The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-07
EXPERTS LAUD
BANKING PLAN
AS Wise STEP
Hoover Proposal Wins
Favor of Authorities All
Over World.
MORGAN KEEPS SILENT
International Bankers at
Paris Want Extension of
Debt Holiday.
BIZ Times Special

oJ ttHtto SptCtut
WASHINGTON, Oct. 7.-Appro-
val of President Herbert Hoover'S
sterilization plans came from many
quarters today, while the White
House was announcing that the sec
ond move in the program would
come later today when the Presi-
dent meets with ten bankers and
real estate men to discuss home
building finance.
The list of confereeS was:
William E. Best, Pittsburgh; Hi-
ram S. Cody, Chicago; Harry A.
Kahler, New York; Harry S. Kis-
sell, Springfield, o.; Samuel N. Reep,
Minneapolis; w. Q. Stewart, New
York; Ernest P. Trigg, Philadel-
delpnia; Clarence M Wooley, New
York; James L. Madden, New
York, and Robert P. Lamont, Secre-
tary of commerce.
From Paris came the pleased
comment of the French press, en-
Unused because Mr.. Hoover had de-
cided to await the arrival of Pre-
mier Pierre Laval in Washington
before discussing prolongation of the
one-year debt moratorium.
Bankers Are Lukewarm
Then, too, from Paris was the re-
port that J. P. Morgan and his
partners, Thomas Cochran and Nell
son Jay, studied at length today
an outline of the Hoover plan. Nor
gan declined to make a statement,
but other international bankers in
Paris we're understood to be luke
warm toward the proposal, express
ing themselves as being more inter-
eSted in IAN extension of the debt
moratorium than in bolstering
banks suffering from unwiSe finance
ing"
In London, Charles G. Dawes,
United States ambassador to Great
Britain and an outstanding eco
nomic expert in his own right,
hailed the Hoover plan as the
foundation for improved business
activity"
One of Britain's outstanding
economists, who preferred to remain
anonymous, Endorsed the plan fully
and declared the action was on
entirely wise lines"
The London Stock Exchange was
stirred by the news and prices in
many sections of the list advanced
moderately.
Germans Are Pleased
From Berlin came the pleased
statements of German bankers who
said that lin extraordinary times
extraordinary steps must be taken"
In the United States itself, the
most important reaction came when
the American Bankers Association.
meeting at Atlantic City, officially
approved Mr.. Hoover's proposal for
the $500, 900 bank pool to relieve
frozen assets.
In Wall Street enthusiasm was
mounting hourly. Even before the
Street had concrete news of the
plan Tuesday, the market took a.
sensational upward squirt eclipsing
any advance since the close Of 1929.
Today, the market opened l to S
points up and held steady through
out most of the morning. Bankers
were optimistic and lauded the pro-
posals Fundamentally.
Explain Frozen Assets"
Meanwhile, at Washington. the
department of commerce gave out
a statement explaining frozen as
sets" Examples, listed by the de-
partment, were:
l. Notes secured by mortgage on
real estate.
2. Notes secured by collateral such
as stock certificates.
3. Bonds of corporations or for.
e1gn governments.
4. Stocks not listed on stock ex-
changes.
The department stressed the fart
That these holdings in normal times
are sound, but in times of financial
stress can not be converted into
cash Immediately. The department
listed frozen assets" as "assets
other than cash which become tenn
porary valueless' because there is no
market for the securities behind
them