Evening star., 1932-02-24

BENEFITS likely to be derived by the
ing bill are emphasized in press COM
ment. Under supervision Of the Fed
eral Reserve Board, there Is offered ar
extension OF rediscounting facilities
| with the prospect Of eliminating fears
that have been disclosed in the course
Of the depression. The use Of gold from
the vaults Of the Treasury is expected
to aid In producing beneficial results.
"It is Q temporary measure" says the
Springfield (MassD Union, which re-
lakes credit restrictions, for q one-year
, period, but which could be extended as
an emergency measure II circumstances
demanded. The effect upon the unem
ployment situation, OF the release OF
additional credits, will be helpful in
proportion as business men and the
banks avail themselves OF this oppor-
tunity to expand their facilities" The
New Orleans Item voices the opinion
that there are sound reasons for open
ing up credit through the Federal Re
serve and putting q stop to the contin-
ual pounding Of prices" As to present
conditions, the Item advises that they
are not going to keep the American
Nation from continuing to grow in real
WCa1Ll, VI 4AOA bSAA16 PNt uldhChIly
prosperous"
1t Is pointed out by the New York
Times that indefinite credit expansion
is not contemplated, while the Rock
Island Argus emphasizes the fact that
action Is discretionary with the Fed
eral Reserve Board" and makes the
further statement: 1T is argued that as
the legislation is to meet an emergency,
no financial imitation is under contem-
plation and that the idea that new cur
rency is to pour out Is flgment Of the
imagination The Roanoke World
News explains that the main purpose
is to pave the way for the liquidation Of
billions in sound securities now held by
banks, but not eligible for rediscount-
ing"
1.-THE deep-runnlng restraint, the
strength Of the safeguards set up by the
bill against any risk Of unreasonable in
fiation are most impressive" according
to the Boston Transcript. The Birming-
ham Age Herald remarks that 1T is in
teresting to observe that Senator Glass.
who has always insisted on the strictest
requirements In connection with the
Federal Reserve System, Is leading the
movement in behalf Of this arnelioration
of credit stringency."
Senator Glass probably Is right" in
the opinion Of the Chicago Daily News,
Gin afirming that the privileges OF the
measure will not be taken advantage OF
as widely as some expect. As matter
Of fact, few banks are suffering from
q shortage Of rediscountable commercial
paper. The additional rediscounting
privilege viii operate chiefly, though not
exclusively, as q fear-removing factor,
and will tend TO expand credit for legit-
innate purposes where 1t has been un-
duly restricted because Of the bankers
passion for hquidity. There Is no basis
for the fear. manifested in some quar-
ters, that there will be imitation as a
direct result Of the liberalization Of
credit"
The Boise Idaho Statesman sees mot
a step toward currency imitation so
much as shift in the mechanics Of
the Federal Reserve system, which will
allow 1t to function in the depression
as 1t was designed to function in normal
periods" The Cleveland News advises
that the fear OF imitation in the wake
Of the new credit Is not taken seriously,
as indicated by the strong support given
the measure by both parties" The Fort
Wayne News-Sentinel takes the position
that the purpose of the measure is to
place the Republics banking system in
the strongest possible position to resist
the sinister force Of credit defiation."
That paper emphasizes the legal status
Of q Feder4A AAseEve note" With the