Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-07
SIX POINTS IN PROGRAM.


SIX POINTS IN PROGRAM.
Hoover's Proposal Wins Approval Of
Political Leaders at Conference.
A momentous six-point program for
marshalling the Nations latent buying
power into commercial channels today
was laid before the American people
with the unified Endorsement OF Pres
ident Hoover and political captains.
1t included liberalization of the Gov
ernment's own rediscount restrictions
to permit acceptance OF certain classes
of industrial securities now ineligible;
creation of a $500 900 900 corporation
by private bankers TO handle frozen
paper of insolvent banks and supply
some cash soon to hard-pressed depos-
itors, and expansion of the Federal land
,, bank system to provide more adequate
credit accommodations for agriculture.
Placed before a colorful bipartisan
conference of congressional leaders last
night at the White House. the admin
istrations domestic plan won their
support in principle. While congress
sional action will be required eventually
to carry the program to completion, no
special session is contemplated.
BlameS Foolish Alarm.
The President failed, however. to gain
sanction to discuss with Premier Laval
Of France. on the latter's visit to WASH
ington this month, extension beyond
next June of the htergoyernmental
debt suspension. In one of the f1urries
of opposition which gave the Chief Elk
ecutive an insight into congressional
floor debate. he was told that any dis
| cussions of this kind with the French
premier would be on his own respon-
sibility.
Full support Of the people for the
program was asked by Mr.. Hoover.
In making public, after midnight. the
| proposals which, had brought the DEM
ocratic and Republican leaders hurry
ing from all parts Of the country, he
| said foolish alarm" was delaying the
return of better times.
| The proclamation of the depression
| by the succession of events in Europe"
he said. affecting as they have both
commodity and security prices. has pro-
duced in some localities in the United
States an apprehension wholly unjusti-
fed in view of the' thousandfold re-
sources which we have for meeting any
demand.
Must DispeI Doubts.
Foolish alarm in these sections has
been accompanied by wholly unjusti-
fable withdrawal of currency from the
banks . .
There is no justification for any
such situation in view of the strength
of our banking system, and the strong
position Of our Federal Reserve System.
Our difficulty is a diffusion of re-
sources and the primary need Is to
mobilize them in such a way as to re-
store in a number of localities the con-
dence of the banker in his ability to
continue normal business and to diSpel
any conceivable doubt in the mind Of
those who do business with him"
Following closely his conference with
the congressional pilots and more in
tensive discussion with private flnan-
for days, the President called together
today group Of representative real
estate men and bankers for further
| conferences at the White House.
He won approval for his immediate
relief program last night amid a set
ting the character of which has been
seldom seen in America!
Four Advisers Present.
This unusual grouping of the legis-
lative and administrative branches of
LIE (TONeIIHlSHG III d cause
agreed to support, in addition to the
three major points, appointment of re-
gional bankers committees to aid gen.
orally in credit expansion; liquidation
of some of the frozen assets of insolvent
banks. and other institutions: and, If
necessary, creation of a Government
agency similar to the old War Finance
Corporation which operated during the
emergency period to encourage domestic
| industry.
At the door of his study-in the room
where Abraham, Lincoln signed the
Emancipation Proclamation-Mr. Hoo
yer quietly received the 80 Senators and
Representa- tives whom he had sum-
moned Most of them serve on COM
mittees dealing with the questions in
volved
About the President were four Of his
own administrative advisers. They were
Secretary Mellon, Undersecretary Mills
of the Treasury, Gov. Meyer of the Fed
eral Reserve Board, and Walter Newton,
one of his own secretaries.
Borah and Garner Speak.
AS the President completed reading
deliberately his prepared proposals. de-
bate broke out over the proposed dis
cussion Of the debt suspension with
Premier Laval. 1t was challenged by
Chairman Borah of the Senate Foreign
Relations Committee and Representa-
tive Garner, the Democratic leader of
the House.
When the debate, with bitterness
lacking and humor occasionally inject
ing itself into the serious discussions,
ranged to the economic proposals, party
lines were dissipated. Democrat chal-
lenged Democrat and members of the
Chief Executives own party asked for
further details upon the qualifications
Of the proposals.
Senator Glass of Virginia, a former
Democratic Secretary of the Treasury,
recalled that suggestions that the Re-
serve system be permitted to expand
the base of discountable securities were
now under consideration by the Senate
Banking Committee.
Support from both parties came to
Representative Luce Of Massachusetts,
in his insistence that the group similar
to the War Finance Corporation be set
up only If necessary"
$l50,0OO,OO Subscribed.
AS the debate spread, President Hoo
yer was joined by Secretary Mellon and
his other personal advisers in meeting
questions with which they were ia
miliar.
For the private corporation which
will raise $500 100000 to aid banks that
have closed their doors, the President
said Ell IN nm nm had haav s,,he cri,n~l