FRIDAY, DECEMBER 20, 1935

THE MICHIGAN IAILY

PAGE

IY.WY .. ..

See No Need
For Curb On
Bank Credits
Federal Reserve Boar
Says Business Is No
'Over-Expanded'
WASHINGTON, Dec. 19. - () -
The Federal Reserve Board sees n
evidence of "over-expansion of busi
ness or of the use of business credit.
A joint statement of the boar
and its Open Market Committee is
sued after a study of thequestion
raised by the fact that banks hay
$3,310,000,000 in excess reserves, sai
action on this matter would be take
as soon as "it appears to be in th
public interest."
Continued improvement was foun
in business conditions, although th
committee declared the nation is stil
short of "full recovery."
Pledge Continued Study
The statement listed the further
ance of recovery as the primary ob
jective of the Federal Reserve Sys
tem.
"The present volume of member
bank reserves, which have been great
ly increased by imports of gold fro
abroad, continues to be excessive, fa
beyond the present or prospective re
quirements of credit for sound busi
ness expansion." the statement said.
"Therefore, the special problem
created by the continuing excess o
reserves has had and will continu
to have the unremitting study an
attention of those charged with th
responsibility of credit policy in orde
that appropriate action may be taken
as soon as it appears to be in the pub
lic interest."
Advice Rejected
In the statement observers saw dis
inclination on the part of the Open
Market Committee to follow the ad-
vice of the Advisory Council, made
up of business men in the reserve
districts. They had recommended
that reserve banks sell some of their
Government securities to member
banks, thus reducing the excess re-
serves of the latter.
The Open Market Committee, com-
posed of the governors of the 12 re-
serve banks, was said to believe tha
the Government bonds held in Re-
serve banks represent the greatest
earning assets.
The present excess reserves -
which are sums in addition to the
balances which member banks are
required to keep on deposit with re-
serve institutions - are declared by
some economists to be the potential
basis for credit inflation.
BANKERS' VIEWS DIFFER
NEW YORK, Dec. 19. - (P) -
Oncehmore the House of Morgan
and the House of Rockefeller have
clashed on the, field of banking opin-
ion.
This time the issue is whether the
excess banking reserves of more than
$3,000,000,000 shall be reduced.
Dr. Benjamin M. Anderson, spokes-
man on things economic for the Chase
National Bank, of which John D.
Rockefeller, Jr., is the largest share-
holder, has advocated prompt and
vigorous measures for the reduction
of excess reserves.
S. Parker Gilbert, partner of J. P.
Morgan & Co., and former Under-
secretary of the Treasury, says, on
the other hand that no action should
be taken at this time to chop down
excess reserves.
In his Oct. 30 address before the In-
vestment .Bankers Association of
America at White Sulphur Springs
Anderson contended reserve require-
ments ought to be raised promptly to
forestall the threat of a credit boom.

Gilbert, in a letter to the New York
Times, said. "The plain fact is that
there has been little or no expansion
of credit in the past year." This
comment he pointed up adding,
"There is thus no problem of 'injur-
ious credit expansion.' "
AUSTRIA URGES SMOKING
VIENNA, Dec. 19. - (A')- To in-
crease the use of tobacco, a state
monopoly in Austria, smoking by
public officials during working hours
is being encouraged. Letter carriers
in uniform cover their routes with
long cigars in their mouths and even
beggars, while soliciting alms, puff
at cigarettes, confident that in doing
so they are helping to maintain the
government.
i t
3 I
A Hearty "Thank You"
for the good will you have
shown and with Best Wishes a

General Calles, 'Traitor' To His Party, DefiesExpulsionEdict
M E X I O C I Y- --c .-9 .- - - --- -- - - -a chw
MEXICO CITY, Dec. 19.- 1 political rival, President Lazaro Car- Senator Torres Oritz charged Mor- crnment, admitted his life is in dan- I*, To Protest
s len. Plutarco Elias Calles, branded denas. is "artificial and unjustified." ones with tricking the workers" and j ger and "they may assassinate me."
r "traitor" by the National Revo- Governors of four states, ousted building up a personal fortune which "The government has become l liday Liquor Law Jewelr
utionary Party he founded, defied from their official positions for as- he said includes real estate valued alarmed believing I am conspiring__
d he government's demand today that 'scrtd friendship with Calles, stepped' at 500,000 pesos ($135,000).agamst its institutions" he said,
ie leave the country, down. Dispatches said the changes Morones "betrayed the govern- "whlch is completely false. To con- DETROIT, Dec. 19. -(')-The
"Mexico is my country and only by in administration in Sonora, Sinaloa, ments of Obregon, Portes Gil and sire i this country it is necessary State Liquor Commission will hold a
;iolence can they make me leave," he Durango, and Quanajuato were ac- Cardena," Senator Oritz asserted unt on the army or part of the heing here today on a request that
leclared after the national senate complished peacefully. "and the blood of Obregon is on him." the 2 a.m. curfew on Detroit liquor Fine Watch and Jewelry repairing
vrote him out of the party as a Similar charges of conspiracy were The charges were referred to the establishments be suspended on New
'traitor to the Revolutionary program preferred against five senators and Year's Eve.
i- nd a conspirator against the na- Luis N. Morones, former minister of attorney-general, who will decide CHICAGO, Dec. 18.--(1)--Fear The appeal was made by city po-
ion's institutions." labor and economy, the latter being whether the six men are to be ar- that Red, a dog with a $27,500 trust lice efficials, who said it would be "im-
d Calles said the agitation raised by accused by the senate of having urged rested and brought to trial. fund, was in the hands of kidnapers possible" to enforce the closing hour READ THE WANT ADS
- he government, now headed by his workers in Manzanillo to revolt. Calles, in his challenge to the gov- led to a police investigation today. rule on the morning of Jan. 1.
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n ~She's expecting that "Santa" wilt be "Jacobson Wise"
- again this Christmas. She hopes the beloved fellow
will go to the Campus Fashion Center first because
e ~his task of selecting just what she wants will be a
pleasure , .. with all the gorgeous things before him.
IT
t
FLANNEL and SILK
A flannel or silk robe should have a place in every feminine
wardrobe. They come in solid or a combination of colors.
The prices start at $5.95.
- PURSES and MUFF BAGS SWEATERS ad BLOUSES
We'll mention leather, and suede Let us also suggest sweaters - twin
SN:hpurses - plain and ornamented - and single - or an adorable silk
various sizes and shapes. And if she blouse to wear with her favorite
carries a muff.. . the all-important Jacobson skirt. Jacobson's have a
>muff bag. Pertinent items and a very complete holiday stock. Mod-
very big Christmas idea. The price, estly priced at $1.95 and more.
$1.00 and more.
p ?
to Men Shoppers-W e'll be pleased 1o show
yoi 1all of our "Chris/naAs Morning Glories,"

9 as the tr aditional gift from a man to a girl --or, from a girl to a
girl. We are celebrating the Yuletide season with a silky array of
Sthesecharming underthings. The price range is $1.95 and more.
% 4'
GOWNS SLIPS
tailored and adorned with beauti- Need we mention that she cannot -
ful lace. One of these certainly will have too many shades . . . and the
be listed at the top of her "Christ- "trims" are elegant. The cost is
mas Morning Glories." Don't dis- only $1.95 and more.
appoint her. The prices rise from
$2.95,
HOSTESS GOWNS SILK NEGLIGEES and
In this age when comfort and cor- LOUNGING PAJAMAS
<} rect dress go "hand in hand" the
Hostess Gown has demanded its If you believe she has everything
place in the afternoon and evening we have suggested, other "certain-
< " home festivities. One of these would to-please" gifts are silk negligees
Y j be a compliment indeed. The prices or lounging pajamas. The prices
start at $10.95. of these very desirable gifts start at
k.$10.95 $5.95
;>nd Several "INCIDENTALS"
HANDKERCHIEFS -COSTUME JEWELRY, Etc.
3,
£4 k4 a