Evening star., 1931-12-22
HOOVER HOPEFUL
FOR RELIEF BILLS.
Says Congressional Leaders
Have Given Him Assurance
of Passage After Recess.

By the Associated Press
Assurances by congressional leaders
have made President Hoover confident
that his urgent recommendation for a
$500 ,OOo,o00 Reconstruction Corporation
will be made law after the holidays.
He said as much today in announcing
that his efforts for shortened holiday
recess had not been successful. He
added that after the customary recess
he had been told there would be amply
sufficient cohesion of view" to assure
passage of corporation bill.
Leaders Promise Action.
The text Of President Hoover's re-
marks follow:
Leaders of both houses have as
sured me that Congress will devote
itself to the economic emergency pro-
gram which I have proposed for the
ameiloration Of agriculture, unemploy-
ment and credit situations
L had urged that the proposed con-
gressional holidays should be shortened
out leaders have informed me they do
not believe 1t possible to secure a
quorum before January 4.
They assure me. however that the
measures which are uncompleted be-
fore the holidays will receive immediate
attention after reconvening. and 1 am
assured that the Reconstruction FL
nance Corporation will be the first to
receive consideration and that it has
sufhcient support to be passed by Con-
gress."
WouId Aid Ranks
Meanwhile Melvin A. Traylor, presi-
dent OF the First National Bank of
Chicago, was telling a Senate Commit
tee the greatest step that could be
taken toward prosperity would be the
aid Of the Government in "unfreezins"
the assets Of closed banks
He said he did not believe the recon-
struction corporation made any pro-
vision for this.
III the assets In the closed banks
were made available" Traylor said, "it
would stimulate public confidence great
~ and it Is altogether possible it would
add a billion dollars to the amount OF
currency in this country in a very
short time"
He estimated these frozen assets at
$4,000, 100000, with another three
quarters of billion tied up through
hoarding resulting from the psyche
logical effect of the failure Of banks.
Senator Glass, Democrat, Virginia,
agreed with Traylor that the bill does
not permit loans to closed banks He
SAID 1t calls for loans to banks. but that
a bank ceases to be bank" when 1t
ceases to function.
-, The slender. outspoken Traylor said
II you restrict the operation of this
corporation to collateral that is reason
ably liquid you are not going to reach
the situation that needs help"
Iraylor proposed that a closed bank
With assets of $1,000 900, for example,
should pledge the entire amount to the
proposed corporation as security and
receive $250,000 loan, which would
permit paying depositors Immediately
20 cents on the dollar.
The failure of these frozen assets to
geC back into circulation he said, is as
Dig handicap to the return OF pros
perlty as IS unemployment"
Bank Management Defended.
The failure of banks In many parts
OF the country, Traylor said, did not
result from any mismanagement on the
part Of bankers.
Senator Glass asked him how then
ne accounted for the fact that large
quantities of worthless foreign se-
curities" were accepted.
The banker replied that the amount
OF these securities held in the coun-
trys banks was not large and that the
Investments looked all right at the TIME.
sTbere "a no more reaaoo "a saRs1oe