The Washington times., 1931-10-07
S60,000,0O0
\ LAND LOAN
ALSOH|T
Democratic Senators Protest
Present Policies of Banks
In ForeCIosing Mortgages
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dent said, to offset the wholly
unjustifiabIe withdrawal OF cur.
rency from some banks" and to
maintain the liquidation Of all
banks in case Of necessity.
2. An appeal to local bankers
60 make some advances on the
security of the assets Of closed
banks in their communities or
to take over some Of these as
sets in order that partial divi-
dends may be paid to depOSitors
In advance of the legal hquida-
ton.
3. Appropriation Of $6O,OOO.-
600 by Congress to strengthen
the resources Of Federal and
banks in order to furnish ad-
ditiOnal credits to farmers.
4. Amendment Of the Federal
reserve act to liberalize its re
discount provisions.
s. Creation, IL necessary, OF
q finance corporation similar
In character and purpose to
the War Finance Corporation"
with available funds sufficient
for any legitimate can in SUP
port of credit.
6, AnnOuncS n cSement by the
President that he would pro-
pose to Premier Laval Of France
nm extension of the war debt
moratorium when they meet
late this month.
Confidence Is Asked
The President also appealed to
the American people to set an
example to the rest Of the world
by exhibiting a confidence in the
integrity of the country. In his
formal statement, he expressed
considerable agitation over the
withdrawal of currency from
banks.
The President said:
"The times call for unity OF
action on the part Of our peO-
pie. We have met with great
difficulties not Of our own
making. It requires determine
ton to overcome these difficult
ties and above all to restore
and maintain confidence. Our
people owe it not only to them
selves and i'm their own inter.
est, but they can by such an
example of stability and pur-
pose give hope and confidence
in our own country and to the
rest Of the world
All the suggestions for restora
ton of prosperity came from the
President. His audience Of con
gressional leaders merely dis
cussed the proposals.
There was no discussion OF
disarmament, reparations, current
suggestions for limiting Short-Sell
ing on the stock market, or a
special session of Congress.
Moratorium Hits Snag
The conference, however, forced
Mr.. Hoover to change one item
on his program-that relating to
extension of the war debt mora
torium. After the President
read his original suggestion,
which some Congressional leaders
interpreted as binding the con
ference to endorsement Of an ex'
tension Of the moratorium, he
agreed to rewrite the provision
before making it public.
There was considerable debate
ON the moratorium and It was
plainly indicated to the President
that some Democratic leaders
and a few Republicans would Op
pose q further extension at this
time. Even Senator SVatSOn, Ad
miniStratiOn leader Of the Senate
declared 1--WE cannot make . de
CisiOn on that at this time"
The suggestion to appropriate
additional capital for the Federal
land banks also drew fire. A
number Of Democratic Senators
including Robinson, minority
leader Of the Senate, and Harri
son, party spokesman, protested
against the present conduct Of
land banks in foreclosing farm
mortgages.
The Presidents suggestions or
strengthening the banking Struc
ture of the nation were giver
hearty Endorsement. For ont
thing, these suggestions do not re
Quire Congressional action, except
for revision of the Federal reserve
act
There was real enthusiasm ovel
his proposal for a $500, ,000, ,00(
banking institution, to be financed
by banks, as a sort Of stabilizatior
corporation for the banking in
terests.
$15O,OOO.OOO Pledged
The President announced that
the New York city Clearing House
Association already has pIedgeC
$3.50, 100000 toward creation o.
such an institution. He said h
had received assurances Of sup
port from bankers in other larg'
cities.
The proposal for broadening tn
law covering rediscounting o
credits by the Federal reserve sys
tenn drew approval, too, although
there was no unanimity Of opir
ion over the details.
The attitude Of congreSsiona
leaders was revealed by two or
posing party spokeSmen.
Senator Watson said:
"Every man attending the
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