Evening star., 1933-09-12
RATIONAL INITIATION.
ASKED BY HARRISON.
Senator Warns Roosevelt
Increase in Commodity
Prices Is Vital.
By the Associated Press.

By the Associated Press.
President Roosevelt interrupted his
conferences on finances today to re-
ceiye an urgent recommendation from
Chairman Harrison of the Senate
Finance Committee for rational infla-
ton"
Commodity prices have got to go up"
Senator Harrison said. II favor some
form Of rational imitation We have got
to do more than we are doing. This will
help the bankers and the farmers and
the latter are the ones who really need
help Just now"
The finance chairman declined to
discuss at all what President Roosevelt
indicated in their lengthy conference.
The President summoned his Re-
covery Council to meet this afternoon
following a long session yesterday with
his chief financial advisers.
New Steps in Prospect.
New steps to aid the rise in prices
and to provide credit for the N. R. A.
members appear in prospect.
Before going into the session Of the
Recovery Council, Mr.. Roosevelt re-
ceived F.. M. Law, the new president
of the American Bankers Association.
Law went to the White House with
Jesse Jones, chairman of the Recon-
struction Corporation, who was men,
Der of yesterdays White House parley.
The President yesterday inspected"
the Governments large credit agencies
In lengthy conference.
No announcement of the outcome was
made after the President spent three
outlet Of the billions of Federal credit
avo i1ah1p for tho COUNTRY
There we're indications, however, that
Mr.. Roosevelt desired to see that these
various agencies function together for
the common end of aiding industry and
agriculture to meet the demands of the
recovery campaign.
The President and his aides have
shown realization Of the difficulties
met by small merchants in endeavoring
to carry out the N. r. A. working agree
ments without immediate credit.
Black and Jones Differ.
The Government leaders appeared
convinced that the banks would meet
the situation.
Eugene Black, governor Of the Fed
eral Reserve Board, expressed the
banks were meeting this situation and
would continue to do so. He said they
were demading adequate security, but
that is simply sound banking"
Jones thought the banks could go
little stronger. He reiterated his offer
to buy $1,000 900 600 in preferred stock
Of the banks to re-enforce the structure.
Those attending the conference said
the credit problem was simply one Of
several discussed and indicated it was
not particularly emphasized. The con-
ferees said the word imitation was not
mentioned as such.
Mortgage Firms Suggested.
Others in the meeting included Dean
Acheson. Acting Secretary of the Treas
ury; Henry Morgenthau, jr, the gov
ernor Of the Farm Credit Administra-
ton; Frank c. Walker, secretary of the
executive council; j. F. T. O'Connor,
the controller Of the currency. and Wal
ter Cummings and E. G. Bennett, the
two newly appointed members of the
Bank Deposit Insurance Corporation.
Jones also suggested that the N. r. A.
members form mortgage companies as
a means Of getting direct loans from
the Reconstruction Corporation when
their security was not adequate for
straight out bank loans
1T is the little fellow that needs
help" he said land he is not getting
1t in many instances. The bankers
have got to get back to old-fashioned
methods-building up their customers,
loaning on character as we'll as secur-
ity The bankers can do a great deal
If they are willing to cooperate, trust
and take a reasonable chance"
The September financing Of the
Treasury also was discussed.