Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-31
Holds Credit Change Is Evil
denced by Recovery of Wheat
and Cotton Prices.
SPA, 900, 900 is AGAIN
PUT INTO CIRCULATION
Cites Apprehension in U. S. Follow.
ing Suspension of Gold Stand.
ard in England.
BY the Associated Press.

BY the Associated Press.
A sharp upward swing In public con-
fidence which has led already to n
cessation of money boarding and the
end Of small bank failures is seen BY
President Hoover.
Almost exactly two years after de-
fiation Of the stock market began in
1929. the Chief Executive cited yester-
day very great change" for the better
in credit conditions, with its practical
effect evidenced by recovery In wheat
and cotton prices
Evidence over the last week indicates
that not only has boarding ceased but
actually $4,000, 900 of boarded money
has returned to the banks" Mr.. Hoo
yer said. +" The small bank fall
ures have almost ceased, foreign
exchanges are returned to q basis at
which 1t is not longer advantageous to
ship gold abroad
The practical effect of this recovery
is shown in an increase In the price Of
wheat by 10 cents bushel and cotton
by SIS to $40 bale"
Happy to Note Change.
Opening his remarks to newspaper
men at his regular Friday conference,
the President said he was happy 70
note the very great change which is
evident In the credit situation" since
announcement on October of plans
for the billion dollar credit pool
to strengthen banks.
Obviously he was happy. Economic
conditions have occupied his time for
months almost to the exclusion Of
other questions. But not In some time
hos ha had cn V,aar.u ~ rsftnak ha alv.-
sidered favorable signs of changes for
the better
Although he held q prepared state
ment before him, he departed from Il
several times to emphasize his view OF
conditions. As he read Of "a wave OF
great apprehension" in the United
States following suspension Of the gold
standard in England ne added extem-
poraneously that the real volume OF
this apprehension had not been ape
preciated by the average American citi-
zen.
Considerably, as President Hoover
was visualizing improved public con-
fidence in this country, somewhat
similar prediction of an uptllrn In
Americas neighbor to the north came
from an official source.
Canada Notes Change.
At Ottawa the Department Of Trade
and Commerce announced q general
Quickening of the industrial pulse OF
Canada. Weekly bank debts increased
and so did employment.
Only Thursday President Hoover re-
ceived the report of the Federal Re-
serve Board for the week ending octo-
Der %, showing for the first time since
August an indication that boarding
had been eliminated
It showed money In circulation In
this country was SIS, 480 900 900. de-
crease of $24, 000, 900. Officials held
this to indicate money had been brought
from hiding to decrease the need for
other in circulation.
The President expects an even
further improvement In credit coIadi-
lions soon when the credit pool forEned
by private capital throughout the coln-
try begins operating. He has been In
formed that only few days viii elapse
now before 1t begins utilizing its huge
revolving fund to unloosen frozen bank
ing assets for trade channels.
It will rediscount for banks securities
not eligible for handling by Federal
Reserve banks.
The Presidents statement yesterday
follows
1T am happy to note the very great
change which is evident in the credit
situation since the announcement OF
financial plans on october z.
Following the abandonment of the
gold standard in England, a wave OF
great apprehension spread over the
country. boarding Of currency rose TO
the high point of 5000. 900 900 a week
between that time and the announce
ment of the credit pool and other credit
measures.
Country bank failures had risen TO
nearly IS a day during this period. At
the same time the drain of gold aboard
due to the alarm of foreign holders
of American credits had in this period
risen to as high as over $20o. 100000 .
week
Evidence over the last week indi-
Gates that not only has boarding ceased,
but actually S24, 900 Of boarded
money has returned to the banks. The
small bank failures have almost ceased
the last report showing only out
of 10000 total.
Foreign exchanges are returned to .
basis at which 1t is no longer adj
to ship gold abroad.
THE practical effect of this recovery
is shown in an increase In the price
Of wheat by 10 cents or IL cents .
bushel and cotton by SIS to $40 bale"