President Hoover Acts 29

large reserves of our leading industries, which had
providently plowed-back into surpluses from their
expanded earnings of recent years. It could be
provided by new public and private issues of securities,
 especially of bonded securities.
For this purpose, Chairman Barnes points out,
vast credits are available to such extent that money
rates have gone down. Until confidence is fully
restored and business is again in full volume there
should be the certainty that our credit structure
will be more than equal to the extensions demanded.
That should tide the country over the period of
dislocation. But it might be objected that interest
and sinking fund payments would soon become due
on the added bond issues—installment payments on
the country’s added circulation of purchasing power
which will add to public and private burdens.
But these burdens can be better carried if the
dislocation produced by the panic is prevented from
destroying real values in enforced idleness and
depreciation of plant and product, unemployment,
and business stagnation.
Of course added public and private expenditures
in emergencies must be controlled in such manner
that new credit issues shall not increase faster than
the supply of goods. The aim should be an increase
in real income; that is, the distribution of greater
quantities of goods on a stable level of prices. To
achieve this dynamic balance on an expanding program
 requires the codrdination of data from many
sources in indexes of production, trade, employment
 and consumption. It will require the coordi-