Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-26

Many Methods Proposed.
After outlining the campaign insti-
gated in various sections to spread work
the President said many methods have
been proposed by labor and industrial
leaders to Systematically shorten hours
while I heartily favor the purpose
of these plans" the President asserted
81 agree with both the employers and
leaders of labor whom I have consulted
that its direction is not properly the
function of Government except as ap-
piled to the operation of Government
service.
Moreover, with all the various
phases of employment and operation to
be met in private business. no general
rule can be applied. Results must be
achieved through cooperation on the
part Of employers and employees suited
to each locality and industry. l suggest
YOU should consider the effective part
which you can play in further forward
ing organization to this end"
AS to reinvigorating credit, the Presi-
dent came out firmly and said
we need a better distribution OF
credit.
Credit is available, but in many sec
items it is flowing inadequately, which
would stimulate consumption OF goods
and employment. 1t needs resolution
to use our banking and governmental
resources and Coordination to make
them effective.
Cites Foreclosures.
There can be no question that there
are in certain sections large numbers
of businesses, particularly small bust
nesSes, which have been unable to ind
the credit facilities to buy raw materials
and to employ labor on goods which
they can sell. There are d1ttlcultles IN
live stocks and farm credits. There are
foreclosures of homes and farm mort
cages because of inability to secure
renewals. Yet credit is available II 1t
be properly directed" :.
In conclusion. the President informed
the business leaders that now, as always,
regeneration of the country Will be the
result of "the multitude of activities OF
our citizens and the sustained conf
dence of our people in its great future"
THE problem before this conference"
he added, lis not to settle great ques-
lions of the future or to estabilsh
artifcialities, but rather by practical
steps today or organizations contribute
to make more effective the activities OF
every agency which can promote the
recovery of the Nation"
The business leaders roundly ap-
plauded him when he said, "the great
war against depression is being fought
on many fronts in many parts OF the
world. One of the most stupendouS
actions of this great front has been the
long battle of the last 18 months TO
carry our financial structure safely
through the worldwide collapse. That
battle NAV be likened to the great battle
of Chateau Thierry. The attack upon
our line has been stopped. But I warn
YOU that the war is not over. We must
now reform our forces for the battle OF
scissors"
The President informed the conferees
that the reason for calling the con-
ference was that leaders were con-
WINGED that the major financial crisis
had been overcome and that we are
now able to take further steps in solu-
ton of the industrial and agricultural
problems with which we are still con-
fronted.
"a Proof of Our Resources"
"To have overcome this stupendous
crisis is not alone a tribute to the
courage of American people, but proof
of our resources. A moment in review
of the magnitude of the forces we have
overcome should strengthen our conf
dence for the future and the steps re
now propose"
Dealing IN retrospect, the President
took his audience back to the early
months of 1881 when the failures OF
banks decreased by 10 per cent from
the previous quarter. He said the
boarding of currency practically had
disappeared and signs of resumption OF
industrial activity and employment lead
the country to believe that it was right
ing itself.
Then there came to us concentra-
ton of catastrophies from abroad" he
declared such as we have not ex-
: perienced in the whole of our economic
history. The economic and political de-
moralization in foreign countries, weak
ened by the Great War and the treaties,
together with the general depression
itself, loosened a host of new forces OF
destruction"
The President recited that the first
impending financial collapse abroad was
the difficulty of the largest bank OF
Vienna in April, 1881. Then followed
difficulties, he said, of national banks
of Austria, of JugoSlavia and Of the
ReichSbank
Revolutions in Spain and Peru, and
In other South American countries
added to the difficulties. He recited the
difficulties experienced by the Bank OF
England and the policy of that govern
ment to abandon the gold standard
which was followed by Sweden, Nor
way, Denmark, Finland, Australia, In
dia and Egypt, with restrictions upon
the exchange of many other countries
which equally disrupted international
PAYMENTS and foreign trade
The effect upon this country was In
Simultaneous, he said American securi-
ties held abroad we're dumped upon
markets here. Stocks and bonds and
commodities prices were undermined
and our own borrowers on commodities
and on securities were called upon fol
more margin"
You know and I know that this
foreign exchange, the gold shipped
abroad, the currency and gold boarded
in our country, is taken from the baSt
of the inverted pyramid of our credit
structure, and translates itself into 6
strangulation of the volume Of credi
from 2 to 10 times even these huge
amounts Let no man believe that thest
are questions which are Of interest sole
~ to big business"
They are the origins Of millions o
human tragedies OF losses, unemploy
ment and distress"
The President did not leave the au
ditorium in the Commerce Department
Building, where the conference is be
ing held, until after the conclusion o
Secretary Mills address.
Young Explains Activities.
Owen D. Young, chairman of tn
Banking and Industrial Committee Q
the New York Federal Reserve district
explained the functions of the Me-
York group. organized on May Is,
act as clearing house for program
, in the economic field.
Before the organization, he said, tn
burden of talking about action to
large number OF different individual
and discussing it with them separated
inevitably resulted in so many differer
points of view that no co-ordinated &C