Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-07
Washington Ticker
BY CLINTON COFFIN,
Associated Press Financial Writer.

In spite of the campaign that has
been under way for several months to
bring about revision of national bank
ing laws, it was quite apparent yester-
day as the House banking and currency
committee met to deal with the subject
that no great need for haste in the mat
ter Is seen by legislators. There are no
bills yet written to, empower national
institutions to undertake radical extern
sion of branch establishments, though
the demand for such power has been
Endorsed by Controller Of the Currency
Pole AND remarked upon by President
Hoover.
The fact is, what Congress really
needs upon this subject is more infor-
nation, and expect that will be forth
coming in our regular legislative pro-
cedure," Chairman McFadden of the
House committee said 1T seems to me
that we shall be obliged to have a Sc
ries of hearings on bills introduced, or
to be introduced, and that in the course
of them we shall get the views of the
Federal Reserve Board and representa-
tive bankers on the outlook. The coun-
try as yet hasn't shown much signs of
interest in proposals to alter our bank
ing system, though the banking world
itself has. naturally. followed the sug-
gestions most closely. Whenever the
hearings do begin, assume that we
shall also be led to inquire into all the
phases of the credit Stringency last
year and its relation to speculation"
The one measure actually formulated
to meet the alleged need OF national
banks and other institutions attached
to the Federal Reserve system for aid In
coping with competition of State bank
ing institutions was advanced prior to
the committee session by Chairman
McF'adden. 1t proposes to enable re-
gional Federal Reserve Banks to pay
more than the present limit of 6 per
cent dividend on the capital stock they
have outstanding, all of which stock IS
held by member banks, step winch
has been advocated also in a somewhat
different form by Senator Glass OF Vir-
ginia, former Secretary of the Treasury.
Regional Reserve Bank earnings have
been increasing, but under present law
after surplus and per cent dividend
on stock has been earned the Federal
Government collects most OF the bal
ance as a franchise tax. 1t is the argu-
ment of congressional members inter
ested in the policy that membership IN
the Reserve system would be made SUD-
stantially more attractive If member
banks got larger dividends on their cap
ital investment in the regional institu-
tions.
In trade circles there is evident in
creaSing restiveness over the delay IN
the formulation by Congress OF the
country's new tariff policy. There seem
to be number of situations in which
thte lapse of time in fixing given rate,
rather than the rate itself, causes the
most business concern. How this WORKS
ia specific matter is revealed by Com
merce Department figures as to the I'M
ports OF single item-canned toma-
toes. For the IL months of 1929, ex-
Guiding December, American imports OF
this article, coming chiefly from Italy,
have amounted to 162,O00,000 pounds,
more than twice the 76,500,000 pounds
| of like materials imported in the same
period Of 1923, and total equal to
| about half the domestic production.
Few observers doubt that the expan-
sion in the tomato imports can be d.
rectly attributed to- the tariff situation.
The present duty on canned tomatoes is
Is per cent, and the House bill proposes
to make 1t 40 per cent, while the Senate,
following out the policy of emphasiz-
ing protection on agricultural products.
has voted so per cent levy. Thus there
isn't much doubt as to the congressional
purpose OF giving the producer great