Salt Lake Telegram | 1932-04-16 | Page 11 | Says Country Recovery Bent

SAYS SA YS COUNTRY RECOVERY BENT Reserve Purchases of Government Government Gov Coy Bonds Loosen Up Bank Funds B By RICHARD L. L GRIDLEY United Press Financial Writer Wrier NEW YORK April Apri 16 UP UP Dc U De Determined efforts of governmental and banking authorities to set the country on the road to recovery have rekindled dIed hopes in business and financial circles Wielding its us it strongest weapon- weapon open market purchase of government securities the securities the the federal reserve board has embarked on the largest larget campaign of is its character since formation of the reserve system It is designed to pump pup money into business to bolster prices and promote trade Purchase of in government govern govern- gover ment meat bonds by reserve banks this week setting a corresponding amount of currency into business channels stopped the downward trend in stock and bond prices pries and contributed to a sweeping recovery in grain gram prices price Business and banking leaders leader agree with wih the optimistic views expressed by President Hoover last night particularly particularly par par- that the business setback recently re rc re- re centy was based chiefly on exaggerated ted and unwarranted rumors and md fears of passage of the soldier bonus Although general business activity showed little change this week many leaders were ere hopeful of almost im immediate i. i un- un mediate improvement improvement Figures compiled compiled com piled pied by the American Banker showed bank failures this week numbering numbering numbering num num- bering only six or the smallest of any period since 1928 1923 Failures ran into inlo the hundreds in the tho carl weeks of the year So far fr April Apri h ha has ts s seen c n only ni 25 closings against 51 in m March llarch 12 in February and in m The difficulties of the Insull Insul Holding Holding Hold Hold- ing company units unis have been dim clim- elm mated as a market factor Unfounded Unfound ed rumors affecting other large companies com panics have been dissipated Most cheer is apparent in the southwest south west vest where wheat prices and anti signs of ot stability in the oil oi industry have added millions of dollars to purchasing ing power Many larger corporations have pared personnel and expenses to a point where a increase inactivity in inactivity activity would result resul immediately in rehiring workers