Evening star., 1932-07-12
Banking Committee Votes
Measure Written as
a Substitute.
PRIVATE LOAN PROVISION
CARRIED IN LEGISLATION
Federal Recerve Banks Would
Make Advances-House Drafts
Another Proposal.
BY the Associated Press.

The new Wagner unemployment re-
lief bill was approved today by the
Senate Banking Committee and pre-
pared for consideration in the Senate
later this afternoon.
In the House, meanwhile, prepara-
tions went ahead also for drafting
measure along lines wanted by the ad-
ministration.
At the same time, President Hoover
received assurance from the House
Democratic and Republican leadership
that a relief bill suitable to him would
be passed by the House before tomorrow
night.
This word was brought to the White
House by Representatives Rainey of Il
linois, Democratic leader, and Hawley
of Oregon and Treadway OF Massa-
chusetts Republican members Of the
Acting Secretary Of the Treasury Bal
lantine sat in during the Presidents
conference with these House leaders.
The Senate committee made virtually
no change in the bill which was in
troduced in the Senate late yesterday
by Senator Wagner, Democrat. of New
York to replace the S2,122 100000 bill
vetoed by President Hoover.
1t voted an amendment, however, to
reorganize the Reconstruction Finance
Corporation in accordance with the
Presidents recommendations in a spe-
cial message to Congress yesterday, in
creasing the membership of the board
by one.
Another amendment was voted by the
committee to prevent loans by the cor
porations to financial institutions, the
officers Of which have been members of
the corporations board within year.
Private Loans Provided.
Included in the new bill approved by
the committee is authorization for loans
to individuals through Federal Re-
serve banks when the Federal Reserve
Board approves.
The committee retained in the bill
the same restrictions on the 1922 ,000,-
600 public works program that were in
the old bill President Hoover in his
veto message said they were not ade-
quate.
The amendment for recognizing the
corporation would eliminate as mem
bers Eugene Meyer. governor Of the
Federal Reserve Board, and Paul Bes-
tor, farm loan commissioner, as men,
bers of the board.
Unanimous approval was given to the
amendment except that Senator Glass,
Democrat. of Virginia, objected to in
creasing the boards size.
The relief bill as it now stands, ready
for Senate consideration, still carries
total relief program of s2,100, ,000, 900.
The only major change from the bill
which the President vetoed, is substi-
tuition of the provision for individual
loans through the Federal Reserve
Board for loans through the Recon-
struction Corporation.
The Senate has given unanimous con-
sent to take the bill up as soon as it
has disposed Of the pending home loan
discount bill, expected sometime today
House Drafting Measure.
On the House side a subcommittee
was named by the Ways and Means
Committee to draft a relief program
conforming in the main to the Presi-
dents ideas. The committee took the
attitude it should have relief measure
ready in case Senate proposals were
unacceptable.
The subcommittee, composed of
Doughton, Democrats, and Hawley and
Treadway, Republicans, went to work
Immediately.
Meantime, in a formal statement,
group Of House Progressives protested
against the Presidents veto and again
urged large public works program.
They were Representatives La
Guardia, Republican, Of New York;
Kvale, Farmer-Labor, Minnesota;
Keller, Democrat, Illinois: Norton,
Democrat, of Nebraska, and Amlie,
Republican, Of Wisconsin.
The statement said the Reconstruc-
tion Finance Corporation had loaned
or was committed to loan $1,054,814,-
1869 and that no visible or tangible
benefit to unemployment or agriculture
has been produced.
The five urged "a complete program
Of public works of sufficient magnitude
to check the downward spiral Of de-
dation."
Democrats accepted the presidential
attitude without vote in either House
to override his veto.
Leaders of both parties in Senate and
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