The President's News Conference

PHILIPPINE INDEPENDENCE

THE PRESIDENT. On Secretary Hurley's return, at the Cabinet meeting this morning, we discussed the Philippine question at considerable length. We have explored the subject but formulated no conclusive policies in the matter. These discussions will be continued. Independence of the Philippines at sometime has been directly or indirectly promised by every President and by the Congress. In accord with those undertakings, the problem is one of time. In the interest of the Philippine people, the time element involves the necessity that independence must be assured of durability and the Government of the Philippines must be assured of stability. For instance, the economic independence of the Philippines must be attained before political independence can be successful. Independence tomorrow without assured economic stability would result in the collapse of Philippine Government revenues and the collapse of all economic life in the islands. We propose to give further consideration to the whole question during the immediate future.

NATIONAL CREDIT ASSOCIATION

I have some questions here on the matter of the National Credit Association and its progress. I haven't any public statement to make about it as yet, but for background purposes I can inform you that I had a meeting on Saturday night and Sunday morning with the Chairman and the President of the new association--that is, Mr. [George] Reynolds of Chicago is the Chairman, and Mr. [Mortimer N.] Buckner of New York, who is the President--in order to learn the progress being made. They reported that the country was organizing itself very rapidly into the necessary associations; the subscriptions were being developed, and that they had no doubt as to the completion of the entire project, so far as minimum subscription is concerned, by the end of this week. They are already interesting themselves in the banking situations in various quarters, and they find the whole country is rallying to their quotas and their interest in the association. The organization, as you perhaps know, rests fundamentally on the existing clearinghouse associations where they exist--where they are now established--and upon associations of country banks and others where there are no existing clearinghouse associations. A committee is set up in each of these new associations that will conduct the work of the Credit Association. In States where they have not had clearinghouse associations, such as the State of Iowa, for instance, they are forming the Iowa State Association, covering the entire State and all of the banks in the State. That is the case in a great number of other States that lie outside of the larger banking centers. Those associations have already been started in practically every locality, and their first function of their committees is to secure the subscriptions of the banks, and then they pass on to the problems that they have immediately before them.

Very fine progress is being made, and the project is meeting with almost universal support from the banking world. I am confident that it is already performing a considerable function in the restoration of confidence, and that it has made some direct accomplishments more specifically.

And that is all I have this morning.