Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-08
Everybody's
Business
Hoover's Profossd Meas
ures, Although Year Late.
Adofted IN Time to Beng
ft United States and Rest
of World.


phere prevailing In the realm of bust
ness and finance seems to have assumed
a somewhat more encouraging aspect.
While it is true that many of the din
culties confronting the United States
might have been avoided had the meas
ures which President Hoover has just
proposed been adopted year ago, new
! ertheless considerable announcement is
derived from the fact that they are
| being taken in time to be still OF genu-
| inc assistance, not alone to the United
States but to the rest OF the world as
WELL
The Presidents manifesto embodies a
| definite program of action, and 1t Is in
this respect that 1t differs from most
of the previous suggestions which have
emanated from the White House.
Bank Failures Problem.
AS has been pointed out on numerous
occasions, the principal difficulty with
which the United States was, and to q
certain extent still is, confronted is the
| continuance Of bank failures and the
resultant fear that conditions would
| grow worse before drastic steps would
be taken to improve them. President
Hoover advocates. therefore, above all,
the formation of a national institution
with resources of $500, 000,0 900, whose
a chief function will be the rediScounting
a { banking assets which are not eligible
a present for rediScount at the Federal
IRA serve banks.
I'm this way the financial institutions
thr 1ughout the country will be assured
thas they may attain liquidity in case
of ne ceSsity, and will be enabled to con-
tinue-, their business without the restric-
ton a their credit or the sacrifice Of
their a ssets.
ConsS derable aid is also expected
from TIN? proposed recommendations to
CongresS to permit the broadening of
the FedtA'al Reserve act pertaining to
the eligibN ity provisions. Such changes
should resN ut in a great liquidity for
bank assets and a greater assurance to
the bankers in the granting of credits
by making Il possible for them to OBJ
tain legitinA tie accommodations on
sound securitte in times Of stress.
Intergo,S 'rnmental Debts.
Once the United States has taken
steps to put its tNvn house in order. the
solution of the IN oblems of the world.
of which America Is now an integral
part. could be undertaken with the
hope Of achieving "a least a fair meas
ure of success.
The Presidents message contains a
reference to the foIst booming visit to
the United States of \ 'remler Laval OF
France, with whom WIZ ihington expects
to take up the question arelative to such
further changes in the q atus OF inter-
governmental debts as m ay seem i'm
perative during the periA of depres-
sion. An extension of Ahe one-year
moratorium, proposed in Jn ne, Is con-
fdently anticipated.
Those who Sell Benefit.
normal conditions affords little, If any,
dependable guidance as regards .'ay-to-
day November quotations. In fact, it
sometimes seems then as If a sta ok is
bound to 60 down whenever all fal tors
appertaining thereto point to rise. 1t
will be recalled that two years ago tn use
who bought stocks indiscriminat. ly
were the ones who profited most. TT
required skill to select stocks which din |
not advance. Today those who sen
unfortunately are the chief bene-4
flciaries, and it requires genius to select
an issue which does not decline, an
alySes to the contrary NOTWITHSTANDING.
These are not sufficient to offset de-
pressions. One is reminded of an old
ditty:
Here lies the body of Hiram Gray,
Who was killed while maintaining his
right of way.
He was right. dead right, as he sped
along.
But he's just as dead as if he had been
wrong"
No one rang the bell in the Fall of
1929 announcing the collapse of the
boom: no one will ring the bell an
rouncing the end of the downward
trend. 1t is bound to come, and will
in all probability come when least ex-
pected. 1t may have come already.
Guarantees Employment.
Gerard Swope, president of the Gen.
eral Electric Co., is not concerned over
the future of the electrical industry He
is firmly Of the belief that the electrical
needs of 125,000000 people in the
United States. especially with the in
creasing demand in the home, will keep
the industry alive.
MIR. Swope adds that If General Elec-
trio Is to be in position to secure a
fair share of the available business. II
is essential that the company's workers
maintain the quality of its products;
that the engineers continue to make
progress In the design of apparatus, and
that the management supervise eff
GENTLY.
With these points in view. the COM
pany has just given to all shop workers
a virtual guaranty of six months en-
ployment, beginning the first of next
month.
Juicy Power Contract.
Considerable benefits are expected to
be derived by the Consolidated Gas,
Electric Light & Power Co. of Balti-
more as result of a contract from the
Pennsylvania Railroad to supply all the
power required for use from the Sus-
quehanna River to Havre de Grace, Md
The contract is one of the most sub
stantial of the kind ever made at one
time. and will run for 20 years. It
should be reflected in the quotation of
the shares of Consolidated, which are
selling currently at about 60 per cent
of the high for the current year, re-
turning on the basis of the present divi-
dend rate substantially in excess Of 512
per cent. Considering the quality of
the shares. this yield may be regarded
as reasonably liberal.
(Copyright. 1881, by the North American
Newspaper Alliance, Inc)