Evening Star Newspaper, October 7, 1931, Page 4

i’ A4 %R SRR HOOVER SUPPORTED IN PLAN FOR CREDIT $500,000,000 Corporation to Supply Cash to Banks Proposed. (Continued From First Page) of calling a special session of the Con- press. it was sald today. The President’s proposals, in the cemment of Senators and Representa- tives who attended the conference to- day, were declared not only timely, but constructive. ‘This was true of the Democratic comment as well as of the Republican. Democrats sttending the conference last night were helpful, it was declared, in the discussion of the President’s plan. Drops Debt Suggestion. While the President’s proposals for meeting the banking situation in this country in the present crisis met gen- eral approval. his declaration that he intended to discuss with Premier Laval of Prance during his approaching visit to Washington future steps that may be imperative in connection with inter- governmental debts if the world-wide depression continues. brought state- ments to the eflect that it would be wiser to wait and see if any steps were necessary and whether Europe showed a disposition to make the best use of the debt suspension for a single year, which has already been agreed to under the leadership of President Hoover. 1f the President at any time consid- ered the advisability of obtaining from his conference with the legislators last night approval of his plan to go into this matter with Premier Laval it was abandoned, and he plans to go ahead with this matter on his own respon- =ibility. Senator Borah of Idaho. chair- man of the Foreign Relations Commit- tee, and Senator Vandenberg, both f the President's own party. take the position that this is not the time to pledge the Legislature to an extension of the debt holiday. and Representative Garner. was emphatic in his stand on the matter. The three legislative proposals for which early action by Congress is now urged upon the President are the lib- eralization of the eligibllity of banking assets for rediscount under the Federal Reserve system: the furnishing of further capital by the Government io the Federal land banks. and the sef ting up of an organization similar to the War Finance Corporation, if neces gary, to reinforce the $500.000.000 vol- untary revolving fund which President Hoover has proposed to the banks themselves. Vandenberg's Statement. Senator Vandenberg said of the Pres- ident’s program to stabilize bahkng: This is a magnificent program of aid and reassurance to the banking and credit situation of the country. It is a challenge to the courage and confidence of America. There is no more room for banking suspicion or credit fears in clear minds. The two voluntary move- ments to mobilize banking resources for emergency defense will immediately | create a tremendous new balance. The | three legislative proposals contemplate an almost unlimited reservoir of Gov- ernment support for legitimate credit values. While they have the approval of the bipartisan congressional confer- ence only in principle and while the legislative details remain to be perfected, yet the fine spirit of co-operation with| Wwhich the program is born gives every citizen a right to new confidence and solid hope. The bank and credit sit- uation is absolutely fundamental to all other problems. “Personally, I have been convinced for some time and have been urging that & legitimate expansion in the Fed- eral Reserve rediscount privilege would largely stabilize our banking and credit situation and unfreeze the country. This now is in sight in some acceptable form and a great deal more. It ought to be the dawn of a new day for those who believe in America. Should Meet Need. “The further war debt discussion is too nebulous for present comment. I am opposed to cancellation, although I support the one-vear moratorium. But further lenience. except in emer- gency, which may involve us in reflex menace, can await the subsequent day if and when there is sound American | value received for subsequent changes.| “The new voluntary banking organi- | zation and the promise of early legis- lative supplement should wholly suffice our contemporary need. But to make assurance doubly sure, I continue to favor a special session of Congress to hasten its official finality. “I also favor new postal savings regu- lations which will qualify other than} Government bonds as security for these | funds when redeposited in local banks. “1 wish, meanwhile, the New York Stock exchange voluntarily would give us a two months’ trial of a ban on short sales of securities. We need a labora- tory test of this highly controversial idea, and we need it now. Voluntary action is far better than legislation when the latter can be avoided.” Partisanship Is Absent. Representative Robert, Luce of Xassa- chusetts, a member of the House Bank- ing and Currency Committee, said: “The all-important result of the con- ference was the indorsement of the President’s program in_the matter of banking legislation. The conference developed complete unanimity of resolve that all the power of the Federal Gov- ernment shall be used to support the banking structure of the country. With complete absence of partisanship, it was agreed that everything possiple to ac-, complish by way of legislation in the way of relieving the credit situation shall be done as quickly as possible after Congress convenes. “This should put an end at once to any fear on the part of those who have deposits in our banks. It should be understood that politics play no part in the work of the banking and currency committees of the House and Senate. Its members differ only as judgments of financial expedience vary. In both comrhittees the conservative clements predominate. They have been re- luctant to make serious changes in the banking laws. “The present situation, however, dis- closes imperative need for removing some of the impediments now in the way of the most effective use of thé credit resources of the country, and for one I feel perfectly sure that these obstacles will be taken out of the way just as soon as legislative machinery permits. Borrowing to Be Easier. “The changes will chiefly concern two phases of our banking structure. .To put it in a non-technical way, one of these changes will make borrowing on sound securities easier. I am sure, however, that there \Wwill be no going beyond sound securities. The other will make it possible for the Farm Loan Banks to sell their bonds and thus get funds to lend to farmers who, though perfectly sol- vent, are for fhe moment unable to get the money with which to tide them over the present emergency.” Representative Isaac Bachrach of New Jersey, a Republican member of the House Ways and Means Commit- tee, after declaring the President’s pro- gram constructive, added: “If I were to make a criticism, I ‘would propose a billion-dollar revolving fund on the part of the banks for financing banks with frozen assets, in- stead of a half-billion-dollar fund.” Legislation Was Foreseen. Represenative Garner said that while the Democrats attending the White ess would have introduced bills in he coming session to carry out the identical purposes. Mr. Garner was one of the few mem bers of Congress consulted by the Pre ident before he entered upon negotia- tiops last June for a year’s holiday of intergovernment debts, who declined to give his approval of the plan at the time. He reiterated his opposition to the debt suspension today and indicated that he would have something to say about it when Congress convenes. It seems clear he intends to make the sus- pension appear a step toward the can- cellation of the debts owed this coun- try by foreign nations, growing out of the World War. “The moratorium,” said Mr. Garner, “is a step toward cancellation of the war debts. I am opposed to can tion and always have been and al will be. Some of these international bankers who have sunk $10,000,000,000 in Europe want the debts canceled in order tn strengthen their loans in Eu- ropean countries at the expense of the American taxpayers.” Call Step Constructive. Senator Carey of Wyoming, Repub- lean, said: “I think the action of the President in announcing his plan and calling cer- tain members of Congress into con: ence is the most constructive step that has been taken in a difficult and criti- cal situation. The trouble today in the country is pot lack of capital, but lack of confidence. The President’s state- ment should restore confidence through advising the people that the President is determined to do everything possible to relieve the situation.” He added that while there may be differences over the form the legislation shall take, Congress will put it through promptly after it meets. Senator Couzens of Michigan in De- troit expressed his approval of the President’s plan, saying: “I am exceedingly pleased to see President Hoover has so clearly recog- nized a very dangerous and unhappy condition existing among many of our smaller banks. I congratulate him on his energtic start to relieve this situ- ation.” o8- SIX POINTS IN PROGRAM. Hoover's Proposal Wins Approval of Political Leaders at Conference. A momentous six-point_program for marzhalling the Nation's latent buving power into commercial channels today was laid before the American people with the unified indorsement of Pres- ident Hoover and political captains. It included liberalization of the Gov- ernment’s own rediscount restrictions to permit acceptance of certain classes of industrial securities now ineligible; creation of & $500,000,000 corporation by private bankers io handle frozen paper of insolvent banks and supply; some cash soon to hard-pressed depor- | ors, and expansion of the Federal land | ! bank system to provide more adequate credit accommodations for agriculture. | Placcd before a_colorful bipartisan | conference of congressional leaders Jast night at the White House, the admin-| istration’s domestic plan won their support in principle. While congres- sional action will be required eventually to carry the program to completion, no special session is contemplated. Blames “Foolish Alarm.” The President failed, however, to gain sanction to discuss with Premier Laval of France, on the latter's visit to Wash- | ington this month, extension beyond next June of the intergovernmental debt suspension. In one of the flurries of opposition which gave the Chief Ex- | ecutive an insight into congressional floor debate, he was told that any dis- ! cussions of this kind with the French; premier would be on his own respon- sibility. Full support of the people for the program was asked by Mr. Hoover. In making public, after midpight., the proposals which-had brought the Dem- | ocratic and Republican leaders hurry- | ing from all parts of the country, he said “foolish alarm” was delaying the return of better times. “The proclamation of the depression | by the succession of events in Europe.” he said. “affecting as they have both commodity and security prices. has pro- | duced in some localities in the United | States an apprehension wholly unlustl-l fied in view of the' thousandfold re- sources which we have for meeting any | demand. Must Dispel Doubts. THE EVENING STAR, WASHINGTON, D. C, WEDNESDAY, OCTOBER 7, 1931. - Text of Hoover’s Plan Mobilization of Country’s Banking Resources to Pool Half Billion Rediscount Fund Proposed as Means of Relieving Depression. BY the Associated Press. The text of the statement made by President Hoover early this morning follows: “The prolcngation of the depression by the succession of events in Europe, affecting as they have both commodity and security prices, has produced in some localities in the United States an apprehension wholly unjustified in view of the thousand-fcid resources we have for meeting any demand. “Foolish alarm in these sections has been accompanied by wholly unjustifi- able withdrawal of currency from the | | Several of the districts have already ! banks. “Such action results in limiting the ability of the banks in these localities to extend credit to business men and farmers for the normal ccnduct of busi- ness, but beyond this to be prepared to meet the possibility of unreasoning deman of depositors the banks are compe! to place their assets in liquid form by sales of securities and restric- tion of credits so #s to enable them to mect unnecessary and unjustified drains. This affects banking further afield. Business- Hard Hit. “It is unnecessary to specify the un fortunate consequences of such, a situ- ation in the districts affected both in its further effect on national prices of | agricultural products, upon securities and upon the normal conduct of bus ness and employment of labor. “It is a deflationary factor and definite impediment to agricultural and | business recovery. “There is no justification for any such situation in view of the strength of our banking system, and the strong position of our Federal Reserve system. | is a diffusion of re- Our difficulty sources and the primary need is to mobilize them in such a way as to re- | in a number of localities the | confidence of the banker in his ability | store to continue normal business and to dispel any conceivable doubt in the mind of those who do bpusiness with him. Outlines Program. “In’ order to deal with this wholly abnormal situation and to bring about an early restoration of confidence, unity of action on the part of our bankers and co-operative action on the part of the Government is essentia re- fore. I propose the following definite program of action. to which 1 ask our citizens to give their full co-operation: “1. To mobilize the banking resources of the country to meet these conditions 1 request the bankers of the Nation to form a national institution of at least $500,000,000. The purpose of this insti- | tutign to be the rediscount of banking ass not now eligible for rediscount at the Pederal Reserve banks in order to assure our banks, being sound, that they may attain liquidity in case of necessity. and thereby enable them to continue their business without the restriction of credits of the sacrifice of their assets. “1 have submitted my proposal to the leading bankers of New York. “'I have been advised by them that it will receive their support. and that at my request they will assume the leader- ship in the formation of such an or- anization. The members of the New ork City Clearing House Association | have unanimously agreed to contribute their share by pledging $150.000,000. which is 2 per cent of their net demand and time deposits. Assured of Support. “I have been assured from other large centers, as far as I have been able to reach, of their support also. I consider that it is in the national interest, in- cluding the interest of all individual banks and depositors, that all the banks of the‘country should support. this move- ment to their full responsibility. “It is & movement of national assur- ance and of unity of action in an Amer- ican way to assist business, employment and agriculture. governors of the Federal Reserve Banks the conduct of | On Scptember 8 T requested the | to endeavor to secure the tion of the bankers of their territory to make some advances on the security of the assets of closed banks or to take over some of these assets in order that the recelvers of those banks may pay some dividends to their depositors in advance of what would otherwise be the case pending liquidation. “Such a measure will contribute io free many business activities and to re- lieve many families frcm hardship over the forthcoming Winter, and in a meas- ure reverse the process of deflation involved in the tying up of deposits. ! made_considerable progress to this end, and I request that it should be taken up vigorcusly as a community respons sibllity. Suggests Committees. “3. In order that the aboye program of unification and solidarity of action | may be carried out and that all parts | of the country be enlisted, I request the governcrs of the Federal Reserve Banks in each district to secure the appoint- ment of working committees of bankers for each reserve district to co-operate with the New York group 2nd in carry- ing out the cther activities which I have mentioned. “4, 1 shall propose to the Congress that the eligibility provisions of the Fed- eral Reserve act should be broadened | in crder to give greater liquidity to the assels of the banks, and thus a greater assurance to the bankers in the grant- ing of credils by enabling them to obtain legitimate accommodation on | sound security in times of stress. Such measures are already under consider- ation by the Senate Committee Upon Currency and Banking. “5. Purthermore, if necessity re- quires, I will recommend the creation of a finance corporation similar in character and purpose to the War Finance Corporation, with available funds suficient for any legitimate call | in support of credit. Would Strengthen Banks. “g. T shall recommend to Congress |the subscription of further capital | stock by the Government to the Federal land banks (as was done at their founding) to strengthen their resources so that on the one hand the farmer may be assured of such accommodation as the may require and on the other hand their credit may be of such high character that they may obtain their funds at low rates of interest. “7. 1 have submitted the above men- tioned proposals which require legisla- tion to the members of Congress whose attendance I was able to secure on short notice at last evening’s meeting— being largely the members of commi tees particularly concerned—and th approve of them in principle. “8. Premier Laval of France is vis- iting the United States. It is my pur- pose to discuss with him the question of such further &rrangements as are imperative during the period of the depression in respect to intergovern- | mental debts. The policy of the Amer- ican Government in this matter is well known and was set out by me in a public st#tement on June 20 in a nouncing the American J)ropouf for a year's postponement of debt payments. Adjustment Is Problem. “Our’ problem in this respect is one of such adjustment during the period of depression as will at the same time |aid our own and world recovery. This | being & subject first of negotiation with | foreign governments was not submitted for determination at last evening's con- ference. “9. The times call for unity of ac- tion on the part of our people. We have met with great difficulties not of our own making. It requires determin- ation to overcome these difficulties and above all to restore and maintain confl- dence. Our peopie owe it not only to themselves and in their own interest, but they can, by such an example of stability and purpose. give hope and confidence in our own country and to the rest of the world!"” “Foolish alarm in these sections has ! been accompanied by wholly unjusti- | flable withdrawal of currency from the | banks * * ¢ “There is no justification for any such situation in View of the strength | sources and the primary need is to| mobilize them in such a way as to re- | store in a number of localities the con- | dence of the banker in his ability to | continue normal business and to dispel | any conceivable doubt in the mind of | those who do business with him.” Following closely his conference with | the congressional pilots and more in- | tensive discussion with private finan- cial leaders, which have occupied him | for days, the President called together | today a group of representative real estate men and bankers for further conferenices at the White House. He won approval for his immediate relief program last night amid a set- ting the character of which has been seldom seen in America: Four Advisers Present. This unusual grouping of the legis- lative and administrative’ branches of the Government in a common cause agreed to support, in addition to the three major points, appointment of re- gional bankers' committees to aid gen- erally in credit expansion: liquidation of some of the frozen assets of insolvent banks, and other institutions; and, if necessary, creation of a Government agency similar to the old War Finance Cerporation which operated during the emergency period to encourage domestic industry. At the door of his study—in the room where ‘Abraham Lincoln signed _the Emancipation Proclamation—Mr. Hoo- ver quietly received the 32 Senators and Representatives whom he had sum- moned. Most of them serve on com- mittees dealing with the questions in- volved. . About the President were four of his own administrative advisers. They were Secretary Mellon, Undersecretary Mills of the Treasury, Gov. Meyer of the Fed-. cral Reserve Board, and Walter Newton, one of his own secretaries. Borah and Garner Speak. As the President completed reading deliberately his prepared proposals, de- bate broke out over the proposed dh-! cussion of the debt suspension with Premier Laval. It was challenged b_vl Chairman Borah of the Senate Foreign Relations Committee and Representa- tive Garner, the Democratic leader of the House. When the debate, with bitterness lacking and humor occasionally inject- ing itself into the serious discussions, ranged to the economic proposals, party. lines were dissipated. Democrat chal- lenged Democrat and members’ of the Chief Executive’s own party asked for further details upon the- ramiifications’ of the proposals. Senator Glass of Virginia, a former Democratic Secretary of the Treasury, recailed that suggestions that the Re- serve svstem be permitted to expand the base of discountable securities were now under consideration by the Senate Banking Committee. Support from both parties came to Representative Luce of Massachusetts his insistence that the group similar to the War Finance Corporation be set up only if “necessary.” $150,000,000 Subscribed. As the debate spread, President Hoo- ver was joined by Secretary Mellon and his other personal advisers in meeting questions with which they were fa- miliar. For the private corporation which i ceeding York City Clearing House Association. The Chief Executive said he had last month requested the governors of the Federal Reserve banks to secure the co- operation of bankers in their territory of our banking system, and the strong | to make some advances on the security | position of our Federal Reserve System. | of the assets of closed banks. He sought | “Our difficulty is a diffusion of re- | to have these institutions take over some | of these assets in order that the re- ceivers may pay some dividends to their depositors in advance of what would otherwise be the case pending liquidation. Supplementing this appeal made on September 8, Mr. Hoover expects the proposed $500,000,000 agency soon to begin turning these frozen banking as- sets into cash for trade channels. Representative Garner explained after | the meeting that the setting up of this | agency would require no legislation. The Democrats stipulated in agreeing in principle to reorganization of the War Finance Corporation that the step be | taken only in event bankers failed to subscribe fully to the private agency. Secretary Mellon indicated confidence, however,, that the half-billion-dollar fund would be raised. Just as the White House clocks were about to strike the midnight hour, Sen- ator Swanson, a Virginia Democrat, suggested an adjournment and the weary legislators—some of whom had traveled all day—filed, smiling, out of the White House to be engulfed by a crowd of newspaper men and photogra- phers. MORTGAGE COMPANY HEADS ARE INDICTED Four Men Face Trial in Cleveland | After Federal Charges Are Dropped. By the Associated Press. CLEVELAND, October 7.—S. Chester Crobaugh and three other former offi- clals and employes of the Union Mort- gage Co. today were under county in- dictments, charging fraud. The com- pany failed several years ago, with losses of several million dollars to its clients in Ohio. ‘The Indictments were returned late yesterday. Those named besides Cro- baugh, who was president of the com- pany, were D. D. Kimmel, a former president; William A. Casler, former sales manager, and Robert H. McWil- liams, former auditor. Indictments returned last Spring against E. H. Pylipp, Lawrence Mc- Donough and John A. Stansbury were quashed. unty Prosecutor Ray T. Miller said they had agreed to testify for the State at the trials of the others, which may start Monday. The action in the county courts against Crobaugh follows the collapse several months -ago of a Federal pro- g. Crobaugh was named several months ago in a Federal indictment, but it was nolled on orders from the Attorney General's office in Washington. BACK AT FILM STUDIO Barbara Stanwyck Returns Work After Leg Injury. LOS ANGELES, Calif., October 7 (). S i e T st y Wi it ;ertou‘ effects from an accident Mon- lay. She was unseated from a to Thorse she .was riding in the filming of “Forbid- den,” and pinned beneath the fallen Housp conference -had agrsed to the | will raise $500.000,000 to aid banks that ;animal, but the soft sands of the beach President’s prigral the President had not made these sug- gestions at least 25 members of -Cone m “in principle,” if have closed their doors, the President where the horse reared apparently bed vented serious injuries. Her legs spraineds said $150,000,000 had been subscriber within the last few days by the New ::;md HOOVER DISCUSSES HOME FINANCING | Calls Leaders of Various Sec- | tions to Map Out Changes in System. By the Associated Press. Gratified at the reception given by congressional leaders to his proposals for spurring business, President Hoover turned today to attack difficulties in the financing of home building. Secretary Lamont, as chairman of the President’s conference on home con- struction and ownership. headed those invited to meet at the White House to devise more ways of easing credit to allow increased building. Leaders Summoned. ‘The President is convinced credit for home building is not as satisfactorily organized as other branches of credit. To work against this situation, he called in prominent real estate men from various sections, as flolows: ‘William E. Best of Pittsburgh, Hiram S. Cody of Chicago, Harry A. Kahler of New York, Harry S. Kissell of Springfield, ‘Ohio; Samuel N. Reep of Minneapolis, W. A. Sterrett of New York, Ernest P. Trigg of Philadelphia, Clarence M. Wooley of New York, James L. Madden of New York and Clarence Dillon of New York. Some well known bankers also were expected to attend, but their names were not made public at the White House. Opposes Present System. Upturns on the New York Stock Ex- change brought more encouragement, to the White House. The President's main attention, however, went this afternoon to the real estate problem. Examination of reports has convinced him the present system by which first and sometimes second mos s are placed on homes, to permit purchase on hat amounts to an installment plan, with the various commissions and di: counts involved, is stifling home owner- ship and leading to the loss of many homes through foreclosure. He considers that Nation-wide plan- ning of housing and some form of established credit would have a definite effect on unemployment. Twenty-five committees, under ‘the leadership of prominent men and women, have been set to studying the various phases of the problem. Only one of these committees was embraced in today's conference—that de-lmfi specifically with finances. A reneral meeting of the entire group has called for December 2 to 5. THREE BANKS CLOSE San Antonio Institution Is Biggest Failing to Open in Texas. BAN ANTONIO, Tex., October 7 (#). —Three Texas banks closed yesterday. ‘The. Commonwealth Bank & Trust Co. of San Antonio was the largest. It had a capital stock of $300,000 and deposits aggregating $2,945.000. ‘The other two were the Pirst Na- tional Bank of Fort Stockton, Tex., A.F. OF L. STUDIES DISPUTE OF UNIONS Fight to Force Building Trades Group Out of Federation Opens at Session. By the Associated Press. VANCOUVER, British Columbia, October 7.—A fight to force three recaleitrant unions either to rejoin the building trades department of the American Federation of Labor or with- draw altogether from the basic organ- ization opened before the fifty-first an- nual convention of the federation here today. The matter came up in & resolution sponsored by M. J. Cassidy of St. Louis and adopted by the building trades de- partment after a hot debate last week. ‘The resolution calls for amendment of the federation's constitution to force the three crafts, carpenters, bricklayers and electrical workers, into the building trades branch or out of the federation. They withdrew from the departmental organization as a result of jurisdictional disputes. Beer Question Up. Prohibition also provided the am- munition for potential floor battle. One resolution was introduced under which the federation would advocabe modification of the Volstead act to permit the sale of 2.75 per cent beer. Another sought & declaration in favor of repeal of the eighteenth smendment and u third would put the federation on record in favor of repeal of the Yolstead prohibition enforcement act. The Hotel and Restaurant Employees and Beverage Dispensers International Alliance sponsored the resolution pro- posing repeal, while the Central Labor Council of Takoma, Wash.; favored re- peal of the Volstead act. In urging repeal of the eighteenth amendment the resolution said, in part: “We favor the installation by the States of a method of controlled and Testricted distribution which will pre- vent the exploitation of the liquor traf- fic for unconscionable profits and not only do away with prevailing speak- easies and secret dr(nfi‘:uz. but prevent the reappearance of an Unregulated sys- tem and the political iniquities which accompany it.” Davis Urges More Work. Senator James J. Davis of Pennsyl- vania called upon Americans yesterday to quit “cheese-nibbling” methods of relieving unemployment and organize to provide work for all. He expressed opposition to the dole system. p’m former Secretary of Labor said, in_part: “I believe in extending help in times of need. If we have a catastrophe, an epidemic or any condition beyond the control of man or the Government s°t up by man, I would be willing to hock the gold on the Dome of the Capitol at Washington to take care of the dis- tressed le. “But 'to ‘syphon money out of the Treasury for a continuous dole and thus place a heavier burden of tax on the backs of the workmen, as is the vogue now in foreign countries, and which, to my mind, destroys individual initiative and ruins the morale of & nation—I am opposed to it. Dole Is Last Resort. “Our Canadian workers, in the buflding trades council, sum up the dole in the proper manner. They say that they are strongly opposed to un employment insurance, except as a last resort. That last resort would b2 the time when we are all prepared to g0 back to living off our seed corn and nibbling at the cheese of fear—what a terrible word. Fear today of those many millions who are gainfully em- ployed reduces our buying power be- cause they are afraid that they, too, will join soon the ranks of the unem- ploved. Fear of our men of wealth, our bankers, make them call in loans that are being used for productive wealth and make progress. Few loans are being made today, and the’ lazlest tod: thing in Americ v, because of fear, is the dollar. It, to0o, is out of = on. as T see it is this: Are we wise enough—are we far- sighted enough, to use our national re- serve wealth while we still have it. to end unemployment; to create emplcy- | ment opportunities and to promote sound economie projects which will tend to revive our econcmic activities; or shall we pursue a Ccheese-nibbling policy which would continue until our national reserve wealth will have been totally squandered? Opposes Stock Juggling. “One forward step would be the elimination of wildcat financing and stock juggling. “We must quit top-heavy finance and over-speculation and turn back to the golden rule and set aside the law of the Jjungle. “1 am for a program of doing all the Government work that is possible today, but that alone will not give continuous employment. It will, however, help us to have more faith in ourselves. Let the employers of labor get the word ‘fear’ out of the minds of their employes who are at work and get them back into the market to buy.” E. N. Nockels of Chicago advocated a special session of Congress to float a $10,000,000,000 “prosperity loan to meet this great emergency by starting con- struction work.” Vice Comdr. Brooks of the American Legion, representing National Comdr. Stevens, lauded the federation for its “50 years of accomplishments,” and assured the delegates ‘“no one in America is opposed to your program of work for all at a decent wage.” Other resolutions included: Urged participation of the United States in a general disarmament con- ference at Geneva.in 1932 urged con- |, their doors | in struction and repair work on naval vessels be done in Government navy yards; favored legislation restricting competition of enlisted men in the Navy with civilian workers in repair and overhaul work; favored a Federal licens- ing law for business firms and corpora- tions; proposed investigation into the labor policy of firms seeking higher pro- tective tariffs; demanded enforcement of civil liberties in accordance with constitutionali guarantees; proposed creation of a labor and industrial board by President Hoover; proposed unem- ployment insurance “inaugurated and controlled by the States and subsidized by the Federal Government.” ASTROLOGICAL RADIO ADVERTISING PROBED Commission Orders Hearing Broadeasts by Two Stations. BY the Associated Press. Astrological advertising by two broad- stations yesterday caused the to set for Radio applications for renewal of f their on town, Pa, are operating in the public The San PFrancisco station was res ported to be broadcasts by an individual who questions sub- mitted by the public for $1. ‘The Allentown station also was re- ported to have an astrologer making promises of private readings of the stars 000, in_exchange for g - ge. purchases of books. will be MARKETS REACT HIGHER ON NEWS OF HOOVER PLAN (Continued Prom First Page.) garded as highly constructive, and that it would assuredly receive the hearty co-operation of Wall Street. Proposal Considered. Heads of several of the leading hnkfll were busily engaged in conferences to- day and it was understood that plans to co-operate in the immediate estab- lishment of the proposed $500,000,000 credit corporation were under consid- eration. ’ In the stock market Auburn was a high fiyer, selling up 87 to a high price of $106. Santa Fe Rallroad gained $3, touching $113, then slipped back. Amer- jcan Can held up well, however, rising more than $2 to above $81 and retain- ing most of its gain. United States Steel sold off more than 81, going below $70. Bethlehem dropped -about as ‘much, going under $29. New York Central rose $2.50 to $60, then more than lost its gain. Amer- ican Telephone rose $2 to $134.50, then fell back. Sharp Advance at Ovening. Prices advanced sharply at the open- ing, transactions ranging from 1.000 to 10,000 shares in numerous leading is- sues. United States Steel common opened at $71 for 3,000 shares, off 12 cents, but otherpivotal issues were strong. Some of the opening transactions were as fol- lows: Ten thousand General Motors at $26, up $1; 10,000 Electric Power & Light at $22.87, up $1.75; 5,000 General Elec- tric at $30.12, up $1.75; 300 American Telephone at $134.50, up $2.12; 1,000 American Can at $81, up 75 cents; 4,300 Consolidal ‘Gas of New York st $72.75, up 5; 2,000 Atchison at $118, up 83; Woolworth &t $51, up $1.62; 6,000 National Dairy st $26.75, up $2.62; 8000 Montgomery Ward at 1§12, up 62 cents; 3,000 North American at $36.27, up $1.37; 2,400 Westinghouse at $48.25, up 62 cents; 1,000 Auburn Auto at $104, up $5: 6,000 Union Car- bide at $35, up $1.50. Cotton jumped $1.25 a bale. The bond market rallied strongly, especially in the industrial and utility issues. Foreign marlets shared in the en- thusiastic revival of spirits that greeted President Hoover's efforts to restore confidence. Prices at London, Paris and Tokio rallied sharply. Interna- tional issues were especially strong at London. Even the price of New York Stock Ex- change memberships reflected the im- provement shown by security values. Arrangements were made for the sale of an exchange seat at $160.000, an in- crease of $4.000 over the previous sale. It was the first rise in exchange seat prices since September 11, when an in- crease of $3,000 was shown on a sale. CHICAGO STOCKS RISE. as Trading Starts. CHICAGO, October 7 (#).—Chicago stocks rose further today after an- nouncement of President Hoover's plans to break the depression. Smart ad- vances were numerous on the Stock Ex- change as trading started. Leading is- sues were up from major fractions to more than 2 points. Insull issues, un- der pressure lately, shared upturnséwith other groups, Commonwealth Edison |gaining 2%, " points. United Stat: | Radio was up 1 and others sho" | fractional gains. NEPHEW UNVEILS Ceremonies at Richmond Capitol Attended by Direct Descendants. Special Dispatch to The Star. RICHMOND, Va., October 7.—Declar- ing that William Henry Harrison, ninth | President of the United States, prob- | ably held more offices of public trust and responsibility than any other man the Nation ever produced. Maj. Gen. Charles | P. Summerall reviewed the life of the soldier-statesman at the unveiling of ! the bust of Harrison In the old hall of the House of Delegates. The ceremony was the sixth of a series of eight dedicated to Virginia; born Presidents. Gov. Pollard pre- sided, and William Steel Gray, III, a | nephew in the fourth generation of President Harrison, unveiled the bust, | which was the gift of his parents, Mr. and Mrs. W. S. Gray of Greenwich, Conn. Gen. Summerall said that Harrison was reappointed Governor of Indian Territory twice by President Jefferson and once by President Madison, and that for a short time the district of Louisiana was also placed under his jurisdiction, the two regions compris- ing the largest area ever governed by one man in the history of the country. “He will ever be among the country's greatest soldiers, statesmen and citi- zens,” Gen. Summerall declared. “and the generations will not cease to cherish his memory in pride, reverence and honor.” Direct descendants present at the exercises included William Henry Har- rison, great-grandson of the President. and John Scott Harrison, a great-great- grandson, both of Kansas City. The Harrisons, from Charles. City County. where President Harrison was born, and Gordon Harrison, formerly of Brandon, were among the collateral descendants present. | o ey Filipino Lawyer to Speak. The Liberal Club of George Wash- |ington University will hear an address on “The Philippine Independence Ques- tion” by Mauro Baradi, member of the Philippine bar, at 8:30 o'clock tonight in Corcoran Hall. Russia is increasing its kerosene ex- ports into Lithuania at the expense of the -United States, LOWEST RATES” _EVERYWHERE DEPENDABLE TIME SCHEDULE TO PHILADELPHIA NEW YORK MM TROPOLITAN Smart Advances Numerous on Exchange | BUST OF HARRISON | IBRUENING CABINET RESIGNS IN GROUP Chancellor to Form New Min- | istry—More Emergency Decrees Are Issued. ___ (Continued From First Page) | handiing of the Austro-German cus- toms pact. Emergency Decrees Signed, The present cabinet was installed on March 29, 1930, and has struggled with some of the most difficult problems i Germany's post-war history. Many of | its members were considered to be lia- bilities because of the strong criticism from left and right factions and their i i DEADLOCK BROKEN BY CANTON REBELS ,Demands Waived in Peace Negotiations With Nanking Officials. By the Associated Press. NANKING, China, October 7.-—High | lomdals asserted here today that the deadlock in the peace negotiations at Canton between the Nanking and the insurgent Canton goverment had been broke, the insurgent leaders having agreed to waive demands which hither~ to had blocked a settlement. Nanking spokesmen said Wang withdrawal constituted a house-clean- ing in preparation for the convening of | the Reichstag next Tuesday. Thirty typewritten pages of new von Hindenburg tnd published today| will compel every German again tighten his belt and reduce his life to| the simplest economic terms. | They also will force anti-government | factions to watch their conduct closely | lest they come in conflict with sweep- ing new powers, which some observers say can be stretched to abrogate such fundamental rights as inviolability of the person. ‘“ie home and the mail. Cover Wide Field. The decrees cover such subjects as salaries in private industry, unemplo; ment, Cebts of communes and state: agricultural relief, regulations for sav-| ings banks, extraordinary courts for tax shirkers and special powers for the po- lice to quell subversive movements. ‘The preamble explains that while the measures are diversified, they all are| calculated to ‘“enable the government and the people to adjust and readjust themselves to the hard necessities of | the actual situation.” | Some of the measures enacted were: | Federal aid for communes and states| in persuading foreign creditors to con-| ver. short-term loans into long ones; abrogation of long-term contracts by | pri: firms with emploves drawing | annual salaries in excess of $3,500; payment of one-third of unemployment | doles in kind; halting of construction of | administrative buildiggs for three years and reduction of high pensions. Others to Come Soon. A special be appointed to advance the the farm” movement. especially in small argicuitural settlements and where the unemployed gather along the fringe of cities. The capitaliza- tion of business concerns will be low- ered to meet changed economic condi- tions Further decrees soon will follow. the preamble said, which, together with the present measure, will be intended to reduce prices generally and enable Germany “to safeguard her position in | international negotiations, without | which final solution of economic and | { inancial diffculties is not possible.” | Special courts will be constituted to try persons charged with acts of ter- | rorism or dodging taxes. Any one | knowing of the existence of illegal or subversive gocuments must report them | to police. Who can even confiscate the | rtiulpmcm on which they were printed Clubs and other gathering places of radicals can be closed summarily by | authorities. 3 federal commissioner will “back to | Tn Constant Battle. The Bruening cabinet engaged in a constant battle for rigid economy. finan- cial reform and economic renabilitation from the very moment of its inception. It went before the Reichstag for its irst test April 3. 1930, winning a ma- jority of 68 votes. “Work or quit” was | the slogan of the steely-voiced, bespec- tacleq chancellor, and the Relchstag. despite the complexity of German parti san politics, generally obeyed the cre of the whip. Twice. however. Bruening adopted semi-dictatorial measures, authorized by article 48 of the German constitution, to impose his fiscal reforms upon the country. In July, despairing of Reichs- | tag approval. he sought the aid of Pr dent von Hindenburg. who dissolved the | Reichstag. For more than three months the cabinet governed Germany by de- cree. A few days after the dissolution | Bruening promulgated a series of re- forms involving & drastic reduction in | the government's expenses. Again at the beginning of December he resorted to article 48, and decreed another program of reform and econ- omy. On June 6, this year, the Presi- dent published new “economy decree: calling for drastic reduction of expen tures and further taxes on certain ar. ticles. | Steadily growing unemployment. financial depression and the rapidly increasing strength of the Fascists, ied by the flery Adolf Hitler, compli- cated the work of the Bruening min- istry. In the September elections the “Nazis,” as the Hitler partisans are called, gained 95 seats in the Reichstag. while the representation of the Cen-| trist party, or Moderates. to which Bruening owed allegiance, shrunk to 65. ' ‘ I emergency decrees signed by President | €7 | erstwh Ching-Wei and Sun Fo, Cantonese leaders, had agreed to come here imme- diately “in view of the present national ." and join in reconstructing the national regime. Although the details were not defi- nitely stated, it was understood the Cantonese were ready to waive demands for the removal of Chiang Kai-Shek 25 head of the Nanking government and the elimination of T. V. Scong as its finance minister. The recent dispute between China and Japan over the latter's occupation of Southern Manchuria served to start negotiations for peace between the two Chinese factions on the ground that the country should unify itself against & possible foreign threat. DESTROYERS SENT FROM JAPAN, Chingkiang and Tayeh Communities to Be Protected. SHANGHAI, October 7 (#)—The Japanese destroy Kaki and Hinoki were ordered today to sail from Shang- hai tomorrow for Chingkiang and Taych, respectively, to protect the Jap- anese communities there from possible violence at the hands of Chinese. The Japanese minister informed his Nationals at Yunnanfu that they should withdraw to Hanoi, French Indo China. The Japanese consul remained at Yun- nanfu, however. SECRECY VEILS CONFERENCE. Conciliatory Nanking Gestures Believed Helping Situation. HONGKONG, October 7 (&) —BSe- crecy still veiled developments today at the Peace Conference in Canton be- tween the Canton and Nanking fac- tions of the Chinese government, but the situation was believed to have been clarified somewhat by alleged concilia- tory gestures by Chiang Kai-Shek, head of the Nanking regime. Chiang was represented as having given assurances of the freedom of Hu Ham-Min, former head of the legisla- tive department of the Chinese govern- ment, who was made a virtual prisoner in Nanking for opposing Chiang’s poli= cies. The Nanking leader also alleged= ly agreed to permit the 19th Army, commanded by Gen. Chen Ming-Shu, former Governor of Canton. to garrison the Shanghai and Nanking areas. KIDNAPING IS FEARED. Former “Boy Emperor” of China Be- lieved Target. TOKIO, October 7 (#).—Reports re- ceived here today said Hsuan Tung, “boy Emperor” of China, now living in retirement in the Japanese sec- tion of Tientsin, is in danger of being kidnaped by advocates of a Manchurian monarchy. The monarchists, who began to sfow activity with the rise of independence and separatist agitation that followed the Japanese occupation of Southern Manchuria. were represented as desir- ous of getting Hsuan Tung into their hands and hustling him off to Mukden for use as a puppet Japanese authorities in Tientsin, feel- ing more or Jess responsible for the “boy Emperor’s” safety, reinforced the guard patrol about his house, reports said. Hsuan Tung was taken from the cradle and installed upon the throne of China in 1908 after the death of the Emperor Kuang Hsu in 1908. Hsuan Tung then was two years old. The revolution of 1911 toppled him from the throne at the age of five, NATIONAL BEAUTY PICKED Chain Store Accountant Only Long- haired Girl in Finals. NEW_YORK, October T (#).—Miss Lindel See. 20, and a brunette, an ac- countant in a chain. grocery store, last night was selected “the most beautiful girl in America” at the American Beauty Congress at the Hotel Astor. John Held, jr.: Rolf Armstrong and Irving Chid- noff were the judges. Miss See lives in Leng Island. She was the only long-haired girl in a_group of 12 finalists chosen from 1.500 entrants from nearly every State. A Bank — doing'sm'l.'L:thinu‘B'lG' A Loan Small enough or big enough ~ to fit the situation youare.trying to work:out Comeln ~ Morris Pi; an Bank Under Supervision U. S. Treasury Loaning Hundreds to Thousands