Rescue Squad

National Credit Corp., cornerstone of President Hoover's Super Plan, began to function last week. Its twelve directors met for organization in the Federal Reserve Bank building in New York, elected officers, laid plans for smooth mechanical operation.

Elected board chairman was the largest man present, rotund George McClelland Reynolds of Chicago. Iowa-born 66 years ago, he is in his Sist year of banking. With his brother Arthur he built up the Continental Illinois Bank & Trust to fourth largest in the U. S., biggest outside New York. Famed as merger masters, the Brothers Reynolds accomplished their last coup in 1929 when their bank absorbed Illinois Merchants Trust Co., onetime stronghold of Ernest Hamill and John J. Mitchell.

New York Trust Company's Mortimer Norton Buckner was elected president of National Credit Corp., Daniel Gould Wing of Boston and Walter Winfred Smith of St. Louis vice presidents. Nelson S. Dearmont of New York became secretary & treasurer, the only officer not on the board.* After their meeting the directors issued a long statement, promised the corporation would be ready to loan money within the week. Made public also was the news that within the past month New York banks had loaned $100,000,000 to neighboring centres to prevent further difficulties. These loans will be considered part of their subscription to National Credit Corp. debentures.

National Credit Corp.'s directors enthused over a Treasury ruling made by Secretary Mellon last week. This decision permits banks to secure U. S. Government deposits by putting up Credit Corp. debentures instead of U. S. bonds and banks acceptances previously required. This will enable banks who need additional funds to keep their Government deposits but will release their bonds and acceptances which may then be taken to the Reserve, used as collateral for loans. It was the first important ramification of the President's Super Plan. It was more definitely inflation (creation of new credit) than anything yet done.

* The balance of the board: Livingston Erringer Jones, president First National, Philadelphia; Arthur E. Braun, president Farmers Deposit National, Pittsburgh; John King Ottley, president First National, Atlanta; Frank Bartow Anderson, chairman Bank of California; John Maffit Miller Jr., First & Merchants National, Richmond; Edward Williams Decker, president Northwestern National; Walter Scott McLucas, chairman Commerce Trust Co., Kansas City; Nathan Adams, First National, Dallas.

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