Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-26

ommend to you the creation of a CEN
trail committee. The function of this
committee is to act as a central point
of contact in those matters regarding
cooperation between the various
agencies and the committees. In ad-
dition, it can be of assistance to volun-
tary committees formed for the pur-
pose of carrying out definite under
taktngs. For example, at our first
meeting Mr.. A. w. Robertson suggested
that some Of the strong industries of
the country as part of a general move
ment in the interest of increased en-
ployment and possible stimulation of
business activity might find it advan-
tageous to make capital expenditures
postponed up to the present time be-
cause of existing financial conditions
and including the replacement of worn
out equipment or the substitution of
modern equipment for that which had
grown obSoleScent
He stated that he was prepared to
approach other industrial leaders with
view to the development of such
program and the organization of COM
mittee. His idea met with the approval
OF all OF us. He has lost no time in
carrying 1t out and at the meeting yes
terday reported real progress. I think
that this general group will be glad to
hear from him later in the Gay. What
can be accomplished along these lines
is indicated by the statement of Mr.
Myron Taylor. made on Wednesday
morning on behalf of the United States
Steel Corporation.
1t must be apparent that in the car
rylng forward of such a program not
only can central committee be help
full in enlisting support, but the chair
men and members of the individual
service in establishing contacts and in
promoting the work of organization.
Other Activities Listed.
Other lines of endeavor which the
banking and industrial chairmen had
presented to them yesterday and which
it believes are worthy of consideration
are as follows:
l. The problem of making available
credit affirmatively useful to business.
2. To increase employment by the
railroads and stimulation of industry
through expansion of maintenance of
equipment and purchase of new equip
ment in cooperation with the Inter-
state Commerce Commission and the
Reconstruction Finance Corporation.
g. Increased employment through the
sharing of work
4. The stimulation Of the repair and
improvement of home movement.
5. Assistance to home owners with
maturing mortgages.
s. Active cooperation Of all banking
and industrial committees with Recon-
struction Finance Corporation in work.
ing out the problems incident to the
making of self-liquidating loans for
public and semi-public projects, and for
slum clearance and housing projects as
provided in the emergency relief act;
in the aiding of live stock loans by the
Reconstruction Finance Corporation and
agricultural credit corporations; in as
sisting the establishment of agricul-
tural credit corporations provided for
in the relief act, and in facilitating the
adequate functioning of the new home
loan banks.
Since the initiation Of informal dis
cussions real progress has been maze
and some of the programs discussed are
already we'll under way. For instance,
our efforts definitely contributed to the
creation of the Commodity Finance
Corporation, to the capital expenditure
movement which Mr.. Robertson has
under way, to bringing the question OF
increased employment and stimulation
of industrial activity by the expansion
of maintenance work and the purchase
of new equipment to the attention of
the railroad executives, the Interstate
Commerce Commission and Reconstruc-
ton Finance Corporation and to the
development of a plan which would
make this feasible. Already with the
cooperation of the New York Banking
and Industrial Committee the American
Securities Corporation had come into
, being. which made a real contribution
at time when there was no real mar
ket for bonds and where sound securi-
ties were being offered at destructive
prices.
A Cooperating Organization.
In order to avoid any possible mis-
conception, let me conclude by stating
that we are not setting up an economic
council to endeavor to direct the eco
| nomic policies of the country. We are
creating a central organization for the
purpose Of contact and cooperation to
assist in the task to be performed by
the Reconstruction Finance Corpo-
, ration. Federal Reserve Banking Sys-
tenn, the home loan banks, the Bank
ing and Industrial Committees and
| such voluntary groups as may associate
| themselves with the latter with a view
to developing helpful steps looking to
| gradual economic rehabilitation and
! more Immediately an increase in en-
ployment. The usefulness of the Gen.
| trail Committee will depend in large
measure on the degree to which you
gentleman turn to it for cooperation
and for the interchange of ideas. Aside
from the work to be carried on by the
Government agencies, the major part
of the task and the real field for use
fitness of the Banking and industrial
Committees is in developing means and
methods for solving the problems aris-
! ing in their own districts. This meeting
will have fulfilled major purpose il
each of you carries away with him a
more complete understanding of the
agencies that are available for the work
of rehabilitation, the fields in which
they can cooperate and the knowledge
| that you business men have available
| in your own districts voluntary organi-
cations of cooperation and contact
which, in turn, will now furnish you
with a channel through which what
may in the first instance be a purely
local program can be developed into
one national in scope.
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