Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-15
ECONOMIC REVIVAL
PROGRAM DECIDED
Cooperative Action to De-
feat Forces of Depression
to Be Undertaken.
BY CLAUDE A. JAEGER.
nusn. r5{tar

I Associated Press Financial Editor
NEW YORK, January 15.-A group
of the leading economists of the United
States, after two months of interchange
of opinion, have agreed upon program
of economic action which they believe
should revivify business, restore values,
increase employment, and strengthen
banks.
Warren M Persons, prominent econo-
mist in an exclusive interview with the
Associated Press today, said the pro-
gram has been Endorsed by trade asso-
Citations Congressman, Government
economists, farm organizations, and
prominent individuals. It's success, he
said, depended upon wide cooperation
of important interests. particularly in
duStrials and bankers, and that it
seemed assured.
Their program is relatively simple
and, DR.. Persons explained, represents
the least common denomination of effec-
tive platforms upon which agreement
seems possible.
Contraction Reaches End.
They start out from these four gen.
eral conclusions:
81. Though some important adjust
( mentS of various elements of cost and
overhead remain to be made, the gen.
eral contraction of credit and deflation
of prices have gone far enough.
% The United States can have sub
Stantial business recovery without wait
ing for solution of Europe's difficult
ties.
"3. Recovery is possible, on a sound
money basis without recourse to none
tary panaceaS, but
~ The 61nreSciOr1 will NOT pIIre II =
self and requires prompt, intelligent
and vigorous action"
Then the economists recommend the
four following steps:
Il. The enactment of the bill eStab
fishing the Reconstruction Finance Cor
poration to deal more effectively with
emergency situations.
%. Proper economy in municipal,
State anS national budgets and in
creased taxation
%. A liberal Federal Reserve policy
designed to check credit contraction
and encourage some expansion.
a. A commercial banking policy CO.
operating with the Reserve banks in
checking credit decreases and encourag-
ing increases, including
"(a) An increase in sound invest
ments.
sary Treasury financing.
"(c) Borrowing from Federal Re
serve banks when necessary to meet
these and other sound needs"
No Important Risks.
They express the conviction that
prosecution of these policies is sound,
involves no important risks and should
exert powerful pressure toward these
four ends:
Il. Stopping the downward trend of
prices
50. Returning boarded money to the
banks.
80. Restoring the normal value of
q. Starting the beginning of bust
ness recovery"
Economists and others in the action
taken, DR.. Persons explained, freely
offer their services "in a non-partisian
and disinterested movement to defeat
further economic suffering and destruc-
ton, but other interests, particularly
and bankers, must be re-
lied upon to make any program effec-
tive" The program, he said, was not
drawn up to advance any private inter-
est Of members of the group, other than
as private interests may be served by
general business recovery.
DR.. Persons, consulting economist and
former professor of economics at Har-
ward. is chairman of the group.
The first problem" he explained,
was to ascertain if there was a sound
economic program which could be eX-
pected to work, and the second was so
to develop it that a representative group
of leading economists of the United
States could jointly indorse it. The
third problem was to obtain the sup
port of all interests in the country nee
esSary to make the program effective.
The first two problems are solved, and
the third is in rapid process of solution.
Forces to Be Defeated.
United on a sound program, we can
and will defeat the forces Of deflation;
divided, we shall, ourselves, be Debated