Show Reconstruction Finance Will Wil Give Aid to Business I HO HOUSEWIFE g WIFE RETAILER MANUFACTURER VR WORKMAN WOMAN I By ALL ALLARD SMITH Executive Vice President Union Trust Company Cleveland The Tue launching of the new 2000 reconstruction finance nance corporation corpo- corpo coro ration atlon raton may be expected to serve sere two purposes purposes One is is' to hasten the start of f some measure of business recovery The other is to bring about a n gradual restoration of general confidence If I the operations of the corpora corpora- ion tion on help to check the excessive deflationary de de- tendencies in commodities and nd securities the te effect upon confidence con con- will wi be profound Holders of securities and commodities would have assurance against continued losses from frightened or distress sell sell- sel ling lag ng Even more marc significant is the reassurance rens reas- urance the corporation gives to banks and bank ba depositors The Te chairman lof of the house banking and currency committee comments that the corporation corporation corpo ration raton furnishes a quasi quasi guarantee guarantee for tor bank depositors and that it should by affording necessary credit and the dissipation of fear put an end to bank ban failures with all al the attendant attend attendant ant demoralization and distress to communities affected To the extent that the corporation succeeds in thawing out frozen bank loans trade will wi benefit Trade wilbe will wil willbe wi be helped also when money which has his been boarded through timidity or Ot tion ton Ignorance flows back into int circulation Money that is hoarded does no one But when it 1 is in normal chan channels channels chin nels it IL helps business expand fosters employment and enables banks bank to extend more credit to business enter There arc are many ways in which the influence of the new corporation corpo corporation corpo ration may prove proe helpful and conf dence in its is effectiveness is justified |