The Waterbury Democrat., 1932-05-20
BIG FINANCIERS { MAKE PLANS TO
 EXTEND CREDIT
Powerful Coalition, Head. ed By Owen D. Young, Will Spend Millions in Cash and Billions in Credit to Aid Little Eel. lows


 New York. May 20.--(UP)--A powerful coalition of financicrs plans to put to work Ut once mill lions in cash or almost three bll- lions in credit in places not yet reached by the Rec0nstrucuon F- nance corporation or &'ederal Re. serve Credit expansion program.
 This will mean, if plans are suc- cessful, financial relief for small borrowers in sections of the coun- try far removed from New York city. Banks in-these far sections have used funds released to them to build up their own cash reserves instead of increasing loans to needy industries. home owners or farmers.
 The formation Of the com mittee headed by Owen D. Young followed demands in many sections of hte country for speeding up tho credit expansion program, for drastic means of boosting prices. for speedy distribution of piled up idle funds in New York and cri- ticism that financial leaders were taking care of the Big fellows'
 While members of the commit. tee of 1a would not comment on their plans. because they were not complete, 1t was indicated that cre- dit for building and loan societies and farm loan banks would be ar- ranged This would take care of the little fellows" not reached by the larger Metropolitan banks.
 Criticism, in which at least one aa.. Co fA. ap atAAntiai nntnf~ nation participated. had been di- rected at federal efforts to-. help these small farmers and homo owners, and smaller industries in the rural districts. The Recon struction Finance corporation, it was claimed, was helping only the financial interests and large in- dustrics. z"
 The criticism was denied by bankers who pointed to the fact that most loans to banks had been made to banks in rural communi- ties, not to banks In New York and Chicago. However. 1t developed, the banIss in tho smaller communi- ties, fearing runs, had built up their cash reserves with the new funds Instead of relending them to borrowers.
 The federal reserve system then stepped into tho picture with m at- tempt to remedy the situation. It bought government, securities in the open market. This released cash to banks, giving the banks still another large sum with which they could extend credit to small industries and small borrowers.
 Still the banks failed to ex- pand their credit facilities, figures quoted indicated. And now. it ls indicated, the large bankers them- selves have formed their commit tee to coordinate efforts of the faeco nstructofn Finance corporation and Federal Reserve. system to help the small borrower the credit ex- pansion plans were intended to help. ea.
 OwengD. Young, General Electric com pany, chairman. L. e. .
 Mortimer N. Buckner. New York Trust compnny; Floyd l.. Carlisle, Consolidated. Gas Co; Walter 5. Clifford, American Telephone md Telegraph Co; Charles E. Mitchell, National, City, bank; William c. Potetr, Guaranty Trust Co: Jack. son Ic. Reynolds. First Nntolnal bank; Alfred r, Sloan, Jr, General Motors; Walter c. Tcaglc. standard OH Go, New Jersey; A. A. Tilney, Bankers Trust Co; Albert II. Wig gin, Chase National bank; Clar- enco II. Woolley, American Radi- ator Co. g.
 The group was called together by George l.. Harrison. governor of the Federal Reserve bank Of New York,