The Indianapolis times., 1932-01-04
S-POINT PLAN,
HOOVER'S CURE
FOR AILING U. S.
Special Message Calls on
Congress to Rush
Finance Program.
Continued from Page u

duStry and labor against further
paralyEing influences.
g. Creation Of a system OF home
loan discount banks in order to
revive employment by new construc-
ton and to mitigate the difficult
ties of many of our citizens in OBJ
tanning mortgage renewals on homes
and farms 1t has the further pur-
pose of permanent encouragement of
home ownership. To accomplish
these purposes, We must liberate the
resources of the country banks, the
savings banks and the building and
loan associations.
s Under the proposal before con-
gress, most of the capital of these
discount banks would be subscribed
by the institutions participating in
their use and such residue as might
be necessary for the federal gov
ernment to supply temporarily
would be repaid in time by such in
stitutions, as in the case of the
farm loan banks when they first
were organized.
Restricted by Law
a. The discount facilities of our
federal reserve banks are restrict
ed by law more than that of the
central banks in other countries.
This restriction in times such as
these limits liquidity and tends to
increase the forces of deflation,
cripples the smaller businesses, sti-
fles new enterprise and thus limits
employment. I recommend an en-
largement of these discount privi-
legeS to take care of emergencies.
IS. Development of plan to is
sure early distribution to depositorS
in closed banks is necessary to re-
lieve distress among millions of
small depositorS and small buSi-
nesses, and to release vast sums of
frozen money.
"6. Revision of the laws relating
to transportation in the direction
recommended by the interstate COM
merce commission would strength
en- our principal transportation
systems and restore confidence in
the bonds of our railways. These
bonds are held largely by our in
surance companies, our savings
banks and benevolent trusts, and
therefore are the property of near
ly every family in the United
States. The railways are the larg-
est employers of labor and pur-
chasers of goods.
Need Bank Safeguards
81. Revision of banking laws in
order to better safeguard de-
poSitors.
g. The country must have con-
fidence that the credit and stabil-
ity of the federal government will
be maintained by drastic economy
in expenditure; by adequate in
crease of taxes: and by restriction
of issues of federal securities. The
recent depreciation in prices of
government securities is serious
warning which reflects the fear of
further large and unnecessary issues
of such securities.
Our people through voluntary
measures and through state and
local action, are providing for dis
tress. Through the organized ac-
ton of employers they are obtain
ing distribution OF employment and
thus mitigating the hardshipS of
the depression. Through the mobi-
lization of national credit associ-
ations, they are aiding the coun-
try greatly. Our duty is to supple
ment these steps so as to make
their efforts more fruitful.
The United States has the re-
sources and residence to make a
large measure of recovery independ-
ent of the rest of the world. Our
internal economy is our primary
concern and we must fortify our
economic structure in order to meet
any situation that may arise and
by doing so lay the foundations for
recovery.
Not InSensibIe to World
This does not mean that we are
insensible to the welfare of other
nations or that our own self-inter-
est is not involved in economic re-
habilitation abroad which would re-
store the markets for our agricul-
tural and other commodities. But
it is our duty to devote ourselves to
the problems of our own internal
economy not only as the first neces-
sity to domestic welfare, but as our
best contribution to the stabiliza-
ton of the world as whole.
Action in these matters by the
congress will go far to re-establish
confidence, to restore the function
ing 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 government in
prompt and courageous action.