Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-23
BY CLINTON COFFIN,
Associated Press Financial Writer.

Associated Press Financial Writer.
Congressional indisposition to attempt
much serious reconstruction of Federal
law relating to national banking, to
currency or to the Reserve system at
this session Is becoming rather patent,
IL somewhat surprising. The Senate
banking and currency committee held
one session this week and decided to
postpone consideration Of all measures
before it until the tariff bill has been
dealt with by the main body, which may
mean q very long time. The House
committee, though convened twice by
Chairman McFadden, has found it adj
visable to conf1ne its work to relatively
minor proposals relating to details OF
liquidating insolvent national banks.
At the end of a year which has wit
messed some marked extension of chain
banking in the United States, which
has been rife with criticism of the Fed
eral Reserve credit policies emanating
from speculative quarters, and which
has seen some official Endorsement of
proposals to let national banks embark
upon extensive branch banking, 1t
seems rather likely that little congress
Sional action Is actually going to be
brought about. The views of committees,
plainly indicating that haste is not nee
essary, are rather likely in this field
to foreshadow accurately the disposition
of the membership of the House and
senate. There is q clear indication that
at present the countrys political leader
ship Is disposed to 60 most slowly In
approaching any reorganization Of mon
etary or banking law.
The Glass Bill.
Nevertheless, Senator Glass, Demo-
crat, Virginia, and former Secretary Of
nrARA0ad
into a single bill provisions covering
several Of the amendments to national
banking law which have been advo-
Gated. While the text Of the measure
isn't yet completed, 1t can be said that
the Glass bill will probably include all
the ideas that have been seriously
worked out for making membership in
the Federal Reserve system more desir-
able to the average bank. Among these
points viii be a permission for national
banks to 90 into branch banking in
States where State institutions are all
lowed such privileges. Further, there
will be suggested q method Of giving
Federal Reserve member banks larger
proportion Of the systems earnings than
they now get, while Senator Glass also
Is understood to be proposing to restrict
tional field. This last matter is covered
b va series Of measures advanced in the
House and now gets the additional pres
tige of being supported by the Virginia
Senator, who was associated both with
the foundation of the Reserve system
and with its conduct during q crucial
period.
out Of the $4,000 banks in the United
States something under 5000 have been
aflliated with the Reserve system, and
there is much discussion as to the adj
visibility of encouraging the adhesion
of a larger proportion OF deposit insti-
buttons. In spite of the conspicuous
progress of chain banking, 1t does not
appear that more than 1900 separate
banking institutions are as yet incor-
porated in the linking up, and there
are more State banks than national in
cluded in chains. There will probably
be q contest over the Glass BILL but
there is now rather great likelihood that
not much change In banking law will
be voted until President Hoover's sug-
gestion as to the need of more study In
the matter is carried out.
LOree Projects.
Railroad people have been much inter-
ested in the prospects raised by the re-
cent decision of the Interstate Com
merce Commission allowing the Della
ware & Hudson Co. to separate its rail-
road property from its security hold
ings, with the resultant creation of q
holding corporation with some $50 ,000,-
900 of free assets. The most notable
personality in the guidance Of the Della
ware & Hudson is L. r. Loree. who has
sponsored whole series OF projects for
railroad consolidation in both Eastern
and western territory.
While the Loree plan to fuse the Kan
saS City Southern, St. Louis Southwest
ern and Observation-Disclosures into
single unit was turned down by the COM
mission, he can be credited with adj
vancing three other designs that have
considerable life yet. One of these would
permit the Delaware e. Hudson to take
over a series Of terminal properties in
Eastern territory; another would con-
struct through the New York, Pittsburgh
6S Chicago Co. a new line across Penn
sylvania, while third, somewhat ac-
cepted by the recent commission general
consolidation plan, contemplateS the
building up of the Wabash system into
q new and much more important East
ern and Southern trunk.
1t Is the obvious thing about railroad
consolidation that no progress can be
made in It until financing capacity aS'
to each enterprise has been demon
strated. And now that the commission
has assented to the creation of the Della
ware d Hudson Holding Co., which quite
oPpdECuCly increases Mr. LOree scope
OF action in seeking railroad control,
there will be much curiosity as TO how
he and his associates win use the new
powers.
$3.50 Gold Piece.
1t is a rather odd fact that the very
popularity with the international public
OF one American coin, the $3.50 gold
piece, has induced Secretary Mellon to
demand the cessation of its coinage,
while congressional committees have al
ready taken the preliminary steps to-
ward acceding to the demand. AS Rob-
ert j. Grant, director of the mint, points
out, use OF gold as money under modern
conditions is practically ceasing. Ex-
cept for a sporadic circulation during
the Christmas season. the country's
gold coins Enthusiastically spend all
their existence In Treasury or bank
vaults. The IS, $40 and sac coins are
quickly displaced by paper after each
Christmas issue.
But the $2.50 gold piece has q curio
value In this country, and apparently
also . boarding value all over Asia. It
has been noticeable fact that when
once issued. this coin does not come
back Issues of 1t in preceding years
have attained A ureYnilYfn value and AZ