Evening star., 1932-03-30
Senator Declares Present
Opposition Similar to That
Against Reserve System.
VIRGINIAN CHARGES FOES
HAVE ORGANIZED FORCES
Pittsburgher Testifes Sweeping
Changes Now Would Be In
advisable for Country.
BY the Associated Press

BY the Associated Press
charge that opposition to the Glass
banking revision bill has been inspired
by Stimulated propaganda" was made
IN Senate Banking Committee hearing
today by Senator Glass, Democrat, Vir-
ginia.
Glass shouted the accusation during
testimony by James Francis Burke
general counsel Of the Pittsburgh Clear
ing House. opposing the bill, which is
intended to curb stock speculation.
Bankers from all over the country
have come to protest" said Burke.
Stimulated Propaganda.
yes" cut in Glass sharply. land
they were brought here and organized
to protest, and think you were, too.
Didn't we have the same kind Of
protests before the Federal Reserve
law was enacted?
That shows exactly how much i'm
portance should be attached to stimu-
lated propaganda"
Burke replied that the bankers
have right to come here" and have
done so voluntarily.
Burke, general counsel of the Re
publican National Committee and a
former Republican member of the
House, presented a resolution Of the
Pittsburgh clearing house opposing the
glass bill as ''unwise and unnecessary"
He asserted a sweeping revision of
the country's banking system is par
ticularly inadvisable under present eco
nomic conditions.
Should Be at Home.
As previous witnesses have done, he
said the bill would nullify the benefits
of recent Federal reconstruction meas
ures by contracting credit and would
centralize too much authority in the
Federal Reserve Board.
Burke said it "ou2ht not to be neces-
sary' for the bankers to have to come
here and said they should be at home
problems
Glass grimly agreed that is where
they should be.
Burke was asked directly by Senator
Barkley, Democrat, of Kentucky,
whether he appeared as attorney for
the Republican National Committee.
The witness replied in the negative,
saying he testified on behalf Of the
Pittsburgh Clearing House
Howard Bruce, chairman of the Bal
tlmore Trust Co., also testified against
the BILL saying mo legislation should
be proposed that is even open to the
suspicion OF retarding our recovery
from the present business stagnation." !"
Testified Two Hours.
For two hours yesterday, Eugene
Meyer, governor Of the Federal Reserve
Board, sat before the committee out
lining changes he thought should be
made in the bill.
Il begin to think the Federal Reserve
Board and this committee are not so
far apart" said Chairman Norbeck,
when Meyer had finished
Who said we were, SENATOR" asked
Meyer, smiling.
Il do" replied Senator Glass amid
laughter. The veteran Virginia Demo-
crat heads subcommittee which drew
up the measure after more than a year
Of study.
Sweeping changes proposed unani-
mously by the Federal Reserve Board
included elimination of a provision re-
strlcting loans by member banks against
stock and bond security and of Sec
tion increasing the reserves which
member banks are required to main
tain.
Meyer contended the collateral loan
limitation would not hit speculation and
would interfere with operation of the
Federal Reserve System. The increased
reserve requirement, he maintained,
would exert tightening influence on
credit conditions at times when it would
be contrary to the public interest"
On an important point not covered
in the bill-the daSirahilitv of a unified
system of National banking under Ma
tional upervision-GIass and Meyer
Continued on Page 2, Column %