Audio statement by US Treasury official Ogden L. Mills re Hoover administration's plans to alleviate the Depression

The video discusses strategies to enhance purchasing power and liquidity in the banking sector. It covers legislative measures to manage bank assets, liberalize Federal Reserve facilities, and potentially create a government finance corporation. The aim is to support federal land banks and ensure credit availability for farmers. The importance of confidence in the credit system is emphasized to facilitate economic recovery.

What is the primary goal of organizing banks by districts?

• To increase competition among banks

• To release funds to depositors and boost purchasing power

• To centralize banking operations

• To reduce the number of banks

What is one of the president's recommendations to Congress regarding the Federal Reserve Banks?

• To privatize the Federal Reserve

• To increase interest rates

• To liberalize the re-discount facilities

• To close down smaller banks

Under what condition might a government finance corporation be created?

• If private credit facilities are insufficient

• If the stock market crashes

• If inflation rates rise

• If unemployment rates increase

Why is credit considered vital for trade and business?

• It allows for higher interest rates

• It facilitates international trade

• It forms the basis of modern business and agricultural activities

• It reduces the need for cash transactions

What is essential for maintaining the relationships between creditors and debtors?

• High interest rates

• Government intervention

• Confidence in the financial system

• Strict regulations