The midland journal. (Rising Sun, Md.) 1885-1947, 1933-10-13

of credit and for the
reOpening of closed
banks, thereby freeing several billions
Of dollars represented by the frozen
assets of those institutions. Secre-
tary Of the Treasury Woodin, not yet
recovered wholly from his late illness,
was one of the conferees; the others
were Secretary of Agriculture Wal
lace, Attorney General Cummings, Gov.
Eugene Black Of the federal reserve
board, Lewis w. Douglas, director of
the budget; Jesse 81. Jones, chairman
of the Reconstruction Finance corpora
ton; Walter j. Cummings. conserva-
tor of closed banks, and J. f. T.
O'Connor, controller Of the currency.
Following the conference the Presi-
dent took train for his Hyde Park
home. and on the train he had long
talk with Prof. James FL. Rogers, Yale
economist. Rogers then returned to
Washington and discussed financial
matters with Douglas and others.
This led to the report that some
change involving the purchasing power
Of the dollar was imminent, but dis
patches from Hyde Park said no an
nouncement on monetary policy was
forthcoming yet.
Senator Thomas of Oklahoma an
nounced that several groups working
with him for imitation had decided to
suspend their campaign for the mo-
ment to permit trial of the credit ex-
pansion program proposed by Presi-
dent Roosevelt.
It was stated with authority that
the President hopes to get large
proportion of the 5000 closed banks
reopened before January 1, when the
deposit insurance system goes into
effect. In order to qualify for deposit
insurance, banks must be liquid. Thou
sands of the closed banks, the Presi-
dent is advised, are solvent but not
sufficiently liquid to meet the require
ments for reopening. To make them
liquid. additional capital must be pro-
vided. To the extent such additional
capital is not furnished by the COM
munities in which the banks are situ-
ated it will be supplied by the R. F.
c., through purchase of preferred
stock in the institutions, according to
the plan approved at the White House
conference.
CTEEL manufacturers, under the
- urging of President Roosevelt and
Joseph B. Eastman, co-ordinator Of
transportation, have agreed to competi-
tive bidding for the sale of rails to the
railways, and Mr.. Eastman announced
that 100000 tons of rails will be
bought as soon as financial arrange
ments can be made. If the bids Of
the steel companies show that reduc-
lions in the price have been made, the
money will be loaned to the railroads
direct from public works funds.
Competitive bidding and bottom
prices, it was hoped by Mr.. Roosevelt
and Mr.. Eastman, also would result in
the purchase by the railroads of guam
titles of rolling stock and equipment,
which deals, too, would be financed by
the government. Loans for buying
rails, it was said. may run to some
$25,000.O00. Equipment loans may sur
pass that amount.
Reports of railroad business are en-
couraging. The first 81 railroads re-
porting August business, had total
net operating income of SOL 1854, 900,
approximately double that of the pre-
ceding August. A year ago the figure
for the same number of carriers was
$25,S10,0O0, the increase amounting to
97.S per cent.
The net operating income of these
carriers in July totaled $53, 1904, 900, an
Increase Of S41 per cent over July,
1882. Gross revenues of the 81 car
riers in August amounted to $247. $780,
600, compared with 43,800OO0 in
July and $210.132,O00 in August last
year.
MANY Of our large cities are in
Iva desperate financial straits and
have been looking to the public works
administration for salvation. There
has been much criticism of the slow
ness with which the $1,750 100000 of
federal money allocated for municipal
and state projects is being handed out
by Secretary of the Interior Ickes, the
administrator. But Mr.. Ickes met the
mayors of IS cities at the Chicago
Worlds fair and let them know
plainly that the cities themselves were
at fault.
ut is now largely in the hands OF
the mayors Of our cities to determine
whether the public works program
win fully serve its purpose in aiding
in the economic recovery Of the coun'
try" said Secretary Ickes In his ad'
dress. sour national treasury ID
waiting to be drawn upon for hun
dreds Of millions of dollars for useful
public works.