Evening star., 1932-05-20
FINANCIAL GIANTS
MOVE TO PUT IDLE
MONEY TO WORK
Owen D. Young Heads Group
Composed of lndustrlalistS
and Bankers.
RECOVERY OF PRICES
is ONE OF DETECTIVES
Committee Formed to Make Fed
eral Reserves Credit Expansion
Policy Effective.
BY the Associated Press.

by the Associated freSS.
NEW YORK, May 20-A new move
10 put hundreds of millions of idle dol
lars to work was started today by a
powerful committee of bankers and in
dustrialists under the Craftsmanship OF
Owen D. Young. The group was called
together by George L. Harrison, COVER
nor of the New York Federal Reserve
Bank to make the Federal Reserves
policy of credit expansion effective and
in answer to a demand in many quar-
ters for more drastic means of stimulat-
ing a recovery in prices.
It was pointed out that in spite OF
the fact that the Federal Reserve system
has purchased $725,o00,000 OF United
States Government securities, releasing
funds capable of supporting s7,25O,oO
900 of bank credit the defiatlon OF oank
loans and investments has been un-
checked. Fear and uncertainty on the
rart of banks and the investing public
alike have prevented the reserves
policy from taking its full effect.
Hope to Put Money to Work.
By the formation of the new COM
mittee, financial authorities hope to nnd
the means for bringing together the vast
surplus of idle funds in the banks ano
the many worthy projects IN need OF
credit that exist throughout the country.
Members of the group said after tnen
organization meeting yesterday tnat
nothing suficiently definite had been
arranged for them to be able to COM
ment upon their program. Flnanclal
leaders suggested, however, that one
nossible avenue of credit expansion lay
in loans to building and loan societles
bv the large commercial banks, answer
ing a demand for credit for financing OF
small homes.
Another possibility suggested was the
extension of credit to farm loan oanks
in order that these institutions might
more freely grant accommodation 10 tne
agricultural districts.
Committee Announced.
The membership of the committee.
as announced by Mr. Harrison, follows:
owen D. Young, chairman, General
Electric Co. chairman; Mortimer N.
Buckner, chairman. New York Trust
Co: Floyd L. Carlisle, chairman, Con-
solidated Gas Co.. Walter s. Gnoro,
president. American Telephons q Ieie-
man. National City Bank; William G.
potter, president, Guaranty Trust Co;
jackson z. Reynolds, president, First
National Bank; Alfred p. Sloan, Jr,
president. General Motors Corporation:
walter C. Teagle, president, Standard
OIL Co. Of New Jersey; A. A. Ttlney,
chairman, Bankers Trust Co.; Albert
H. Wiggin, chairman Of governing
board. Chase National Bank; Clarence
M Woolley. chairman, American Eaoia-
tor g. Standard Sanitary Corporation
Banking authorities say one OF the
chief difficulties in the way OF rapid
and successful operation OF the red
eral Reserves credit expansion has been
the concentration Of funds IN New
York. principally because bankers In
other parts of the country are either
unwilling or unable to make use OF
their funds.
Concentrated in New York.
AS the Federal Reserve has purchased
Governments, the funds put into the
market have tended to concentrate in
New York, even though much OF the
securities purchased by the board have
been sold by banks in other parts OF
the country. Many interior banks
wishing to dispose of some OF their
"Governments' will sell them through
New York, 1t was said, and then leave
the funds on deposit rather than recali
them.
In the face of this piling up Of idle
money here, New York bankers have
had great dificulty in finding employ
ment for money.
II was suggested that the new Finan-
cial Committee, providing leadership Of
the strongest character, will be aoie 10
devise some means to@ make this huge
s1rplus available where 1t Is most
needed. by recommending to banks
worthy outlets for the money, by sup
plying the leadership needed to oppose
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