Evening star., 1932-08-20
ECONOMIC PAR[EY
MAY HELP CREDIT
Administration Believes Con.
ference May Curb Trend of
Past Two Years.

International movement to curb such
huge flights Of credit as have occurred
in the past two years may evolve from
the approaching world economic con-
ference, administration leaders believe.
England, Germany and other Euro
pean nations as we'll as the United
States, 1t was explained today in high
quarters, experienced serious credit
withdrawal crises during the past two
years, President Hoover placing the
total withdrawn from this country in
that period at 50 400 600, 900, nearly half
Of it in gold.
Mr.. Hoover was said to be now advised
of turn in the movement. The total
of foreign credits in this country, he
has been informed, is down to S500,0 ,000,-
600. sum considered by some insuffl-
cient for normal needs of external busi-
ness. Latest reports indicate part OF
those Withdrawn are being returned.
Hoover More Optimistic.
Mr.. Hoover was described in this au-
thoritative quarter as basing upon this
| circumstance, as we'll as upon more
favorable economic reports from else
| where, a more optimistic feeling as to
| the immediate business outlook at home
than at any time within many months.
While the President is known to have
given thought to invoking aid to the
world economic conference to solve the
problem of great credit Withdrawals.
no hint of the form that aid might
take was forthcoming.
The importance OF the subject in Mr..
Hoover's eyes was emphasized, however,
J by one administration leader, who de-
clined to be quoted directly.
1t was largely because OF foreign
credit Withdrawals. this administration
spokesman said, that many American
| business men were fearful from Febru-
ary last up to less than month ago
| that the United States might be forced
| off the gold standard. That fear. 1t
was added. had impeded recovery in
lines not directly connected with the
foreign credits situation, accentuating
the situation.
Loan Demand Lets Up.
Another circumstance tending to i'm
| press the President with a more favor
| able business outlook is lessering of
| some part of the pressure on the Re-
| construction Corporation. Mr.. Hoover
| is said to have been yratified by reports
he has received in that regard.
Corporation officials said the flow OF
| applications was not as heavy as 1t had
been. The directors now hold daily
. meetings, whereas they met night ano
day for long period to meet the de-
| mands. The actual number of appl1-
| cations filed varies from day to day.
| Other factors named by an informed
| official as entering into the more op-
| timistic attitude of the President as to
| the general economic situation were
| creation of the Commodities Finance
| Corporation in New York; the forth
coming presidential conference with
business groups from the several Fed
eral Reserve districts. from which the
| President is hopeful further organized
attack upon Oppressive forces will flow
| and the improved levels i'll the COM
modify and security markets.
| Attack Under Way.
AS to the stock market rise, the same
| administration leader characterized the
| advance to date in price Levels as rep
resenting a rise from panic to depres-
sion levels
President Hoover was described a.
viewing the market situation as indica-
tive of turning point in public psy-
chology
His survey of all conditions noted has
given rise to the conviction. as related
by those closest to him, that the move
from defense to powerful attack upor
the depression" which he mentioned ir
his acceptance address, has already
taken place.