The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-02-04
BANK MEASURE
/ CHANGES UP
AGAIN
Senate Banking and Currency
Committee to Continue
Hearings. on Bill
By HARRY. GUsACK.

Further safeguards to govern pos
sible transactions of national banks
In the real estate investment field
are expected to be reported ton1or-
row by the Senate. Committee on
banking and currency in continuing
hearings on the McFadden National
Bank bill
Tentative action in an executive
session Of the commfttee today CONF
templates the omission from the
bill as it is to be reported to the
Senate Of Section 8, and possibly Of
Section 10, ana the modification Of
Section IL.
Section 10, contemplates revision,
OF the revised statutes. 1t is de-
clared by some of the members OF
the committee that while efforts
are being made to clarity the
language OF that section in some
aspects. It may be that this re-
suit viii be defeated in complica-
tons that may otherwise result.
There is some sentiment for lenv-
ing the section as now in the law
leaving revision to some future
date. This section in the bin seeks
properlys to define the exceptions
to the 1lnitat ton that certain kinds
OF paper shall be subject to loans
60 the extent Of 10 per cent only.
Section is one of the chief
storm centers Of the bill. It defines
the conditions under which state
banks may =be admitted to the
Federal Reserve system. II that is,
omitted from the bill as reported
TO the Senate, it is said, much Of
the oppogition to the bill as a whole
win be dispelled.
It Is proposed to provide further
safeguards around possible trans.
actions Of national banking institu.
tons in the real estate investment
field. There is also move to
liberaliSe the provisions so as to
place q limitation of one-half, In
stead Of one-tffrd, OF the time de.
posits upon the power OF such
banks to loan on real estate
security. It is explained that there
Is in question the. way in which
these loans are 10 be tied mp to
the time deposits OF the banks, the
idea being thatSound banking re-
Quires long time loans should be
handled tunt OF the proceeds Of
time deposits and that demand de-
posits should not be so used in the
acquisition OF investments mot
readily convertible into cash.
Some OF the other provisions Of
the bill are also to he CLARIFIED and
In the resulting form it is antiei-.
pated that the measure viii be ac-
ceptable to the Senate. A formal.
report to the Senate before the end
Of the present week now is .ex-
peeted: and inasmuch as the bill ia,
contained in the program of the
Senate steering committee for con
gideration before the end Of the
that the Senate win be asked to
consider the measure at an early
date.
Bond Notes.
Kidder Peabody and Company
offered today new issue Of 81, 000,-.
900 Kansas City joint stock land
bank per cent farm loan bonds
due November 1, 1854. at 103k to-
yield Abs per cent to the optional
date and 5 per cent thereafter.
Offering of 81 100000 Kansas
City, Miss, gold per cent school
district bonds due jury I. 1871. was
made today by the First National
Bank, the Detroit Company, Inc.
Blodget and Company. Phelps Fem
& Co., and the Mississippi Valley
Trust Company at prices to yield
40 per cent.
An issue OF 100000 Randolph
county, N. c., direct obligation AZ
Her cent bonds were offered today
By a syndicate headed by Henry
Lindsey & Co. The bonds are due
February l., I944-1953 at prices to.
yield ass per cent.
Bond dealers including the; bond
departments of the banks, sold
more than $500, 000, 900 worth OF
new bonds in January and closed
the month with shelves bare.