The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-08-26
r. o N T / N u E ID
~ from page one
Financial Crisis
Overcome Asserts
Hoover in Speech

and credit spoke to the meeting. in
Guiding such financial and business
leaders as Myron Taylor, of the steel
industry; Daniel willard, Of the rail-
road world: Edsel Ford, Detroit au-
| tomobile manufacturer; and Melvin
Traylor, Chicago banker.
Atlee Pomerene told Of the hopes
and purposes Of the gigantic recon-
struction finance corporation.
Franklin w. Fort. chairman of the
New Home Loan Banking board. ex-
planned this setup and announced the
decision Of comptroller Of the cur
rency Pole to order abandonment for
60 days Of all foreclosures by nation
al bank receivers.
1T Is not proposed" the president
had explained, Ito engage In artifi-
cialities. Nor is 1t proposed that you
attempt to settle here In a day great
economic problems Of the future. It
is simply proposed that you organize
for action In the problems immediate
ly before U.S."
Fort, speaking q little later, appeal
ed for support for the new home loan
banking system which he promised
would be a going function by October
IS with $l34 900 900 available for home
builders and owners.
Would Halt Foreclosures
There are two major evils which
can be attached at once" he said.
1.-THE first is the foreclosure of ex-
isting mortgages-sometim because
|of arrearages Of interest or taxes. but
quite as often because Of refusal to
renew or continue them. This con-
dition has been accentuated by the
tremendous number of receivershipS
Of banks and other lending institu-
lions.
MANY Of the receivers, in their
proper effort to pay dividends to de.
positors and creditors, have been de-
manding payment Of mortgages and
bringing foreclosure proceedings. The
reconstruction finance corporation
can loan to these receivers against
the mortgage funds with which to pay
depositors. Therefore. such foreclos-
ures must stop until the home loan
banks are functioning and pouring
Inew funds into the mortgage invest
ment field.
There are two types OF loans which
the public must have and which, II
made. will speed the general recovery.
Recovery from depression begins
when things wear out and must be
replaced or repaired Real estate re-
pairs to preserve the value of prop
erty will be the first help the build
ling industry can get. The funds
must be found"
Land Banks Have Money
Paul Bestor, commissioner of the
farm loan board, said the board had
been assured by the federal land
banks that they have ample funds for
loaning purposes and that 1t Is their
policy to accept all eligible and desir-
able loans offered through solvent
national farm loan associations.
He said the twelve federal land
banks had outstanding farm mortgage
loans Of $1.143.000.000 and called at
tention that the reconstruction fl
nance corporation was ready to loan
$50. ZOO, 900 to the banks If needed.
Eugene Meyer, governor Of the fed
eral reserve board, gave assurances
the federal reserve system stood ready
to meet the needs Of American COM
merce. industry. and agriculture.
Meyer said the federal reserve sys-
tenn. through the Glass-Steagall bill,
had been able to meet the situation
caused by contracted credit and that
this legislation had been vital factor
in easing conditions in American
banking circles.
He recalled that the bill made gov
eminent bonds eligible for rediscount
purposes and in that way the situa-
ton brought about by the outflow Of
gold to foreign countries and the
| boarding in this country was met.