Evening star., 1932-04-15
COMMODITY PRICE |
STAb|L|Z|NC PLAN
Subcommittee for Reserve
Board ACtion-Meyer Again
to Be Consulted.

BY the Associated Press.
The principle Of directing the Fed.
eral Reserve Board to seek to increase
and stabilize wholesale commodity
prices was agreed upon today by &
House banking subcommittee.
Before it asks the full committee to-
morrow to approve the measure, how
ever, Representative Goldsborough
Democrat, Maryland. will confer with
Eugene Meyer, chairman or the Re-
serve Board.
Meyer told the subcommittee yester-
day he thought the plan madVisable
since the board already was trying tt
do what Goldsborough'S bill would in
Struct it to do
AS now phraSed. the bill would direct
the Federal Reserve Board and banks
ito take all available steps to raise the
present Debated wholesale level OF COM
modify prices as speedily as possible tc
the level existing before the present de-
tiation and afterward to use all avail
able means to maintain such whole
sale commodity level of prices
Congress Efforts Spurred.
Spurred on by the prediction Of Mr.
Meyer, that success awaits the present
concerted movement to set business on
the upSwing. Congress continued to oil
rect its efforts toward business better
ment.
Meyers forecast was embodied in
testimony yesterday before the House
Banking Committee and came as a
Senate banking subcommittee approved
the revised bill by Senator Glass to
restrict the use of Federal Reserve
funds for speculative purposes. The full
committee may act on the measure
tomorrow.
Earlier, President Hoover conferred
with Secretary Mills, President Dawes
OF the Reconstruction Finance Corpo-
ration and Meyer Mills said the affairs
of the Reconstruction Corporation were
discussed. Later the President talked
with James C. ROop, director of the
budget.
Chairman Smoot of the Senate
Finance Committee from the Senate
floor urged holders of stocks not to sell
them at present prices. He advised
that they be held if it was at all pos
sible to do so. There is more intrinsic
value behind them than is reflected in
present quotations, he said.
Senate Banking Committee members,
who have criticized the conduct of the
investigation of the New York Stock
Exchange. virtually agreed to give ad-
ministration charges of bear raids" the
right of way when the inquiry is re-
sumed Monday. The appointment of
Samuel Untermyer of New York as
special counsel to prosecute the inves-
tigation will be deferred until after that
meeting, at which Richard Whitney,
president of the New YORK Exchange is
to give list of short sellers.
Officials noted with pleasure yester-
days sharp upturn on the Stock Ex-
change, which came after an early sell
ing furry had produced new lows in
numerous issues.
Meyer appeared before the House
Committee in opposition 10 a measure
under which the Reserve Board would
be instructed to increase commodity
prices. He said every effort is already
being made to accomplish this purpose
and Hkened the resolution in question
to ordering man to run 100 yards in
10 seconds.
He believed beneficial results would
follow the Federal Reserves decision
TO increase the volume and rate at which
1t Is buying Government securities.
THE first thing to do is to arrest
to the utmost possible extent the ad-
verse tendencies" he told the commit
tee. If you can hold the line you
can reverse the trend. I am hopeful
that We are now at the point where
we will be able to hold the line.
More Recovery Help.
Il do not like to prophesy and prom
iSe, but l hope with all the things
that are being done, while we will not
stop the effect of losses already suf-
tered, we have made and will make
some contribution to recovery"
He recalled there had been a diminu-
ton in the amount of boarded money
and an increase in bank creditS-twC
favorable signs. But he added:
There's always lag after a SLUMP
and it takes time for money to SHOW
its effect on business"
Under the revised draft Of the Glass
bill. which was approved by its author
Senator Glass. Democrat, of Virginia
and some of the bankers who had OBJ
jected to provisions 1t previously con
tanned, the Federal Reserve BoarC
would be given discretion to regulate
loans on collateral.
This change was recommended b.
Meyer to replace the original section
of the bill writing rigid restrictions int
the law The revised measure alst
would extend branch banking privilege.
to banks in all States. instead of con.
fining it to those States which nov
permit branches Of State institutions.
L. E. Wakefield, president of the frs
National Bank of Minneapolis, an
nounced that the new draft was sat
isfactory to him and number of othel
bankers who had protected some of tht
provisions previously in the bill.