The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-08
HOOVER PLAN
UNDER WAY IN
NEXT z DAYS
$500, 900, Institution
for RediSCount Organized
With Rapidity.
WILL FREE BILLIONS
Presidents Program Will
Release Huge Sum in
Frozen Assets.
BY RAYMOND CLAPPER
United Press staff Correspondent


WASHINGTON, Oct. 8.-Presi-
dent Hoover was advised this morn
ing that the $5OO,OOO,OOO rediscount
institution, principal feature of this
new sterilization program, probably
will be incorporated within forty
eight hours.
George L. Harrison, governor Of
the New York federal reserve bank
telephoned this information to Mr.
Hoover just before the President left
the White House to address the
Pan-American conference.
This was believed to assure the
immediate effectiveness of part OF
Mr.. Hoover'S program, despite any
possible congressional delay on other
phases.
Mr.. Hoover expects his plans to
release approximately 100000 ,000
Of frozen assets.
Speed Up Organization
Harrison told the President that
work on the organization of the
new bank was proceeding with
great rapidity.
Details regarding the institution
will be laid Immediately before
every clearing house and banking
group in the country.
Many assurances of support for
the plan already have been received,
it was announced officially at the
White House, after HarriSon'S talk
with the President.
The new institution will not be
sectional, it was said, but rather
would be entirely national in char
acter. 1t will have a board of
twelve directors, one from each fed
eral reserve district.
An outline Of events preceding
the congressional conference at the
White House Tuesday night, when
Mr.. Hoover exposed his complete
program, showed today that he be-
gan developing the idea early in
September. His general purpose was
to obtain unity OF action among
banking, industrial and congress
Sional groups.
Plans ThreefOld Program
Last Friday, Mr.. Hoover deter
mined upon the propositions which
he placed this week before the con-
greSSional leaders.
His program was threefold. 1t re-
Quired the cooperation of govern
ment agencies, such as the federal
reserve board, the farm board and
the treasury; voluntary action by
the banking community, which was
to provide the $500,000,0O0 fund
and generally cooperative action
among the banks; and, finally, posi-
tive assurance that a legislative
program could be enacted.
Details of the plan were so inter-
locked, in the Presidents view, that
cooperation of all three groups,
governmental, banking, and con-
gressional, was essential if the pro-
gram was to be competent and as
Sured.
Another step in the campaign to
loosen credits was taken by Mr..
Hoover late Wednesday in a confer
ence at the White House with ten
leading bankers, insurance execu-
tives, and real estate men. A plan
was formulated for real estate
finance program designed to remove
some of the existing burdens from
the man whose home is mortgaged.
Mortgage Bank Proposed
The conferees discussed a pro-
posed central mortgage rediscount
bank, under government supervi-
sion. Its purpose would be to
finance banks and institutions
holding frozen long-term mortgages.
Not all the confereeS reached
accord on this proposal, but Mr..
Hoover feels assured a definite pro-
gram will be presented to him be-
fore his conference on home owner
ship and home building here
Dec. 2.
1t was said authoritatively he is
planning to present this program
TO the new congress for approval.
Government officials expressed
gratitication today at the response
OF bankers to the plan.
1t was learned the treasury NAV
recommend to congress a plan
whereby Federal Reserve banks may
aid defunct institutions by taking
out sound assets and advancing cash
which could be distributed to depoS-
itorS.