Evening star., 1931-12-04
HOOVER PREPARES
HUGE CREDIT PLAN
ON WARTIME LINES
Organization Similar to
Finance Corporation May
Be Urged in Message.
WOULD BE SUPPLEMENT
TO GREAT BANKING POOL
Congress May Be Asked to Name
Head of System-Jordan
Holds Boom Near.
By the Associated Press.

BY the Associated Press
Ine formula for giant credit cor
poration designed along the lines of
the War Finance Corporation has been
worked out by President Hoover and
Will be submitted to Congress.
The new organization will be planned
To supplement the work now being done
through the banking pool organized
after President Hoover's meeting with
congressional leaders October 6.
The President hopes to have all de-
tails worked out in time to include
them in his message to Congress Tues
| day.
No one has yet been selected as q
possible head of the new corporation.
| and there is a strong possibility Con-
gress may be asked to make that selec-
| tion.
Pool Held Effective.
The President was said today to feel
the banking pool has given extremely
enectlVe service, restoring confidence in
banks and enabling the banks them
serves to remain liquid
us scope, however, has not been as
ofoad as the credit situation demands.
Ihe President has conferred within
recent weeks with a number of men
associated with the old War Finance
corporation, including Bernard Baruch.
VINO was mead of the War Industries
Boaro, ana today he talked with Julius
barnes, who was the head of the
Gram Sterilization Corporation during
| the war. @
High among other proposals before
tne president are aid for railroads,
potn major and short line; fresh aid
Ior small business and assistance for
the farmer
Barnes Visits President.
Julius Barnes, chairman OF the board
OF the United States Chamber of Com
merce, was the first presidential visitor
| this morning
Numerous Senators and Representa-
lives nave oeen at work on plans to
neip industry and the railroads and
scores OF such have reached the White
House from all over the country. Each
plan Is gone over.
meanwhile, a Senate committee
contlnues hearings on whether a ma
uonai economic council would be feas-
iDie. Ioday 1t received testimony bv
virgil Jordan, New York economist.
tnat next year is bound to bring an
upswing
Shaw is Dinner Guest.
A; w. Shaw, chairman of the Presi-
gents Committee on Recent Economic
Cnanges, mas been a not infreuuent
visitor and last night was a guest at
| the Presidents dinner to his cabinet.
In MS appearance before the Senate
Manufacturers Subcommittee today.
ooroan predicted the beginning of an
oGner period OF imitation early next wear.
me new York economist said the next
and would swing under way QUICKLY
AT this moment" he said. materials
are at hand for large scale, almost un-
pIecedented infationary expansion.
with nothing to stop it," He cited:
! l. Inc position OF the banking sys-
tenn, with an enormous supply of gold.
2. Large volume of boarded currency.
Wnich he estimated at $500, 900. 600.
8. Low borrowings of banks belong
Ing to the Federal Reserve system,
Wen rave more boonls on the grand
scale OF the last one" he said.
Lewis Plea Heard.
| The Senate subcommittee later heard
| the economic council idea approved by
| John L. Lewis, president of the United
| Maine Workers He called for congress
sional action ito pave the way for re-
| employment of millions"
he said an economic council, properly
organized, could be of "inestimable
| value"
Lewis added the bituminous coal min
ing industry was "notcriously oyerde-
Veloped and unstable"
To bring back order and provide bet
ter incomes for 2,500,o00 who he said
were barely existing. he urged adoption
OF a bill sponsored by his union. This
Dill, ne said, called for:
Licensing and regulating coal corpo-
rations and firms engaged in interstate
commerce;
Mergers and consultations, enaour-
aging selling pools and marketing
, agencies, all to be under regulation cf
the Federal Coal Commission; and
Stabilization of the coal industry.
Lewis said the measure would pro-
hibit gluts of the coal market: remove
the conditions that foment cut-throat
competition; stop wanton depletion of
coal resources, and revamp the btu
minous coal industry on American
business standards