Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-07
PRESIDENT GIVEN
TASTE OF DEBATE.
Congressional Delegation
Shows Hoover How Sub
jectS Are Discussed.

B. the Associated Press.
President Hoover knows now what it
Is like to b. the center of congress
Sional debate.
He got a mild taste of it last night
when he submitted his economic emer-
eency program for discussion to 80 Sen
atprs and Representatives
Sitting behind small desk at one
end of the we'll filled room, the Presi-
dent was surrounded by the bipartisan
congressional delegation which occupied
the comfortable upholstered chairs and
sofas The crowded room became warm.
Tobacco smoke filled the air.
Ogden Mills, undcrsecretarv of the
Treasury, sat near the Chief Executive.
Secretary Mellon took a back seat and
found himself near one of his Demo-
cratic predecessors in the Treasury.
Senator Glass of Virginia. 1t so hap
pcncd. that Senator Glass was one OF
the more active in the debate which
followed the reading by the President
OF his proposals.
Agree in principle"
The Democratic leaders of the Sem
ate and HouSe-Senator Robinson OF
Arkansas. and Representative Garner
of Texas. respectively-were on thelr
feet also several times. 1t was they VINO
Informed the President that While they
considered politics function OF Gov
ernmcnt. they had no intention OF play
arc pa!itics with financial distress.
49, ~, oe tho session came to close
several of the Democratic Spokssmen
emphasized to Mr.. Hoover and their col
leagues that they were agreeing to tAe
program only in principle. .
The discussions were carried on IN
moderate voices and without bitterness
of any kind. Some Of the spoken
words brought laughs, although the serl,
Ousness of the subject was recognized
BY all.
Mr.. HoOver's disclosure at the end OF
the economic program that he INTENDED
to discuss the international debt suS-
pension stirred up the most extended
and spirited exchange OF the night.
Against Debt Discussions.
Chairman Borah of the Senate For
eicn Relations Committee was promptly
on his feet asking if Mr.. Hoover's state
mont meant to imply that those present
approved any extension of the present
hCiiCay. Representative Garner Vigor-
ously spoke his views against any eX-
tenrion. He reminded the President
that he had not approved even the one
year debt holiday now in effect.
The President was reported as hope
9ul of support of the group in his pro-
pOsal to discuss, at least, the debt suS-
pension with Premier Laval of France.
The congressional ConfereeS, however,
asked him to announce such plans on
his own responsibility
Senator Glass was the first to speak
up during the reading by the President
of his plan. On the matter of broad
ening the base of discountable paper
by the Federal Reserve System. he re-
minded that such plan was now under
consideration by the Senate Banking
Committee
He also warned against public expec-
tation Of too great a broadening of the
authority for diScountng paper.
Favors Conservative Change.
Senator Walsh. Democrat. of Mon
tana, inquired of Senator Glass what
paper he would regard as objection ible
for discount by the Federal Reserve
System and the Virginia replied with
examples. He left the impression that
he would favor only a conservative lib
eralization of present law
Representative Luce of Massachu-
sets, a Republican member of the
House Banking Committee. insisted that
the proposal for recreation of the War
Finance Corporation be approved only
IF necessary He was joined by sew
eral Democrats in this contention.
which was accepted
The irrepressible "Jack" Garner
1lghtened the seriousness of the meet =
ing by facetiously remarking that the
Democrats we're helping the President
write his message to Congress. This
was received with laughter
A proposal for increasing the capitali-
cation of the Federal land banks
brought some debate. 1t developed a
for a moratorium to the farmers owing
money to these banks. This was quick
J. challenged by Senator Glass.
Might Destroy System.
He called attention that the bonds of
these banks were privately owned and
that a moratorium for the per cent
OF borrowers who were unable to meet
their payments would result in possible
destruction CT the system That ended
consideration of the farmers mcrator-
ium.
Secretary Mellon frequently got into
the discussions. He took part in that
over the land banks. There was some
question as to how increased capitaliza-
tiCn-eXpected to amount to S60000,-
000-Will help the farmer borrowers.
Mr.. Hoover, when he did not reply to
questions of the inquistive congressional
group. would call upon Secretary Mel
lon, Mr. Mills or Eugene Meyer, gov
ernor of the Federal Reserve Board, for
data at their tongues tip.
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