Evening star., 1932-06-24
PROBE UNDER WAY
TOLEARN AMOUNT
OF BUILDING DUE
Financing of Work in Fifth
Federal Reserve District
Scrutinized by Group.
WORK FOR UNEMPLOYED
is SEEN IN FINDINGS
Banking and Industrial Committee
Holds All-Day Session at Riggs
National Bank.

Surveys are being made by the Bank
J ing and Industrial Committee of the
| fifth Federal Reserve district to deter
mine the Federal, State and city con-
struction projects pending in this dis
trict; to ascertain what steps must be
taken to get these projects under way
| and to learn the amount of employment
which they involve.
,, The committee is also surveying
larger private projects now pending.
Its findings already indicate that there
are sufficient projects contemplated 70
give employment to very substantial
number Of idle workers.
The Banking and Industrial Commit
tee held an all-day session at the Riggs
National Bank yesterday. This is the
Federal Reserve Bank. with a banker
and business man from each of the
flve States and the District of Columbia
as members. Edwin C. Graham of this
city was elected chairman. He pre-
sided at yesterdays meeting
Reports from Virginia and West Vir-
ginia, North and South Carolina, the
District of Columbia and Maryland
showed that intensive studies of funda-
mental trends and needs are already
well under way. The committee has
lost no time In attacking this important
program, started at the request of Presi-
dent Hoover.
Immigration on Credit Sought.
At yesterdays meeting the committee
also undertook to cover the whole fifth
Federal reserve district with a system
attic survey for the purpose of getting
definite and conclusive information as
to whether the extension of credit to
any sound bankable proposition had
been declined, and also what PROPOSE
tions, II any, of this sort could profitably
be initiated and financed.
Consideration was also given to the
question of extension Of maturing mort
cages and granting of loans by building
and loan associations, savings banks
and mortgage bankers. especially with
reference to the exercise of a broad dis
cretion by the lenders or holders In each
individual case.
The Banking and Industrial Commit
tee is strongly in favor of greater
leniency toward holders of mortgages
on homes when they are keeping up
their interest. but temporarily are un-
able to make reductions in the prin-
cipal. After thorough discussion, the
committee unanimously adopted the
following resolution:
Would Protect Mortgage Holders.
whereas, information received from
different sections indicates considerable
continued distress on account Of fore
closure OF maturing mortgages where
values and equities would seem to de-
mand a more considerable and liberal
attitude to worthy borrowers, and
whereas, the home owner, facing matur-
ing mortgage obligations under existing
conditions. who Is striving to meet his
or her obligations and has by past per-
formances substantially met interest
and tax payments, and who cannot at
present make curtailments, should have
fair consideration and opportunity to
retain such homes or mortgaged prop
erty.
Therefore, be 1t resolved, That It is
the unanimous opinion Of this Commit
tee that the several State Committees of
the fifth Federal Reserve district should
seek to establish local Advisory Com
mitteeS In their several communities,
composed of representatives of banks,
trust companies, mortgage companies,
building and loan associations and busi-
ness men, to give consideration, advice
ana actlon as may seem to such Ad-
visory Committees to be expedient.
Resolved further, That it is the
opinion OF this committee that these
local advisory committees should further
seek information as to the availability of
local commercial credits for lepitinate
bankable business enterprises.
Several Encouraging Factors.
In review Of the present situation,
the committee noted with satisfaction
certain constructive factors which rep
resent a distinct change from recent
trends: First, the cessation of the ex-
port Of gold from the United States:
second, an increase in bank deposits,
not only in the large centers, but over
a widespread territory; third. the re-
versal OF the price decline in many
commodities and the evidences of stabil-
lzatlon; fourth, the refusal of Congress
to embark on any unsound, inflationary
program.
These facts are indicative of changes
that are taking place in the economic
situation and should inspire a new con-
fldence that the forces Of reconstruction
are beginning to become effective"
The committee voted to meet again
in Washington within. 80 days upon
call OF Chairman Graham, and in the
interim representatives Of each State
were requested to push forward their
Investigations and to hold meetings of
their State group in order that the
committee for this district might
promptly reach its conclusion as to
ways and means by which business
conditions might be improved.
Committee Members Present.
Those in attendance at the meeting
were as follows:
Maryland-Charles M. Cohn. vice
president, Consolidated Gas, Electric
Light & Power Co., Baltimore.
Washington-Edwin C.. Graham
president, National Electrical Supply
Co.; Robert v. Fleming, president, Riggs
National Bank
Virginia-Robert p. Beaman. presi-
dent, Norfolk National Bank of Com
meree & Trust Norfolk, Va; C. Edwin
Michael, president, Virginia Bridge a.
Iron Co., Roanoke, Va; John Stewart
Bryan, president, Richmond News
Leader, Richmond, Va.
West Virginia-H B. Lewis, vice pres
ident, Kanawha Banking g. Trust Co.,
Charleston, w Va
North Carolina-H NJ. Victor, presi-
dent, Union National Bank, Charlotte,
N. c.; Charles A. Cannon, president,
Cannon Mills Co., Kannapolis, N. c.
South Carolina-A. L. NJ Virgins,
vice president. Bank of Hartsville,
Hartsville, S. c.. James C. Self, presi-
dent. Greenwood Cotton Mills Green
wood, s. C.
At yesterdays meeting were Hilleary
G.. Hoskinson, vice president Of the
Riggs National Bank, who Is committee
secretary, and W. w. Hoxton, chairman
Of the board of the Richmond Reserve