Evening star., 1933-10-01
MILLIONS IN CREDIT
READY FOR TRADE
Bruere Named to Coordinate
U. S. Relief of Capital
Lacking Industry.
BY the Associated Press.

By the Associated Press.
Millions of dollars In loans were
promised yesterday by the Reconstruc-
ton Finance Corporation to .enable
business establishments handicapped by
inadequate working capital to live up
to the N. r. A. requirements.
This program was announced as in
formed circles looked for other i'm
! portant developments within the next
few days in the administrations effort
to release into the credit stream the
s., 900 ,00O, 900 held up in closed banks.
Meanwhile, President Roosevelt sum-
moned a veteran of the banking field
! Henry Bruere, president of the Bowery
Savings Bank Of New York-to under
take to coordinate the work of the
several Federal agencies involved In the
credit expansion program.
The r. F. c. planned to make its
loans through banks and ordinarily to
run for six months or less. 1t said,
however. that construction loans would
be permitted for three years.
Interest Rates Fixed.
Short-term money will be made avail
able to the banks at per cent interest
and they can charge per cent Long
term funds will be provided at per
cent and the banks can loan them at
not more than per cent.
The short-term funds must be used
for:
Purchase of materials for manufac-
ture.
Actual cost of labor in manufacture
and processing OF materials.
To aid merchants and others af-
fected by the National Recovery Ad-
ministration.
One of the moves expected by au-
thoritative sources in opening up the
closed banks Is q revaluation OF secur1-
ties held by them to bring them more
in line with their present worth.
When the bank holiday was declared
security values were at a low ebb, but
since then they have risen materially.
In addition, these sources expect an
easing Of the requirements OF the he
construction Finance Corporation Tor
purchasing preferred stock. At present
the corporation requires banks selling
it such stock to show that the securities
will earn or per cent.
Require General Sale.
In the case of reorganizations, the
equal amount Of common stock be SOLD
to depositors or the public.
The corporation has available more
than a billion dollars for straight loans.
Bruere. in assisting the campaign TO
assure capital that it Is safe to go
ahead and give N. r. A. industries
the credit they need. is coun.ed upon
to coordinate the work Of the fol-
lowing:
The Reconstruction Finance Ger
poration. which is attempting to stabll-
ize the banks by adding to their capt
tai structure.
The Home Owners Lean Corporation
and the Farm Credit Administration,
formed to take slow mortgage pape:
from the portfolios CT the banks ana
substitute their own bonds.
The Federal Deposit Guarantee Cor
poration. Just now engaged in an m
tensive drive to bring as many banks
| as possible under its protection When
| it starts functioning January l..
Other Agencies Involved.
Other Government establishments OF
| less important nature also are m
yolved, The purpose was explained to-
day as a move to see that all are pull
ing together toward the same objective
of economic recovery without dupilca-
ton of effort
Apace with disclosure Of the credit
plan. Senator Thomas, Democrat. OF
Oklahoma, in a formal statement laid
down a program for AN honest dollar
to end deflation and stabilize the DOL
lars buying power at 1925 levels
The Senator, leader in the campaign
for monetary expansion. asserted tnat
| development and announcement OF our
money policy is a prerequisite TO the
substantial return OF either domestic or
world prosperity" adding:
We've got to get our dollar down to
| where it serves us best and where 1t
ought to be and keep it there"
He approved the commodity. or man
aged dollar idea. asserting that he was
mot for a mill of imitation, but for