Evening star., 1938-02-19

- the Associated Press.
The administration made 81 SOC. 0.000..
600 available to business today fol
employment-producing loans as a part
Of its easy credit. non-infiationary re.
covery policy.
The sum was offered to industry
when President Roosevelt instructed
the Reconstruction Finance Corp. te
resume business lending. Except for
a few railroad loans, the r. F. c. had
ceased lending last October.
While Chairman Jesse H. Jones said
the R. F. c. had 5000 900 avail
able> he predicted only "a few hundred
millions" would be lent.
Meanwhile, the II Federal Reserve
Banks called business attention to
their continued ability to make direct
loans to industry. They also pointed
out that the lendable excess reserves
in the Nations commercial banks to-
tailed 81, ,360, ,000, 900.
Assurance Against Imitation.
While President Roosevelt in dis
cussing economic policy at press
conference yesterday talked at greatest
length en- his desire for balanced
price structure, some observers held
that of more importance to business
was his assurance that he was not
planning to initiate or revalue the dol
lar.
Those of this view said his state
ment amounted to saying the admins
tration would continue its presen
course, using only such mild recovery
levers as easy credit. the farm act
the r. F. c. and relief.
Wall Streets reaction was largely
along this line. Prices of stocks which
might have been most affected by
imitation dropped.
In his discussion, Mr.. Roosevelt dis.
played charts showing how prices ano
employment have gone up and dowr
| together in recent years. He urgec
a gradual increase in the price of mos
raw materials and some finished prod.
ucts which have declined sharply be.
cause they are sold on highly com.
petitive basis.
Some Prices TOO High"
He said some other prices-whicf
he did not name-were too high, ane
that antitrust action might be re.
sorted to if necessary to bring then
in balance with other quotations.
Pleading for stable wages, the Presi.
dent advised industry to cut prices
Of finished goods and thus increase
volume sales to a point where labor
cost per unit of output would decline
without cut in employees wage rates
Reasonable" Requirements.
I The r. F. c. loans will be made
through % branch Offices Throughout
the country on terms similar to those
prevailing before lending was curtailec
last fall.
Mr.. Jones said reasonable" col.
lateral requirements-so liberal, hi
said, that % per cent of outstanding
industrial loans are in default-woulc
be continued, and the interest rate
would remain at per cent, except
where small banks demand 6 per cent
| He urged business men to apply first
to local banks and offered to share the
loans with the banks If negotiated in
this manner or to give an option tt
take loans OF q banks hands whenever
desired Where banks cannot or will
not handle loans, the r. r. C. will lend
directly, ne said.
Speaker Bankhead Approves.
Congressional comment on the
Presidents price statement ranged
from approval to q remark that
''he's going up and down the ladder
rs usual"
Speaker Bankhesd sai1 he Ger
tainly approved" the Presidents
statements. which were based in part
on information supplied by cabinet
officers and others. His only regret,
he said. was that the cabinet men,
see BUSINESS, Page A-s)