Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-26
ASK TWO BILLION
TO AID U. S. BANKS
Glass and Buckley to. Back
Plan at Early Session
of Senate Group.
~ the Associated Press.

~ the Associated Press.
Government aid-$2 600, GOO, 900 worth
in loosing the frozen securities Of the
Nations banks is the proposal of two
Democratic leaders for experimenting
President Hoover's emergency program.
Senator Glass, Democrat, OF Virginia,
announced he would call the Senate
Banking Subcommittee together ahead
of the meeting of Congress to consider
this gigantic relief plan of Senator Bulk
ley. Democrat, of Ohio. He favors 1t.
The program purposes absorption Of
the vast bulk of real estate security and
loans on bonds and stocks which are
freezing" Americas banks. Under 1t,
the 50 900 900 900 or more which might
be necessary for the Federal Land Banks
rediscount of these securities would be
raised by the Government through q
bond issue.
Opposed 10 "Tampering."
Whether this Government financing
venture would be made q permanent or
an emergency affair was left to con-
gressional elaboration.
But both Senators Glass and Bulk
ley emphasized that the program con-
templated no "tampering" with the
Federal Reserve System to meet the
DTbSHnk GTlETkCIIGy. LILO SNNP was 01S
gested in the program OF President
Hoover calling for broadened base Tor
paper which is eligible for rediscount
by the Federal Reserve Banks
Announcement by Senator Glass that
he would call his Senate Banking Sub
committee together about November 20
foreshadowed early consideration by
Congress Of the emergency banking re-
lief proposals already before the country.
EawaakA~ Taa1k1au a tina nfhnY nmFf1A~
cratic member of this subcommittee
Both he and Glass, as members of the
House, helped frame the Federal Re-
serve act and their voices Will have
strong influence on the congressional
deliberations.
Hoover Calls Bankers.
The Democratic program intends no
interference with the Hoover emergency
plan agreed to at q bipartisan confer
ence in the White House, except for the
strict limitation on opening the doors
of the Federal Reserve System to new
brand Of paper.
group of bankers yesterday to determine
the progress which the emergency $780,
100000 credit corporation Is making.
Mortimer N. Buckner, New York
banker; George Harrison, governor Of
the New York Federal Reserve Bank;
George M. Reynolds OF Chicago, Henry
M. Robinson, Los Angeles banker; IN
dersecretary Mills of the Treasury and
Governor Meyer of the Federal Reserve
Board attended the white House break
fast
Senator Buckley, with the support of
Glass, suggested the Federal Land Bank
system for administering the relief
rather than spending tine in the or
ganization Of a new organization. He
would permit the banks TO purchase or
rediscollnt loans made on real estate
security, either agricultural or urban,
or even permit them to purchase or
rediscount loans based on bonds and
stocks"
Two Billion Is Needed.
Believing 81, 900, 900 900 or more neces-
sary TO finance the program, Buckley
conceded this would require o Govern
ment bond issue.
IF there are objections to more bonds
and TO higher interest rates on Govern
ment bonds" he said, 1T may at least
be said that such issues offer a greater
chance than anything else to draw cur
fency out of boarding, and that the pro-
ceeds would be certain to be invested at
q profit, BECAUSE no bank which might
be accommodated by being relieved of
its slow assets would have legitimate
cause to complain Of being charged
substantially for this accommodation.