Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-26

organized simply because there might
not be any buyers at times when oonds
were forced on the market for liquida-
! ton purposes" he continued.
| "The consequence was that very
| few bonds often would force down the
price of large issues and reflect in total
! large losses in security portfolios, when,
as a matter of fact, not the value OF
the bonds, but only disorganized mar
ket caused the decline"
Charles A. Miller, president Of the
Reconstruction Finance Corporation, in
explaining to the business leaders the
purpose of the corporation. said 1t Is
one fundamentally of the Federal
Government by which the public credit
is modified and placed at the service
of trade industry and finance.
He said provisions of the emergency
and relief construction act greatly en-
large the functions and increase the
duties of the corporation.
IF the corporation will act with Sufh-
Gent courage and can act with Suf1-
cient speed. it should be possible to give
employment, with funds made available
under these provisions, to large num-
bers of workers in the varied trades now
least employed" he said.
Opposition Appears.
But already opposition Is making its
appearance, and there seems Ekeli-
| hood of the corporation being obliged
! to decide, in many cases, vigorously
debated question as to whether the pro-
posed project is really advantageous to
| the community or even to the varied
classes to whom employment will be
given. In solving these problems, the
corporation will have to rely greatly on
the advice and assistance Of this or
ganiaztion and its constituent local COM
mittees."
Mr.. Miller asserted that among other
new responsibilities imposed by the
| amended act is that of setting UP
regional agricultural credit corpora
lions, with a minimum capital of S.
900 900, in any of the Federal banks
where they are needed.
This I believe to be Of the highest
economic Importance, and to involve
perhaps, the greatest difficulty OF any
Of our new duties" he said.
These institutions are greatly needed
not only to finance the feeding OF
live stock which is natures method
of preparing a market of grain, but
to preserve the herds and flockS from
being sacrificed at this time of dis
| treSS. .
THAT the difficulties inherent in the
attempt to satisfy the agriculturists and
at the same time to protect the cor
poration from loss from unsafe loans
are considerable, goes without saying
One can only point out that similar
difficulties exist in banking operations
and that they can only be minim1Zed
by the most painstaking selection Of
personnel and the most rigid oversight
by the parent body. These, the directors,
pledge themselves to give.
Mission Temporary.
I'm many and probably in all Of these
ways the Reconstruction Finance Cor
poration will seek to promote the reStora-
ton of our country to its normal condi-
tion-which is a condition OF reason
able plenty and of economic security
But 1t shall never forget, and believe
it never will forget, the temporary ma
ture of its mission. 1t should seek. and
I believe it will seek, to discharge the
greatest trust committed to it, as to
avoid to the greatest extent possible
any competition with private enterprise
and any shock to business or industry
when its work, being done, and I hope
| well NOllCI ~ 4lAAoAiJ 40 NAAoA
ter"
Franklin w. Fort, chairman of the
Federal Home Loan Bank Board. said
his board was naturally still cropping In
the dark on many vital matters of or
ganization and policy. He appealed to
the business men for your help and the
indulgence Of the people"
Pomerene AssaiIs Critics.
Atlee Pomerene, the Democratic
chairman of the Reconstruction Corpo.
ration, voiced belief that this return
of confidence is here to stay" and as.
sailed critics of corporation loans.
Pomerene said 81 per cent OF the banE
depositors in the United States had beer
benefited by the loans made by ths
corporation.
There has been criticism by somt
who are always ready and willing tx
criticize no matter what the Govern
ment may do, that provision has beer
made for banks and railroads, but moth
ing done for the individual" he said
How strange that any thinking mar
should make such statement"
In the six months before the corpora
ton began it's work, he said, total O
1850 banks failed In the six months
!, after it began work. he added. only 60
SQcn institutions nave CLOSED LllelT QCOTS
with a total of SO banks falling durtnl
the present month.
He said that in towns Of 5000 or les
698 per cent Of the corporations loan
to banks have been made.
Pomerene added that the loans Il
railroads, insurance companies ant
mortgage investment companies also hat
aided private citizens by permitting con
tinuation of employment and securing
policies. He said if he had the pcwe
e he would compel merchants and manu-
f facturers to buy one-third more good
. this year than they bought last yea
v and that he would compel overliqui
0 banks to be more generous in thei
S loans.
Chaplin Offers Aid
a The delegates were urged by Secretar
s Chaplin to avail themselves Of the in
v formation and facilities of the Com
/ merce Department in their bushes
= stimulating program.
The Department Of Commerce, a
e stated by President Hoover when Secre
v tary of Commerce IL years ago, Is nc
L an organization for the regulation
It trade and industry-it is in the wide:
e sense a department Of service to IN
It dustry and commerce." Chaplin salt
If In its present form, the departmer
!. represents q fulhllment Of these ideal
L. sI cannot URGE too strongly that bus