Evening star., 1932-01-04
HOOVER, IN SUDDEN
PLEA, ASKS SPEED
Relief Needs Greater Than
Apparent, He Tells Congress
in Surprise Message.
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the building and loan associations as
to restore these institutions to normal
functioning. Under the proposal be-
fore the congress, most of the capital
of these discount banks would be sub
scribed by the institutions participat-
ing in their use and such residue as
might be necessary for the Federal
Government to supply temporarily
would be repaid in time by such insti-
tutions as in the case Of TIE farm loan
banks when they were first organized.
Enterprise Stifed.
q. The discount facilities of our
Federal reserve banks are restricted by
law more than that Of the central banks
in other countries. This restriction in
times such as these limits the liQuidity
of the banks and tends to increase the
forces of defiation, cripples the smaller
businesses, stiles new enterprise and
thus limits employment.
Il recommend an enlargement of
these discount privileges to take care
of emergencies.
ITO meet the needs of our situation
it will not be necessary to go even as
far as the current practice Of foreign
institutions of similar character Such
a measure has the support of most of
the governors Of the Federal Reserve
banks.
"5. The development of plan to as
sure early distribution to depositors in
closed banks is necessary to relieve dis
tresS among millions Of small deposi-
tors and small businesses, and to re-
lease vast sums Of money now frozen.
IS. Division of the laws relating to
transportation in the direction recon-
mended by the Interstate Commerce
Commission would strengthen our prin-
cipal transportation systems and re-
store confidence in the bonds of our
railways.
These bonds are held largely by our
insurance companies, our savings banks
and benevolent trusts, and are, there
fore, the property Of nearly every family
in the United States. The railways are
the largest employers of labor and pur-
chasers OF goods.
Banking Law Provisions.
y. Revisions Of banking laws in order
TO better safeguard depoSitorS.
"8. The country must have confidence
that the credit and stability of the
Federal Government will be maintained
by drastic economy in expenditure; by
adequate increase Of taxes; and by re-
striction Of issues of Federal securities.
The recent depreciation in prices of
Government securities is a serious
warning which reflects the fear of fur
ther large and unnecessary issues of
such securities PromptnesS in adopt
ing an adequate budget relief to tax
payers by resolute economy and re-
strtction in security issues is essential
to remove this uncertainty.
Combating a depression is indeed
like great war in that it is not
battle upon single front, but upon
many fronts. These measures are all
a necessary addition to the efficient and
courageous efforts of our citizens
throughout the Nation. Our people
through voluntary measures and
through State and local action are pro-
viding for distress.
Through the organized action Of
employees they are securing distribution
OF employment and thus mitigating the
hardShips of the depression. Through
the mobilization of national credit as
sociations they are aiding the country
greatly. Our duty is so to supplement
these steps as to make their efforts
more fruitful.
Internal Economy First.
''The United States has the resources
and residence to make a large measure
Of recovery independent of the rest of
the world. Our internal economy is
our primary concern and we must forti-
fy our economic structure in order to
meet any situation that may arise and
by so doing lay the foundations for re-
Covery.
This does not mean that we are
insensible to the welfare Of other ma
tionS or that our own self-interest is
not involved In economic rehabilitation
abroad which would restore the mar
Iets for our agriculture and other COM
modities. But it is our duty to devote
ourselves to the problems of our own
internal economy, not only as the first
necessity to domestic welfare, but as
our best contribution to the stability Of
the world as whole.
Action in these matters by the Con-
gresS will go far to re-establish con-
fidence, to restore the functioning of
our economic system, and to rebuilding
of prices and values and to quickening
employment. Our justified hope and
confidence for the future rests upon
unity Of our people and of the Gov
ernment In prompt and courageous
action"