Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-22

the stock market during financial
stringency several months ago. for
which Mitchell has been assailed by
Glass
The Virginian asked how the tariff
had anything to do with the unprece-
dented volume Of brokers' loans
That was only one feature OF this
development" Kent replied, adding.
The brokers' loans were good and were
one lost a dollar"
He asserted brokers loans was a
good investment for banks.
Glass Explains Interest.
Glass said his interest in the matter
| was that of preserving the integrity
of the Federal Reserve System" adding
that the law had been violated in New
York.
Don't you know that stock after
stock was advanced away beyond the
earning power of industrieS?" Glass de-
manded.
yes" Kent replied. explaining that
his bank would not accept the stock as
collateral at those high values.
Obedience to the law might have
averted the present condition instead Of
aggravating it," Glass asserted, and
then inquired how a Senate not yet
assembled" could have run brokers
loans up year ago.
You assigned as cause so-called
coalition in the Senate which had not
met a year ago" he asserted.
The witness said the Interests OF
industry" were affected adversely by
failure of the Senate to pass a tariff
bill
Says Industry Grew Restless.
Industry became restless when 1t
became apparent the Senate would not
pass a tariff bill" he added.
Chairman Caraway pressed Kent 10
name zone man" with whom he had
talked in reaching his opinion that the
Senate was i'll measure responsible
for stock breaks.
1T would be unfair to name one
man because l talked with hundreds
Kent replied.
IT know the reason" Caraway in
terrupted. You're afraid we'll call him
down here and he will leave you up
in the air."
Glass asked how, il stock market val
ues were not fictitious, two billion and
half dollars In paper profits could
have been wiped out recently.
They are paper profits until they are
taken" Kent replied.
interjected.
The vice of this whole transaction, +"
Glass asserted, lis outside Federal Re-
serve banks dumping money into Wall
Street for betting purposes. Banks from
all over the country were sending money
into the gambling maelstrom."
Can't Say 1t Was Done.
You're not simple enough to say that
was not done, are you?" Glass asked.
II can't say 1t was DONE" the witness
said, because l have no official infor-
nation"
Senator Borah. Republican, of Idaho,
a committee member, then took up the
questioning.
LAS a matter of fact. the intention
of the Senate coalition was not to touch
the industrial schedules at ALL" he re-
minded the witness. do you know of
any industrial rate the coalition has at
tempted TO reduce?"
II have made no study Of the tariff"
Kent answered, because 1 am not a
tariff student. have been studying
the psychology of the people"
When the Senate is working on the
tariff bill" he continued, land reaches
a point where 1t cannot function, the
persons interested in the tariff become
disturbed"
He had not read the tariff bill he
added, but had read of the proceedings
in the newspapers. He did not know
how many items the Senate had
passed on.
BOrah Holds Words Unfair.
do you think it is fair for a man
in your position to denounce the SEN
ate when you haven't undertaken to
advise yourself as to what 1t has done?"
Borah demanded
THE details may not have anything
to do with the situation as a whole !"
Kent replied. UNLESS I am mistaken
there was time when the majority of
the Senate had bill which could have
been passed If a majority had stood
for it."
Borah wanted to know If Kent was
any relation to Joseph r. Grundy.
president of the Pennsylvania Manu-
facturers' Association.
No" he said.
"You ought to be-" Caraway asserted,
you're kindred spirit"
The witness said the people of the
United States elected a President
whose views are we'll known"
What are they?" Glass shot back.
Kent then said he did not know
President Hoover's position on the
whole bill"
Caraway inquired what kind of a
tariff revision the President wanted and
Kent said he understood he wanted ag-
ricultural rates revised.
Rising and leaning across the table
Borah, leader of the Republican in
dependents, shot question after ques-
ton at the banker
Are you in position to pass judg-
mPnf I1ry
the coalition in the Senator" asked
Borah.
mo, I wouldn't attempt to pass on
that
Kent Cites Time Used.
Kent reasserted that the time re-
CURED by the Senate and other develop
ments lied to the conclusion that the
Senate couldn't function
We'll, when you consider there are
$1,000 rates, how did you come to the
conclusion that the Senate couldn't
function?"
1T can't. can ftp" asked Kent. 1T
has adjourned. hasn't it?"
Yes. it has adjourned. but that is
since you made your famous speech"
Borah continued that the the Senate
had been working on the bill only two
months and asked If Kent knew of
ANY rates that would hurt business"
The witness answered that business
people did not know what to expect"
saying he understood that the coali-
ton did not intend to change industrial
rates"
How would you pass tariff bill
quickly with $1,000 items?" Borah
asked, adding the Senate had been
working on the bill "only two months"
do you know of any rates that would
hurt business" Borah asked.
THE business people didn't know
u,haf IN avpant Knnt caid adding that