Evening star., 1932-02-06
Executive Conference Held at
White House to Plan Ma
tionaI Campaign.
COL. FRANK KNOX TO PLAN
PROCEDURE FOR DRIVE
Hoover, Dawes, Mills and Others
Address Civic and Business
Leaders on Proposal.
BY the Associated Press.

BY the Associated Press.
President Hoover today obtained
unanimous pledge from twoscore ma
tional civic organizations to join In
unified campaign to stop money hoard
ing that stiles business rejuvenation.
After an executive conference Of an
hour and half at the White House,
at which the President pleaded for aid,
it was disclosed by Charles G. Dawes
that Mr.. Hoover had obtained a pledge
of support.
Machinery Of a definite campaign
organization, contemplated by the Pres
ident, was left to a further meeting.
Half Dozen Make Talks.
Instructions were agreed on under
which Col Frank Knox, publisher Of
the Chicago Daily News, will work out
a plan of procedure, to be submitted to
the same group that met today.
After addresses by the President
Dawes and Acting Secretary of the
! Treasury Mills, the group heard
| speeches by more than half dozen OF
! its members.
Among them were William Green,
president of the American Federation
! Of Labor; julius Barnes, chairman OF
the board of the United States Cham
| Der of Commerce, and Harry j. Haas,
| president of the American Bankers
Association.
| The shortest was by John Thomas
| Taylor, legislative representative Of the
| American Legion. saying:
More than 1250000 Legionnaires
are behind you. Mr.. President"
Farm Leader Gives Program.
On leaving the meeting, Edward A.
! ONeal, president Of the American
statement on organized agricultures
three-step program for the restoration
of national prosperity"
1t included IS per cent cut in gov
| ernmental costs, to be brought about
! by reorganization; "a change in our
credit structure to provide recognition
! of the basis of wealth, coupled with
adjustments in our monetary system
and "a restoration of the purchasing
power of agriculture.
The federation head urged the
broadening Of the Federal Reserve re-
discount rate as calculated to do more
| than any other one thing to restore
| public confidence in the soundness OF
our business structure"
The Chief Executive pointed out that
! the American monetary system depends
upon mobile currency. and that the
| 81 800 10000 he estimates is boarded
! has caused a credit delation Of approx
imately sl0,000,0 100000.
President Cites Figures.
The President had figures to show
that partially because of boarding and
partially because Of depressed security
values, the gold backing of currency by
the Federal Reserve System has risen
| from the legal 40 per cent to between
| rs and 80 per cent.
Mr.. Hoover sat in his customary cab
met chair, with small table before
him. The remainder OF the room, now
ever, was stripped OF its customary
furniture. Cabinet chairs were moved
into an adjoining hallway, and the long
cabinet table was placed in the lobby
OF the executive offices.
AS the meeting assembled, Dawes
circulated about the crowd, smoking
his familiar underSlung pipe.
The cabinet room was crowded to the
doors by a throng apparently greater
1
were in, however, and majority seated
upon narrow gilt chairs placed in close
packed rows across the room.
The man who will head the organlZa-
ton. however. was absent. Col. Knox
is now in New Hampshire. Pros
poets were headquarters OF the CEN
trail group, which is to coordinate the
educational efforts of local organizations
in every community, will be set up in
Chicago.
Hoover Studies Problem.
President Hoover gave consideration
last night to the problems presented %
boarding. The solution he sees as oaS
of education.
The Chief Executive was known -
be appreciative of efforts by newspapers
throughout the country to aid in ex-
planning In simplified terms the funda-
mental economic results of withdrawing
money from the credit stream.
Suggestions have come to his desk
that the Government overcome the re {.
suits of boarding simply by printing
81 ,300,000,000 of new currency. The
impossibility of this, he has explained
to inquirers, lies in the fact that each
printed dollar must have behind it 40
cents worth of gold with the remainder
accounted for In part by paper eligible
for Federal Reserve rediscount.
Mr.. Hoover feels that if boarded
money can be returned either to banks
or put into sound investments, for more
than this amount of gold can be
brought back to the credit stream. The
banking system is based in part upon
the theory that for each actual dollar
of currency up to $40 of credit can be
circulated.