Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-03
Washington Ticker
Ry the Associated Press.


The proposal of Controller Pole be-
fore the American Bankers Association
convention at San Francisco for lib
eralization and extension of the present
branch banking privileges OF national
banks was considered today with great
interest by Government officials and
members Of Congress.
The controllers plan for O program
If congressional legislation to inauglrate
a comprehensive study OF the problem
and to enlarge the present laws branch
provisions was said by high Treasury
Department officials to have received
the scrutiny of Secretary Mellon. 1t Is
believed that the Secretary undoubtedly
gave his approval Of the views set forth
to the bankers by Mr.. Pole. and because
of this sanction the controllers pro-
posals represented the official admins
tration viewpoint.
Congressional leaders In the field OF
banking legislation expressed their will
ingness to press for the enactment OF
branch bank liberalizing statutes at the
forthcoming regular session in Decem-
Der, but there was a suggestion in the
controllers address which Treasury
officials said indicated desire on the
part of that department to approach
the problem through careful prepare
ton and study before legislation was
enacted.
The suggestion-that Congress should
instruct the Secretary Of the Treasury.
the governor of the Federal Reserve
Board and the controller of the cur
rency to study the banking situation
and recommend to Congress what
boundaries should be set up in legisla-
ton for the extension of branch bank
ing-was said In Treasury circles 20
have met the approval of Secretary Mel
Ion and was possibly an idea proposed
by the Treasury head himself. In his
speech the controller discussed the ex-
tension Of branch banking areas in re-
lation to Federal Reserve districts or
State boundaries. but asserted that the
question should be solved on basis OF
economic areas" rather than political
boundaries and the designation OF eco
nomic areas would be the problem FOR
Congress to make in Its liberalization OF
the present law.
Undersecretary Mills Of the Treasury
characterized the proposals Of the con-
troller as chiefly educational" present.
ing to the bankers some OF the sugges-
tions which are being studied by the
Government.
Senator Glass of Virginia. ranking
Democrat on the Senate banking COM
mittee and former Secretary OF the
expressed approval of the controllers
idea to extend branch banking, saying
that he would support such legislation
at the regular session. He added that
he had attempted to obtain more liberal
branch banking facilities without sue
cess in the 1927 McFadden branch
banking act. Chairman McFadden of
the House banking committee, author
Of the 1927 act, also has signif1ed his
10 lHa
In his act national banks were per-
mitted to establish branches in all for
eign countries. American insular possess
sions and within corporate limits OF
cities where main bank was located.
Another viewpoint at the banking
convention-that the banks themselves
should alleviate the increasing amount
of credit to stock brokers and dealers
and not pass the buck" to the Federal
Reserve System-found appreciation
among the members of the Federal Re-
creased New York Bank rate did not
check the growth Of the brokers loans,
is understood to have assumed an at
titude of "watchful waiting" with the
objective of determining whether natu-
raj factors of credit flow would not
diminish automatically the brokers
loans.
The action of the Senate in voting
to restore the flexible tariff provision
powers to Congress after 1t had rested
in the hands of the President since 1922
undoubtedly will meet the stiffeSt of
opposition on the part of the House
Republicans, who last Spring overrode
similar proposal by 3-to-1 margin.
However, when the bill goes to con-
ference. 1t was predicted freely today
In congressional circles, there is a strong
possibility Of the two branches of Con-
gress reaching q compromise which
might divide the utilization of the
flexible tariff power between the Presi-
dent or the Tariff Commission and
Congress. How this division might be
formulated is at present in O some
what nebulous stage in the minds of
congressional tariff leaders-one idea is
that 1t would hinge on time limit In
which Congress would act on duties
under the flexible provision, and If this
time limit were exceeded the President
or the commission would have the right
to revise the rates.
But there is strong possibility that
If President Hoover signifies his disap-
prevail Of the Senate action the House
may uphold the Chief Executive and
force the Senate to reinstate in the bill
the provision much as it exists in the
present law. Earlier in the special
session, on the farm relief bill, the
House defeated the export debenture
proposal Of the Senate and the latter
acquiesced in favor of the House pro-
gram.
The American public each month is
witnessing the gradual whiting away
of the Federal Government debt, as
figures just issued by the Treasury De-
partment show. The gross debt Of the
Nation, less the net balance in the
Treasury general fund on September
80, was recorded at $16,3l2, All, a
reduction of $500 00O, 900 under the pre-
vious month when 1t stood at $16,717,-
OIL PAS. Compared to q year ago at
$1T,157, 49,. $50, the debt has been re-
duced nearly billion dollars. On Au-
gust 81, 1919, when the war debt was
IN HQS A7@ 500 ia