| Show finance corp Y n will restore confidence huge finance corporation to relieve commerce and agriculture now staff stag coring jering felrom severe blow of depression roller is expected within week washington january 10 19 financial relief for or agriculture and industry in tho the eum sum total toul of two billions of dollars to Is the purpose ot of tho the newly enacted reconstruction finance corporation act which forms forras the hub ot of president hoovers twelve spoke program for the rehabilitation of the nati nation ort reduced to simple terms the act Is designed primarily to bolst bolsar r the tast fast faltering banking structure by adding both solvent and insolvent banks to prevent a collapse of the rail transportation system of the country which find unable to carry on necessary refi dancing because of unfavorable recur ty market conditions and to aid intermediate credit banks agricultural ri credit corporations building and loan a and ns urance companies with the failure last year ot of 2210 2 banks blinks with deposits ox or 1759 it la 13 apparent that swift and effective action must be taken it if renet Is to be afforded in time to prevent a most serious and tar far reaching development tho the outstanding difficulty confronting the country springs from the losa loss of confidence and d the general state of fear that has been created by these widespread bank failures meantime banks that are we members of the federal reserve resene system find themselves without such negotiable goti got able lable paper as can be offered for re discount at the federal reserve banks and so are unable to find mid the necessary rece assistance troi trot i 1 this Ile federal deral system au an a consequence of 0 these developments deposits in large amounts have been fed tied up in banks now solvent confidence has been seriously chaken and there has been a break dovin of local cr er dit facilities with widespread decrease li it value values s and general of business in this situation there must be an improvement in the banking system before 0 biere ere can be an expectation pec tation of A return to normal conditions in the nations economic life with this end in view the reconstruction finance corporation act will provide credit facial ties that will afford relief to 0 many banks that are worthy of credit and are unable at this time to command necessary accommodations in addition to the relict relief which will be given to these institutions provision Is made for loans loam upon the assets of any banka banks that are c closed insolent Inso Kent or in process of liquidation to aid tn in the reorganization za tion or liquid liquidator aton of such banks bant it Is the hope that this provision w will ill afford a large demure of relief th 16 communities that have been deprived of normal banking ao so and so aid such communities in attaining econ economic ornic recovery the depression has bit hit the railroads hard causing tremendous de cress in both their freight and Vasse passenger riger traffic income in addition the condition ot of the financial market wrecks their nullity ability to ro finance maturities that are ate coming coining due and which are tn in amne instances most pressing the total amount mount of maturities which fall due tills this year Is 1 with refinancing of abe thee dobli 1 galionis gat ions ionis made impossible under present market condi conditions tiona the whole transportation system Is threatened with disaster if relief Is not afforded the reconstruction finance corporation Is authorized to make loans to such carriers as are unable to obtain funds upon reasonable terms through banking channels or from the general public with this vast aid to banking institutions agricultural credit organization fa and to the railroads ral roods roads it Is the confident belief that the credit situation will sill be aach ea cd all along the line with adequate bacill facilities provided for the largo large refi reft aaning of agriculture commerce and industry and it Is the to pet get the new corporation functioning ishou belal an initial capital ot nf DO will be furnished by the treasury so that immediate pressing loam loans may be made in addition the corps atlon would issue one billion tle ilse hundred million dollars of its own securities curi curit ties les to bo be used in making ad loans loam la in the next year or two the great necessity at this time Is I 1 the restoration of credit and con it Is the howand thi belief alike ot of public officials and the head heads of the great agricultural industrial du and labor organizations that this thea measure ture will accomplish this result MOAB moan page and claybaugh engineering gi corporation received a contract for grading miling and arid graveling traveling miles of utah highway from colorado river to this plat OGDEN annual ogden uve ure stock show held here recently |
