Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-08
POOL |S>EXPECTED
WITHIN As HOURS
Banks of Whole Country
to Be Invits d to Share
Er in institution.
fContinued From First Page.)

Continued From First Page)
members who attended the conference
publtpaH SPOKE the Endorsement they had
givetfthe Presidents plan. scattered de-
mandSdhat Congress be called into Spe-
cial session TO cope with the situation
were heard. Indications were. however.
that President Hoover would await the
regular session to present his program
Meanwhile he turned to r-al, estEte
men, builders and b>nEe.S to make pcs
sible u speeding up OF home conStruc-
ton and consequent employment IN the
building trades:
At a conference yesterday which he
did not consider related to current
emergency problems the Chief EXecu-
tive discussed with 10 representatives Of
these groups plans to make II easier and
less expensive for the future home build
ers to obtain credit. They were MEM
bers- of the Finance Committee Of the
coming White House conference on
home building and home ownership
which meets here December , to 5.
Securities First Problem.
Opposed BY representatives OF the
building and loan associations, Harry
8. Kissell, Of Springfield, Ohio preSi-
dent of the National Association of Real
Estate Boards, presented proposal for
a central mortgage rediscount. be nix
The associations, however, were said 10
have plans for some form of central
bank designed to expand credit.
Foremost under the administrations
proposals receiving legislative consid-
Grafton is that TO broaden the base OF
securities which the Federal Reserve
System may accept for rediscounting
In many Gases gilt-edged securities
held by banks have not been eligible for
rediscount under the Federal Reserve
restrictions, thereby tying up the insti-
tution's assets.
A further plan to release banking
funds will be presented to Congress by
John w. Pole, controller OF the cur
rency, In his annual report.
He conteriplates amending the Ma
tional banking laws SO that banks in
any community, through cooperation
with the receiver of a suspended bank
could make money available for the de-
positors. This. he believes would
speed up liquidation, with consequent
relief to depositors.
Little Opposition Expected.
Already holding the approval OF
many congressional committeeman be-
fore whom it will come the Chief EN-
ecutive will lay his suggestion that Con-
gress subscribe $50 600 900 in additional
capital stock for the Federal Land
Banks to expand rural credit facilities
With the support of the National
Grange and the American Farm Bureau
Federation, little opposition to it is
expected.
HARRISON ISSUES STATEMENT.
Governor Of Federal Reserve At New
York Tells Of Plans for Pool.
Special Dispa tch to The Star.
NEW YORK. October 8.-The initia-
tive toward giving the new national
discount and credit organization, which
is yet unnamed. quick start toward
realization was taken in New York BY
George L. Harrison, governor Of the
Federal Reserve Bank of New York
Mr.. Harrison issued the following state
ment relative to the preliminary steps
being taken to bring the organization
into existence:
President Hoover has requested ths
bankers of the Nation to form a nation
al institution of at least S500,000, 600
for the purpose Of rediScounting for
banks. when necessary, sound assets
not now legally eligible for rediscount
at the Federal Reserve banks. He also
has requested the bankers of New York
to assume the leadership in the forma-
ton of such a corporation.
Members of Committee.
In order to proceed as promptly as
possible with its organization l have
asked Mr.. Mortimer N. Buckner preSi-
dent Of the New York Clearing House
Association, to act as chairman of an
rganiZation Committee TO be COM
posed OF himself and five members Of
the New York Clearing House COM
mittee: Mr.. Charles s. Mccain. Mr..
Harry E. Ward, Mr.. George w. Dawson,
Afr. Herbert P. Howell and Mr.. Gordon
8. Pentscnle-. They have agreed to
serve on such committee.
Prog ess has already been made to-
ward the immediate organization of the
corpora ton and the development OF the
procedure by which il may promptly
and effectively operate in various sec
lions o. the country. 1t rs contem-
pla-ed that there viii be a board of
directors OF y members. l from each
FEDERAL Reserve district, to be selected
BY the Organization Committee
All Banks to Participate.
AL banks throughout the country
will shortly be asked to participate in
this undertaking by subscribing to the
FAt1i-S VI = pSA -CtIit fOI THEIR net Oc-
mand and time. deposits The men,
bers OF the New York Clearing House
ASsocia ton have evidenced their unani-
nous support by agreeing to participate
10 the extent of $50 900 600
While the Organization Committee
will issue the appropriate notices re-
garding the procedure for filing sub
scriptions, nevertheless any bank de-
string 20 participate may immediately
advise the governor of the Federal Re
serve Bank CT its district of the amount
OF its subscription This procedure will
afford an immediate means by which
all other banks may evidence their CO.
operation pending the preparation of
formal subscription blanks. which will
be in the nature of an agreement TO pur-
chase oobentures of the proposed cor
porat as and when funds are re-
quire The Organization Committee
itself y from time to TIM make ap-
propriate announcements of the progress