Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-18
Majority Sentiment Favors
Federal Money Corporation

With some few exceptions, press COM
mentS approve as a means of giving
greater elasticity to the business Of the
country the Reconstruction Finance
Corporation, provided by one of the
measures on which President Hoover
has urged speed by Congress. 1t is held
by the more optimistic that the exist
ence of such provisions in itself gives
confidence, but mild criticism is based
On objections to Government control or
a feeling that the tariff should be con-
sidered as preliminary step.
Referring to. the measure as a re-
spouse to public demand, the Harris
burg Telegraph Republican, states !:
LAS Mr.. Hoover has pointed out, it is
needed to support enterprise tempo
rarily embarrassed in the emergency,
as. for example, companies with bond is
sues falling due that ordinarily would be
refinanced as a matter Of mere routine,
but which are in difficulties ewing to
the present decentralization of the bond
market. knowledge that such a means
of reflnancing was ready at hand of
itself would do much to restore conf
dence and stabilize credit"
Describing the Reconstruction Cor
poration as the key measure In the
general plan of constructive relief" the
Pasadena Star News Republican, holds
that action by Congress should help
greatly in restoring general confidence
throughout the country and in assist
ing to restore normal conditions"
1T seems to be agreed by the leaders
of business, finance and industry" says
the Akron Beacon-Journal Gndepen-
dent Republican,, that such a COR
poration would be able to put into
effect measures which would overcome
some of the influences which contribute
to depression. Included in these inf1u-
ences are panic fear, boarding, lack of
confidence and the drying up of credit
resources. The set-up proposed for the
corporation would have the added merit
Of not plunging the Government into
debt. Such securities as it would issue
would be purchased in large measure by
the very money which has been with
drawn from circulation by its fright
ened owners, thus thaWing the frozen
stream of credit at its source"
X i; s.
Quoting Eugene Meyer, governor of
the Federal Reserve Board, as "deScrib-
ing the proposed institution as NOV
able fortress not merely for defense,
but mobile for offenSe In the war
against the forces of depression" the
Roanoke Times CDemocratic) adds "A
FUNDAMENTAL lued entertained by Inc
sponsors of the measure Is that the
administrators Of 1t should be able to
pick out certain key spots in the ma
tional business structure, the stimula-
ton Of which would tend to turn the
tide for all The reliance on the eff
cacy of the measure when in operation
is very great"
With the suggestion that combating
a depression is, as the President states,
like fighting a war" and one which lis
not battle on a single front but upon
many fronts" the Manchester Union
independently comments: All the
measures recommended, including, in
addition to creation of the Finance Cor
poration, the strengthening of the Fed
eral Land Bank system, the creation of
a system of home loan discount banks,
the liheralizing of the discount facili-
ties Of the Federal Reserve banks, and
revision Of the laws relating to trans
portation, dovetail together. No less
important Is the prompt adoption of
adequate measures for budget relief.
1t Is not incorrect to say that the con-
fidence of the public is built upon the
anticipated efficiency of this program
to meet the present situation"
There are present in this country"