Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-12
CONGRESS STUDIES
MARKET GAMBLING
Four Resolutions and Bill on
Trading in Futures Put
Before Lawmakers.
BY the Associated Press.

Since the Federal Reserve Boards
sharp warning directed against specula-
ton. Congress has turned its attention
to the trading in futures on the ex-
changes and today, four resolutions and
bill having some bearing on the situa-
ton were before the House and Senate,
or committees.
Senator Caraway's bill to prevent the
sale of cotton and grain in future
markets was on the Senate calendar and
already differences of opinion have de-
veloped concerning it. Senator Rams
dell of Louisiana sold the Senate yes
terCay that the bill would completely
destroy the cotton and grain markets
and had nothing to offer in their stead.
The Reserve board, in it's statement
issued last week. said emphatically that
steps were to be taken to prevent the
use of Federal Reserve credit for Specu-
lative purposes and almost Immediately
there was a precipitate fall OF values
on the Stock Exchange. Senators have
either praised the boards action, or have
been non-committal but criticism has
come from at least two members of the
House.
Representative Black of New York
has offered two resolutions asking an
investigation of the boards action and
In a statement he said he wanted to
know whether members of the board
had conferred with Sir. Montague Nor
man, head of the Bank of England who
was in Washington recently, before the
issuance of the statement.
McFadden Also DispIeased.
eff the financiers who approve of the
Federal Reserve Board action Black
said, believe that the gold supply of
the Bank of England should be built
up. let them do it with their own prop
erty and not with the property Of the
general public
Chairman McFadden of the House
banking committee also indicated that
he was not pleased with the boards
statement, declaring that he believed
the board should not concern itself with
the loan market.
The third resolution introduced In
the House was put forward yesterday
by Representative Brand OF Georgia
He asked an investigation by the House
banking committee of the loans issued
by the Federal Reserve Banks of New
York, Chicago and New Orleans since
1925.
The one resolution before the Senate
was introduced by Senator Heflin
Democrat, Alabama. He called upon
the Federal Reserve Board to suggest
legislation to check the increase ir
brokers' loans from Reserve funds.
Brookhart Holds Conditions Menacing
In discussion following the intro
duction of the Heflin resolution there
was little direct criticism of it, a warn.
ing being issued, however, by Senator
Barley of Kentucky against tinker.
ing" by Congress with the Nation!
credit system. Senator Brookhart o.
Iowa countered by suggesting thai
Congress prohibit member banks of tn,
Reserve system from issuing any loan.
to brokers. Brookhart said the present
situation was "the menace of our times.
This view was concurred in by Sena.
tor Carter Glass of Virginia, who
characterized Stock Exchange Specula
lion as gambling institution menacinl
the entire commercial structure" He
declared the Reserve board should have
issued its warning a year ago "befor,
the startling peak of almost $4,000, 900.
600 in brokers' loans had been reached
The opinion at the Capitol is that un.
less some action Is taken on the Cara
way BILL no legislation affecting specu.
lation will be passed at this session
The end of the session is approaching
and the four resolutions introduced
simply ask for suggestions or investi-
cations.