Evening star., 1932-02-09
Col. Knox Declines to Reveal
Campaign Outline Until
It Is Finished.
STATE LEADERS SOUGHT
TO AID IN ORGANIZATION
Headquarters to Be Opened in
Chicago for Nationwide
Movement.

BY the Associated Press.
To back up the big anti-hoarding
campaign now beginning, President
Hoover is working out specific plan of
action for drawing hidden dollars back
into circulation.
Its nature SO far is strictly secret.
Col. Frank Knox of Chicago, national
leader of the anti-hoarding organiza-
tion, revealed existence of the presi-
Dental project, but said nothing could
be told about it until it was copper
riveted and complete"
Knox is planning a rapid campaign
through countrywide organized units
TO drive home the idea that each COM
munity must get behind Itself
I'VE must convince each individual
that for his own selfish interest he
must have confidence in his own insti-
UutionS and that the effect of withdraw
ing money from them results in eco
nomic Strangulation, was the way he
put the objective.
Headquarters in Chicago.
Already he has sent out kilograms to
obtain names of aggressive men, we'll
established in popular confidence, to
head each State Committee. He plan
ned after a further conference with
Ogden Mills today to hasten to Chi
cago, where he will establish headquar-
terS for the drive. The heads of the
national organizations recently called in
by President Hoover will serve as
central advisory group. To illustrate
his view of the problem, Knox said:
Much of our trouble seems to be
national headache induced by eyestrain
from looking across the Atlantic. We
can't remedy conditions in Europe, but
we can remedy them here"
The Reconstruction Corporation, un-
der Charles G.. Dawes, meanwhile, an
nounced a set of general rules to gov
ern its lending of Government funds.
These provide limit on leans of three
years at the outside but leave terms,
maturity and nature of security to de-
cision of the board in each individual
case. The borrowing corporation will
be required to make a clean breast of
its condition. Special provisions were
attached to railroad loans, the entire
rule structure following in general the
terms of the law creating the corpora
ton,
Knox Gives Diagnosis.
Sitting with legs crossed in All Office
adjoining that of the chief executive,
Knox announced his ideas for "a quick
campaign done against the clock and
going down to the grass roots of every
community"
The Chicago publisher estimated
that 92la per cent of the articles pro-
duced in this country are consumed
in the domestic market, with only 7l2
per cent shipped abroad.
If necessary" he said, 1--WE could
toss this 712 per cent out of the win
dow and still lead the world back to
prosperity. If once We restored conf
dence at home 80 per cent of our
troubles are over"
Meanwhile other agencies for ma
tional relief moved forward Directors
of the $2,0O0,00O0 900 Reconstruction
Finance Corporation conferred with
members of Congress from the agri-
cultural States and held an extended
parley with Secretary Hyde on agri-
cultural loans.
Knox in outlining plans for his
campaign, said kilograms already had
been dispatched to every State looking
for leaders who will be charged with
setting up an organization in every
uniting in the community
newspapers. Boards of Trade, the Am
erican Legion, Rotary, Kiwanis, Ameri-
can Federation of Labor and other
groups.
Working Out Plan.
The Chicago publisher said President
Hoover and other Federal leaders were
at work on definite and specific plan
Ito bring money out of hiding"
He hinted it might involve some at
tractive magnet for pulling out the es-
timated ST, 500 900 900 in boarding, but
said no outline of it could be given now.
He cited as an example of what is
necessary the experience Of Aurora,
Ill. When people became nervous"
there and began withdrawing money
from their banks, he said, an appeal
was made to the mayor.
"A moratorium on all business was
declared for five days" Knox explained,
"and everything was shut down except
the grocery and drug stores. During
that time the community caught up
with itself through town meetings,
canvasses and a visit
from the bank examiners declaring
these institutions sound.
"On the first day the banks opened
deposits increased by S1,00O0 900. They
have gone up ever since. This is the
way to tackle the problem No one
can sit here or in Chicago and solve
the situation"