Evening star., 1932-05-21
Joint COMMITTEE
TO HELP BUSINESS
PROPOSED IN HOUSE
Group of 81 Members of Con-
gress Called for in Erik
Resolution.
EARLY ECONOMIC RELIEF
PURPOSE OF NEW GROUP
President Calls on Reserve Districts
to Form Bodies for Extend
ing Credit.

With the support of many leaders on
both the Republican and Democratic
sides Of the House. Representative Erik,
Republican, of Pennsylvania today in
trcduced a resolution to create a joint
committee on industrial and business
restoration.
The resolution calls for a committee
of Sd members, 26 to be appointed by
the president of the Senate, one mem
Der from the majority party and one
from the minority party from each Of
the following Senate committees: Agri-
culture and forestry, appropriations,
banking and currency, commerce, edu-
cation and labor, finance, immigration,
interstate commerce, judiciary, manu-
factures, mines and mining. post offices
and post roads and public buildings
and grounds.
The other % members would be ap-
pointed by the Speaker of the House,
one member from the majority and one
from the minority party, from each OF
the corresponding House committees,
and in addition the Ways and Means
Committee. The life of the joint COM
mittee would be only for the present
session of Congress.
To Seek Quick Action.
The Erik resolution provides that this
committee shall direct its attention
solely and exclusively to the problem OF
devising ways and means CT aiding and
encouraging business and industry
throughout the United States, of In
creasing the employment of labor and
the volume of business and of reviving
the confidence of both employer and
employe, with a view to recommending
speedily to Congress such action as the
committee deems necessary during the
present session of Congress to assure
the restoration of business and industry.
This committee would be authorized
to act during the present session OF
Congress whether or not either House is
In session or has adjourned.
Representative Erik suggests COM
prehensive program of some 20 major
proposals as an outline of the scope of
what he believes this joint committee
might consider.
President Hoover yesterday started
countrywide movement to get hesitant
bankers, industrialists and others to-
Eether to start credit flowing once more
into constructive enterprise.
The program is to apply the New York
Banker Businessman Committee plan to
each Federal reserve district. The gov
ernors of the reserve banks have been
asked to step out in organizing the
groups.
When all are formed, it is Mr. Hoo
ver's intention to call the chairmen to
Washington so as to coordinate the
entire program ION a national basis"
Still Held in Banks.
The situation now existing is that the
Federal Reserve Board has increased
enormously the cash and credit avail
able to individual banks for business ex-
pansion, but little or none of this in
vigorating money stream has moved be-
yond the bank vaults. Either business
men and manufacturers are unwilling
to incur new obligations until future
prospects are more definite, or the banks
are more anxious to keep a big reserve
than to extend credit.
The program launched in New York
by a committee headed by Owen D.
Young is to find ways of getting bor-
roWers and lenders together 1t is be-
1ieved that once credit flow is estab-
lished it may be depended on to con-
tinue largely of its own momentum.
President Hoover had an active part
Ir the formation of the New York group,
sending Secretary Mills to bring the
leaders together.
The Presidents pleasure at the initial
result of this effort, and his desire for
its Nation wide application. were made
known by him yesterday at press con-
ference.
HTOOver's Statement.
The President said:
Il am much gratified at the action
taken in New York by which joint
committee has been appointed repre-
senting financial and industrial leaders
of that city for the purpose, among
other things, of securing the expansion
OF credit facilities made available
through the Federal Reserve banks and
the Reconstruction Finance Corpora
ton shall be translated into industry,
employment and agriculture.
Il am in hopes that similar action
may be taken in other Federal Re-
serve districts. 1t would seem desirable
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