| Show MOVE BEGUN I ITO TO EMPLOY IDLE MONEY I IOwen Owen D. D Young Heads Committee Corn Com of Bankers and Industrialists PLANS NOT YET READY Hope to Check Deflation of Bank Loans fD Or Dr Associated Press NEW YORK May 20 A 20 A new move to put hundreds of oC millions of idle dollars to work was started today by bya a powerful committee of bankers and industrialists under the chairmanship of ot Owen D. D D Young I The group was called together by George L. L Harrison governor of the thc New York federal ll reserve bank to tomake tomake tomake make the federal reserves reserve's policy of credit expansion effective and in answer answer answer an an- to a demand in man many quarters for more drastic means of stimulating a recovery in prices It was pointed out that in spite of oC the fact that the federal reserve system tern tem has purchased of United States government securities releasing funds capable of supporting of bank credit the thc deflation deflation deflation de de- de- de of bank loans and investments has been unchecked Fear and uncertainty uncertainty un un- certainty on the thc part of banks and the investing public alike have prevented prevented pre pro vented the thc reserves reserve's policy from taking taking tak tak- ing tag its full effect By the thc formation of the new committee corn com financial authorities hope to find the means for bringing together the vast surplus of idle funds in the banks and the many worthy projects in in need of oC credit redil that thal exist throughout through through- o out oOl t the country NOTHING DEFINITE Members of the group said after their organization meeting yesterday that nothing sufficiently definite had been arranged for them to be able to comment upon their program Financial Finan Financial cial leaders suggested however that one possible avenue of credit expansion expansion ln sion lay in m loans to building and loan societies by the large commercial banks answering a demand for credit for financing of small homes Another possibility suggested was the thc extension of oC credit to farm loan banks in order that these institutions might more freely grant accommodation tion to the agricultural districts The Thc membership of the committee as announced by Mr Harrison follows follows fol fol- fol lows Owen D. D Young chairman General Electric company committee chair chair- man Mortimer N. N Buckner chairman New York Trust company Floyd L. L Carlisle chairman Consolidated Consolidated Consolidated Consoli Consoli- dated Gas company Walter S. S Gifford president American American Amerlean Amer Amer- ican lean Telephone and Telegraph com pan pany Charles E. E Mitchell l chairman National National National Na Na- City bank William C. C Potter president Guaranty Guaranty Guar Guar- anty Trust company Jack Jackson on E. E Reynolds president Continued on Page Pue Three e MOVE BEGUN i i TO EMPLOY I I IDLE MONEY Continued From Pate Pace Ont One First National bank Alfred Allred P. P Sloan Stoan Jr president Gen cral Motors corporation Walter Waller C C. Teagle president Standard Standard Stand Stand- ard Oil company of ot New Jersey A A. A A. A Tilney chairman Bankers Trust company Albert H H. Wiggin chairman of ot gov governing governing board Chase National bank Clarence i M. M Woolley chairman American Radiator and Standard Sanitary San San- Sanitary corporation CHIEF DIFFICULTY DIFFICULT Banking authorities sa say that one of oC the chief difficulties In by the way of the rapid and aud successful operation of the federal reserves reserve's credit expansion has rias been the concentration of funds in New York principally because bankers in other parts of the country arc are either cither unwilling or unable to tomake tomake tomake make use of their funds As th the federal reserve has purchased pur pur- purchased chased governments the funds put into the market have tended to concentrate con conS centrale in m New York even though much of ot the securities purchased by the board have been sold by banks in m other parts of ot the country Many interior banks wishing to dispose ol ot some of their governments will sell them through New York it was said and then leave the funds on deposit rather than recall them In the face of ot this piling up of idle money here New York bankers have had great difficulty in finding employment em cm for money It was suggested that the new financial fi I. I committee providing leader leadership ship of the strongest character wilbe will wil willbe willbe be able to devise some means to make I this huge surplus available where itis it itis is most needed by recommending to banks worthy outlets for the money by supplying the leadership needed to oppose unsound legislative plans I and to put forward sound ones I New York Movement Expected to Spread W WASHINGTON May 20 Sec TV Mills said toda today the formation of committees of or bankers and industrialists industrialists indus indus- in ln all federal reserve districts similar to that announced yesterday in New York to s secure ure more active co cooperation cooperation cooperation co- co operation between bankers and Industry industry Indus Indus- try and md business is a logical outcome of or the New York movement The committee in the metropolis was formed after a conference Wednesday night to which the secretary secretary secretary secre secre- tary of or the treasury and Governor Meyer of the federal reserve reserve- board were invited New York bankers decided to form the after learning from the government officials als conditions which indicated the need of such an organization While officials would not discuss the he organization except Pt to give it their hearty approval it was learned that the action was taken after aUer it had been decided there was need of ot active cooperation of bankers and business and industry in putting to work the thc of credit made available a through the federal reserve systems system's I recent purchases of ot government go se se- se The chief aim It was wal pointed out is to restore confidence and break the I credit jam at some point to permit freer freel flow now of the credit stream in m hope I that it il would grow and might become revived re fairly quickly |
