Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-21
BY WILLIAM HARD.

The purpose of the gathering of $50
business leaders Of the country at the
White House next week is to try to find
some way in which the colossal unused
money-credit resources of the country
can be carried into active industrial and
commercial use This is thought by
many of them to be the one great re-
naming problem in the desired tran
sition from depression to prosperity. 1t
is a problem which they have been
unable to solve in any large effective
degree in their own communities. They
hope to be abe to make better progress
toward its solution through comforting
together on a Nationwide scale in
Washington.
The comforting begins on Thursday
in a special preliminary meeting of the
members of the Organization Commit
tee" These gentlemen are the heads
of the local banking and industrial
committees" which have been formed
in the IL Federal Reserve districts CT
the country. Each committee had its
origin in the environs Of the Federal
Reserve Bank of its district. Each COM
nlittee is dominated. nevertheless, by
industrial rather than by banking in
tereStS.
At the head of the New York District
Committee is Owen D. Young, whose
primary interest is electrical machinery.
At the head of the Philadelphia District
Committee Is George H. Houston, whose
business is locomotives. At the head OF
the Chicago District Committee Is
Sewell L. Avery, chief officer of one of
the largest of American mail-order
r. he ~ ba
District Committee is J. w. Harris,
who deals in hats At the head of the
San Francisco District Committee Is
K. r. Kingsbury, who manages large
oil company. The prime concern OF
these gentlemen is not the piling up OF
reserves in banks. 1t Is the sluicing out
Of those reserves into the stimulation
Of business activity.
On Thursday the ~ members of this
Organization Committee" will discuss
their problem with President Hoover
and their principal spokesman will, in
all probability. be Owen D. Young. Mr..
Young, in collaboration with President
Hoover, is regarded as the most influen-
| tial author of the idea that led to the
| creation of the district banking and in
dustrial committees" and that has led
| now to their national assemblage in
Washington. Thus each of President
Hocver's main programs of the moment
Is led by Democrat.
The Reconstruction Finance Corpora
ton has for its chief executive man.
ager Atlee Pomerene. Democratic ex-
United States Senator. The "wel-
fare and relief mobilization of 1882"
| designed to give a national direction
this Fall to the relief of restitution, Is
10 Ial I,yv n lob
cratic ex-Secretary of War. Finally
but really supremely, the administra
| tons effort to break the log jam OF
| dollars In banks and start them moving
/ again as dollars in business Is asso-
ciated predominantly with Mr.. Young.
X X X
| It is an amusing coincidence that
! the motion picture company which Is
| affiliated with Mr. Young's radio en-
| terprises is now exhibiting film in
which the hero is banker who re-
! fuses to hoard his credit in bis vau)ts
and insists upon loaning 1t out to his
business customers In the course of
| the film this heroic banker breaches
numerous sermons to his board of di-
rectors on the iniquity of denying credit
| to good, proved business men in times
O1 duNelelIy. DSlldFiOA va eAALo
| banker, according to the film, brings
him a thrilling reward His satisfied
| and admiring customers rush into his
| bank with large new funds and save
| the bank from run which is getting
made upon it by mad mob of mis-
! led depositors. 1t is jocularly suspected
that Mr. Young intends to exhibit
| this highly instructive and moral drama
! to the boards of directors of all the
| banks of the country as part of the
movement set nationally going this next
week at the White House.
The situation is, indeed, one that calls
| for earnest measures. The efforts OF
| the Federal Government to date in the
strengthened bank solveney, but have
accomplished extremely little in trans
| lating that solvency into business loans.
! The Reconstruction Finance Corpora
| ton has lent approximately S750.000 900
to banks. The Federal Reserve sys-
tenn has bought approximately a bill
| lion dollars of Government bonds and
has thus put approximately billion
| dollars OF money or credit principally
into banking circles Thus the 40,000,-
| 900 depositors in banks and also the
J 100000 policy holders in insurance
| companies have undoubtedly been
enormously fortified in the safety Of
their deposits and of their policies.
The static" part of the problem-the
safety part-has been greatly assisted.
The dynamic" part-the part having
! to do with getting not only a safety.
| but a movement and a circulation Of
! credit-remains almost wholly unac-
complished. In fact, it recently has ex-
! hibited the sort of progress that has
| to be represented not by a plus, but
| by minus sign.
In the last report of the national
banks belonging to the Federal Re-
serve system their loans to customers
are shown as having declined 38,000,-
| OO0 in a week In that same week
their investments also declined $685.
100000 That this was not due at all
RI lark If resoIIrces Is ainlIndantlv Drnved