Show EASY MONEY POLICY ON TRIAL Failed Once but Conditions Different Now It Is Argued By RICHARD RD L. L GRID GRIDLEY LEY United Press Financial Writer Wrier NEW YORK Jan 16 A 16 A new nw easy casy money noney policy of the federal reserve system designed to draw millions of dollars in idle funds into legitimate business channels channel absorbed attention of business leaders last week Mindful of huge stocks stock of surplus materials throughout the country and ad actual need o of goods federal reserve authorities apparently concluded thata that a all that was needed was confidence This Is would be accomplished by lightening light light- Ight ening credit lines Bankers Insisted that the tat policy which would Involve purchases by banks of oC bankers bankers' acceptances and ad government bonds and freer borrowing borrow borrow- borow ing from the central banks Jil fron centra bink contained no inflammatory aspects aspect but merely was a relaxation of bank credit credit Purchases of securities by banks would put that much money into business channels and buoy stock and bond prices While a similar policy pursued car early in the depression failed to promote promote pro pro- pro mote economic it recovery was pointed point ed out that present conditions are far r nf Business made nade further small smal gains during the past week week Steel tion ton gained further furter on heavier heaver automobile automobile auto mobile purchases car loadings made seasonal gais gains gams and automobile production pro ducton was well wen maintained Automobile makers were encouraged aged by the enthusiasm sn with wih which the new models were received at the New York and San Francisco annual showings and ad are said to have received re re no- substantial orders order Estimates of this years year's automobile output range from ron to 2750 cars cas a better showing than was made nade in m 1931 A sharp shar increase In automobile production would be felt fel throughout the entire entre Industrial world world Much needed aid for the te depressed railroad industry was promised in the relief programs being discussed by congress congre and by the current confer confer- conference ence once between railroad presidents president and union labor leaders leders concerning a 1 10 IC per cent wage reduction Conditions in the oil oi industry improved im Ira- proved last week week Harry F F. Sinclair veteran vetera oil oi man finaly finally succeeded in uniting the Sinclair Consolidated d Oil 01 corporation of which he is chairman chairman chair chair- man na with wih the Prairie Oil Oi and Gas company and ad the Prairie Pipe Line company This union forming the fifth largest oil oi company in the country country cou coun coun- try will wi tend to make for tor faither Ither stabilization |