Evening star., 1931-12-18
PARLEY. SPEEDS UP .
TRADE: AID PLANS
Hoover and Leaders of Both
Parties in House Confer
at White House
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Continued From First Page)
"a nice breakfast" but would add moth
ing else.
Garner was jovial as he climbed into
a new White House car to be carried
to Capitol Hill. He came to the White
House afoot from his hotel, having re-
nounced his right to the Speakers car.
Hello boys" he said I don't see
you often, You are up here with all
these rich men"
Rail Stu, ,tion Mentioned.
At a press conference called by Mr..
Newton, he said in answer to questions
that the railroad situation, known to
bulk large in Mr. Hoover's mind, had
been touched on only in its broader
aspects"
The railroad situation was not par
ticularly emphasized except as phase
of the reconstruction program. The
President hopes the carriers will benefit
through the proposed reconstruction
corporation.
1t was understood at the White House
that there had been mention, tut no
lengthy discussion, of the amendment
added to the moratorium measure yes
terday, barring any cancellation of re-
duction of debts
NOI IOIlS dItST TIE DTedkldSU con-
ference ended Banking Committees of
both Senate and House summoned
witnesses to give expert advice on the
Presidents proposal for creating a ma
tional reconstruction corporation, de-
signed as credit cushion upon which
the business Of the country should ride
forward to better times. The commit
tee work was a prompt and definite
reaction to Mr.. Hoovers demands upon
his party leaders.
SteagaIl Calls Committee.
So this morning, with Senate bill
No l on the table. Chairman Norbeck
of the Banking Committee called for
light on the workings of the $780,
100000 credit corporation set up in the
Fall by bankers on the Presidents
advice. The degree of its success is
to be taken as a guide on the new
plan. M. N Buckner, executive head of
the unit, was the witness called. Un-
dersecretary Mills also was expected.
Democratic committee chairman,
Steagal of Alabarss. who has intro
duced a companion bill in the House,
also called his committee together,
asked Mills to testify together with
Eugene Meyer, governor of the Federal
Reserve Board. who was an official OF
the War Finance Corporation after
which the present financial structure Is
patterned.
In his testimony Meyer put in good
word for the bill to create the half
billion-d dollar corporation. Speaking eX-
temporaneously, he said lack of con-
f1dence and fear" were largely respon-
sible for the tight credit situation and
the existing economic conditions.
L believe a bill of this kind would
restore confidence in many areas, and
that alone would be commendable, ne
said. L do not want to predict, how
ever as to price levels"
In emergency the Government can
afford Ito depart from its ordinary rules
and principles he said.
Real Estate Troubles Analysed.
Turning to the growth of the real
estate business in this country, Meyer
said the development was carried on too
long and the financial arrangements
became dangerous with dangerous
valuations"
Through the Reconstruction Finance
Corporation. Meyer said. the weak
could be sustained and the strong would
be better able to go along"
With capital of 100000 900 fur-
nished by the Government, he said, the
corporation would be authorized to
issue bonds not exceeding 81, 500 900 600.
Directors would be the Treasury Sec
retary. governor Of the Reserve Board,
the farm loan commissioner and two
presidential appointees, each to serve
five years and be approved by the
Senate.
The corporation would be authorized
to make loans on terms and conditions
1t may determine to any bank, banker,
savings bank, trust company, clearing
house. building and loan association and
insurance and other financial institu-
tons
Loans also may be made to railroads
for temporary financing. The Treasury
would be finally responsible for all debts
OF the corporation