than the actuaiities of
1881"
The report regarding short selling
further urged bankers to withhold
liquidation of securities in so far as
possible, to refrain from forcing bor-
rowerS to pay and for banks mutually
Hass Named President.
Harry j. HasS. vice president and di-
rector of the Philadelphia First National
Bank, was elected president of the as
ISOLATION today
Los Angeles was chosen for the 1882
convention.