Washington, Jan. 31.
Mr. Henry Morgenthau, Secretary of the Treasury, told the press here to-day that financial aid to small businessmen was a vital necessity in recovery from the current business recession, Questioned whether the Government should extend such financial assistance to small businessmen, Mr. Morgenthau pointed out that some facilities for such help already existed. He pointed to the Reconstruction Finance Corporation, the Federal Reserve Banks and the Federal Housing Administration as examples of Federal agencies designed to assist small business.
"What else can be done I don't know off hand," Mr. Morgenthau said. He added that other Federal agencies were studying the problem. He said he did not believe the elimination of bank stock holding companies, recommended by President Roosevelt, would have a deflationary effect on the country.
"If we follow the plan of Senator Carter Glass, Democrat of Virginia, under which such companies would be given five years to dispose of their holding, T believe they would have ample time to find a market for their bank shares," he said.
Mr. Morgenthau disclosed that the Treasury Department was prepared to buy 5,000,000 ounces of Mexican silver and 5,000,000 ounces of Canadian silver during February.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.