Evening star., 1932-01-07
Everybody's
Business
Reconstruction Finance Cor
boration Aid E*bected to
Stop Bank Failures That
Cause Liquidation.
BY DIR. MAX WINKLER.

| Special DlSpatch 10 Inc StaI
NEW YORK, January THE crea-
| ton of the Reconstruction Finance Cor
poration is one of the most definitely
| constructive developments which the
Government has undertaken thus far.
Formed to extend aid of financial
nature to banks, insurance companies
and other bona fide financial institu-
| tions in need of accommodations, 1t
| should succeed in bringing about a stop
to the diSheartening bank failures re-
ported within the last two years, which
were largely responsible for the con-
tinued liquidation.
The work which the corporation is ex
pected to engage in should be of a more
concrete character than that of the
National Credit Corporation, organized
| with private capital. The situation had
become too serious for private initiative
to cope with. Government action could
no longer be delayed While 1t is true
that the National Credit Corporation
was created to aid financially embar-
rassed banking institutions, its provi-
sions were such that bank eligible for
assistance did not have to go to the
corporation, but could obtain readily
all the aid it needed elsewhere.
Activities Require Courage.
Courageous advertising plus aggressive
merchandising will accelerate economic
recovery, according to Gilbert T.
Hodges, president of the Advertising
Federation Of America.
There are thousands of individuals,
Mr. Hodges continues, with ample funds
who should make purchases now, Cour-
age not timidity, is the essential quail
ity for the alert business executive who
hopes TO move financial reserve into
active channels.
The outlook for the railroads is not
discouraging if remedial measures are
not too long delayed, says H D. Pollard,
president and general manager of the
Central Of Georgia Railway.
Mr.. Pollard thinks the adjustment of
wages and the slight increase in freight
rates authorized by the Interstate Com
merce Commission will be helpful. He
also points out that legislative action to
regulate, tax and supervise competitive
forms of transportation on basis CON-
parable to that of railroads will assist,
and the revival of industry and COM
merce will have a favorable effect.
Annulment of a recent order allowing
reduction Of grain rates in the West
ern territory should help the st. Louis
San Francisco Railway to the extent of
$l,750,000 according to E. N. Brown,
president.
Mr.. Brown believes that the road is
cared for at least until March /, when
interest on the consolidated mortgage
bonds falls due. If the Reconstruction
Finance Corporation Is actually going to
do the things which are expected of it,
the Frisco as well as other transporta-
ton systems similarly situated should
be able to secure the necessary accom-
modations, thereby insuring the con-
tinuance Of interest and sinking fund
payments on their bonded indebtedness.
f. Private Debt Payments.
Private debtors are going to pay un-
less extraordinary political or economic
forces make it impossible, Clarence Dill
lon, head of Dillon, Read & Co., told
the United States Senate committee in
Vestigating American loans abroad.
In every country the integrity of the