The conference this morning of twenty-two industrial and business leaders warmly endorsed the President's statement of last Saturday as to steps to be taken in the progress of business and the maintenance of employment. The general situation was thoroughly canvassed, and it was the unanimous opinion of the conference that there was no reason why business should not be carried on as usual; that construction work should be expanded in every prudent direction both public and private so as to cover any slack of unemployment. It was found that a preliminary examination of a number of industries indicated that construction activites can in 1930 be expanded even over 1929. It was stated, for instance, that the telephone company was proposing to assist by a considerable expansion in their construction and betterment program over the year 1929, during which year this company expended something in the neighborhood of $600,000,000 for this purpose. It appeared that the power, gas and other public utilities could undertake a program in excess of 1929, the details of which would be developed at a special meeting of the leaders in the industry to be called, after which the program would be announced. The leaders in the automobile industry expressed the opinion that whereas in 1929 production was unusually large due to the carryover of a great deal of unfinished business from the previous year, they confidently expected that except for this excessive margin the industry should quickly return to its normal production. In the steel industry it was stated that large construction programs would be undertaken for replacement of antiquated and obsolete plants.
It was considered that the absorption of capital in loans on the stock market had postponed much construction and that the flow of this capital back to industry and commerce would now assist renewed construction.
It was the opinion that an indirect but very substantial contribution could be made to the extension of credit for local building purposes and for conduct of smaller business if the banks would freely avail themselves of the rediscount privilege offered by the Federal Reserve Banks.
The meeting considered it was desirable that some definite organization should be established under a committee representing the different industries and sections of the business community, which would undertake to follow up the President's program in the different industries.
It was considered that the development of cooperative spirit and responsibilitiy in the American business world was such that the business of the country itself could and should assume the responsibility for the mobilization of the industrial and commercial agencies to these ends and to cooperate with the governmental agencies.
The members of the group agreed to act as a temporary Advisory Committee with the Secretary of Commerce who was authorized to add to the committee. Mr. Julius Barnes, Chairman of the Chamber of Commerce, was asked to create an executive committee from members of this group and the various trade organizations who could assist in expansion of construction and maintenance of employment. A definite canvass will be made of the different industrial fields to develop the amount of such construction.