The Bismarck tribune., 1931-12-08

absolutely assured and that the gov
ernment may be in position to meet
any public necessity, recommend
that an emergency reconstruction
corporation of the nature OF the for
mer war finance corporation should
be established. It may not be neces-
sary to use such an instrumentality
very extensively. The very existence
Of such a bulwark will strengthen
confidence. The treasury should be
authorized to subscribe a reasonable
capital to it, and 1t should be given
authority to issue its own deben-
lures. It should be placed in liqui-
dation at the end of two years. It's
purpose is that by strengthening the
weak spots to thus liberate the full
strength of the nations resources. It
should be in position to facilitate ex-
ports by American agencies; make
advances to agricultural credit agen-
cies where necessary to protect and
aid the agricultural industry; to make
temporary advances upon proper Sc
curities to establish industries, rail-
ways, and financial institutions
which can not otherwise secure
credit, and where such advances will
protect the credit structure and stim-
ulate employment. It's functions
would not overlap those OF the ma
tional credit corporation.
FEDERAL RESERVE ELIGIBILITY
On Oct. 6, I issued statement that
I should recommend to the congress
an extension during emergencies Of
the eligibility provisions In the fed
eral reserve act. This statement was
approved by representative gather
ing of the members of both houses
Of the congress, including members
Of the appropriate committees. 1t
was approved by the officials Of the
treasury department, and I under
stand such an extension has been ap-
proved by a majority Of the gover-
nors of the federal reserve banks.
Nothing should be done which would
lower the safeguards of the system.
The establishment of the mortgage
discount banks herein referred to
will also contribute to further reserve
strength In the banks without in
flation.
BANKING LAWS
Our people have a right to bank
ing system in which their deposits
shall be safeguarded and the flow OF
credit less subject to storms. The
need of a Sounder system Is plainly
shown by the extent of bank failures.
I recommend the prompt improve
ment of the banking laws. Changed
financial conditions and commercial
practices must be met. The congress
should investigate the need for sep
aration between different kinds OF
banking; an enlargement of branch
banking under proper restriction; I;
and the methods by which enlarged
membership in the federal reserve
system may be brought about.
POSTAL SAVINGS BANK.
The postal deposits have increased
from about 2O0,OO0,0O0 to about
$3.50, 100000 during the. past year
This experience has raised important
practical questions In relations to de-
positS and investments which should
receive the attention of congress.
RAILWAYS
The railways present one Of Oul
immediate and pressing problems
They are and must remain the back
bone of our transportation system
Their prosperity is interrelated with
the prosperity of all industries. Theil
fundamental service in transporta'
ton, the volume of their employment
their buying power for supplies from
other industries, the enormous In
vestment in their securities, particu'
larly their bonds, by insurance COM
panies, saving banks, benevolent anc
other trusts, all reflect their partner.
ship in the whole economic fabric
Through these institutions the rail
way bonds are in a large sense the
investment Of every family. The vel
maintained and successful operation
and the stability of railway finances
are of primary importance to eco
nomic recovery. They should havt
more effective opportunity to reduct
operating costs by proper consolida
ton. AS their rates must be regu
lated in public interest. so also ap'
proximate regulation should be ap
piled to competing services by som'
authority. The methods of their reg
ulation should be revised. The inter
state commerce commission has made
important and far-reaching recon-
mendations upon the whole subject
which commend to the early con
sideration of the congress.
ANTITRUST LAWS
In my message of year ago
commented on the necessity of con
gressional inquiry into the economi'
action of the antitrust laws. Their
is wide conviction that some chang
should be made especially in TIN
procedure under these laws. I do no
favor their repeal. Such actor
would open wide the doors to price
fixing and monopoly, and destructio,
of healthy competition. Particula
attention should be given to the in
dustries founded upon natural re
sources, especially where DESTRUCTIVE
competition produces great waste Q
these resources and brings grea
hardships upon operators. employees
and the public. In recent years
there has been continued demoral
cation in the bituminous coal, oil
and lumber industries. again com
mend the matter to the consideration
of congress.
UNEMPLOYMENT
AS an aid to unemployment tn
federal government is engaged in tn
greatest program of public building
harbor, flood-control, highway, wa
terway, aviation. merchant and nava
ship construction in all history. Gu
expenditures on these works durin
the calendar year will reach abou
$3.50 100000 compared with $260, 0,000
600 in 1928. Through this increase
construction. through the n1ainten
ance Of full complement of feders
employees. and through service I
veterans 1t is estimated that the fed
eral taxpayer is now directly contrl
buting to the livelihood of 10000, CO
Of our citizens.