Evening star., 1932-08-30
Rate by Mail-PayabIe in Advance.
Two Steps Toward Recovery.


came out of the conference here last
week Of the Business and Industrial
Committees who met with the Presi-
dent were the proposed moratorium
on foreclosures and the initiation OF
the spread work" movement-the
shorter work day and work week-as
o national policy.
Chairman Fort of the Federal Home
Loan Bank Board revealed the suspen-
sion of foreclosures for period Of sixty
days In his address to the conference.
At that time he had already received
the cooperation of Controller Pole,
who ordered every national bank re-
ceiver to suspend foreclosure proceed
ings for sixty days, and subsequently
kilograms were sent to State supervis-
ing authorities requesting similar
action. The response of these authori-
ties has been immediate and encouraging
But it would be unfortunate, and
might become demoraliAng boom
erang, If this moratorium on debts, "
as it has been popularity described, were
misunderstood. The controllers order
applies only to the receivers Of national
banks, and the State authorities are
dealing with the receivers Of State In
stitutions. These receivers are now
In the process of hquidating assets to
pay of depositors. Many Of them,
HEr rao~t hoe eaid xx,oro y,of,,ro1Iv ro-
sorting to foreclosure to satisfy credi-
tors and depositors. What his proposal
amounts to is that they let up on this
particular phase of liquidation until
the Federal Home Loan Banks can
organize and take over mortgages as
security for loans, thus fulfilling the
primary purpose Of their creation dur
ing the existing emergency.
The moratorium" does not mean that
the day has past when the debtor must
meet his obligations. AS a matter of
fact, all banks should be willing to
make new arrangements allowing debt
ors to refinance obligations to prevent
foreclosure. This, it may be said, is
not because Of any philanthropic senti-
ment on the part Of the banks, but is
sound business. Mr.. Forts proposal
will doubtless bring to the attention Of
institutions the purpose Of the home
loan banks more quickly and dramati-
cally than anything else could. It may
have the desirable effect Of preventing
those institutions from resorting to fore
closure which, in the frenzy for hqui-
dstion, are alarmed over arrearages in
interest and tax payments. If they
can be led to seek every other method
before they foreclose, Mr.. Forts sug-
gestion will have been successful.
The President emphasized that the
"spread work" movement is not proper
ly the function Of government, but must
be joint program between employers
and employees. But he doubted If any
thing would SO greatly accelerate en-
ployment and recovery as further
spread Of equitable plans for sharing
the available work" His statement
came at a time when the short work
! week and short work day are receiving
increased study from labor and busi-
ness. Myron c. Taylor, chairman Of the
board Of the United States Steel Cor
poration, recently announced the sue
cess of that corporation in having
adopted the policy at the beginning of
the depression of keeping everybody at
work some Of the time. Last week the
Advertising Club Of New York, an
nouncing another seven point" recovery
program, noted the fact that "the gen.
eral thought that can be expressed-in
regard to the spread-work movement
Is that both business and labor must
plan the hours of work SO that the
spread of gainful employment might be
properly distributed among those who
are able and should be employed" q
The Reconstruction Finance Corpora
ton includes as one Of the require
ments to be met by borrowers for self
hquidating construction work an agree
ment to employ labor on thirty-hour
week basis. This alone will serve vastly
to hasten adoption Of similar programs.
Conditions in industry vary with every
class Of work, and while the shorter day
and week can be considered as a new
national policy, the execution of that
policy will necessarily have to be left to
individual agreements between en-
ployers and employees.