Show CREDIT PLAN BLOCKED BY BYS S E N BLAINE Solon Prevents Administration tion Leaders From Acting Acting Acting Act Act- ing on Bill FINAL OUTCOME DELAYED Huge Project Forced to Take Regular Place on Calendar By United Tre Press s WASHINGTON Jan 16 President 16 President Hoovers Hoover's reconstruction finance corporation project W was lS blocked today by a legislative maneuver maneuver maneu maneu- ver which may materially delay its final enactment Senator Elaine Blame Republican Republic ln Wisconsin Wisconsin Wis WIs- an opponent of the me measure prevented administration senate leadens leaders lead lead- ers ens from beginning today the task o of reconciling the differences in the bill billas billas as lS passed by house and senate The huge project to provide credit for aiding railroads and financial institutions institutions was forced to take a regular place on the senate calendar HOUSE PASSES BILL Final congressional action on the reconstruction corporation bill which the house p passed last night to 55 55 will not be possible until next week This delay W was lS caused b by insistence of the house upon its own bill which differs slightly from that passed Monday by the senate The house was in recess today after five days das of continuous work on the relief measure Working like a l giant battering ram an effective lican Democratic coalition knocked down amendments yesterday as they were vere offered by a dissenting group in each party who then voted against the measure in protest A dozen Republicans Republicans Republicans Re Re- publicans and 43 Democrats refused to support it itIn In addition to the of the reconstruction corporation there is in the federal land bank bill which should reach the president president president dent next week for bank depositors' depositors relief afforded in another pending measure and reaching far credit potentiality in the proposed re rediscount rediscount rediscount re- re discount banks designed to ease the Continued on Pare Pue Two 4 5 CREDIT PLAN BLOCKED BY SEN BLINE Continued From om Page Pago POe One frozen real estate mortgage situation The federal reserve system has a re reserve reserve reserve re- re serve credit credi of or which can em be used if j needed to provide about In credit This Thi i in turn tur can be expanded several times time ties Administration financial experts den deny any inflationary tendency i ithe in inthe inthe the Hoover program The only expansion expansion expansion sion they SO say will wH be in m proportion as federal reserve bank credit is i thrown throw in Federal reserve lion tion lon Is provided in most cases eases particularly particularly in the reconstruction bill bU Considerable Considerable Considerable Con Con- credit credi expansion is Js possible but always with the rein check-rein of th the federal reserve board here Even a small smal amount of credit in a asmal small smal community doubles and trebles and quadruples When cont as contemplated contemplated m- m plated by the relief measure deposits deposit in defunct banks are made available in a community It i starts a continuous process of or liquidation and revival revival The citizen pays his grocer his hs baker bake baerl his tailor and these in i turn meet the their obligations to the wholesaler and th the manufacturer and business generally generall Is stimulated This Thi sort of or stimulation on a large larg scale throughout the is country en en- |