Evening star., 1932-07-17
CONGRESS CLOSES
+ IN BITTER FIGHT
House Capitulates to Pass
Home Loan Bill With Ex-
panded Currency.
CONTINUED From First Page.)

Continued From First Page)
seeing in it release from deadlock. and
probable adjournment with little fur
ther delay.
The break followed a statement by
Representative Smell, the Republican
leader, that he preferred to vote for
the rider to having the home loan bill
killed. On previous votes Smell has cast
his strength against the Senate amend
ment.
The motion to accept the Senate's
clause was made by Chairman Steagall
of the House Banking Committee, who
said, 1T is obvious the House wants to
end a controversy which in its closing
hours presents a picture not attractive
to the people of the United States
Under the disputed amendment ma
tional banks would have the right to
issue currency against United States
bonds paying 3as per cent interest or
less
The home loan bill proper provides
for system of eight to dozen banks
which are to take home mortgages and
leans from building and loan associa-
tions, insurance companies and others
dealing in real estate paper so as to
relieve the pressure upon these COM
panies and relax their demands upon
home owners. with the expectation that
eventually this would make available
capital for loans to finance new con-
structlon.
Completes Hoover Program.
This Federal banking system was the
last of President Hoover's major recon-
mendations to Congress.
On the previous votes the House had
rejected, 221 to SO and 156 to l02, the
Glass provision for expanding national
bank currency. The Senate had voted.
A to 20 and 35 to 90, to insist on this
provision.
Representative McFadden. Republican
of Pennsylvania, was the principal
speaker in opposition. He said the
tional banks throughout the United
States" and that the House had been
visited by lobbyist from the White
House who informed the leaders that
if the House yields there was no
chance" the President would not sign
the bill.
Walter Newton, one of the Presi-
dents secretaries. had been on the floor
frequently during the evening.
Replying to McFadden. Smell said he
had been unfair to his former COL
league. Mr. Newton" He denied that
Mr.. Hoover had instructed the Repub-
licanS to yield.
The Borah-Glass rider, which would
permit the banks to issue a maximum
Of S1,108000,000 of additional national
bank notes against Government bonds
held by the banks, but not now avail
able for such purpose, also had been
attacked in the House by Representa-
tives Stevenson of South Carolina and
Goldsborough of Maryland as unsound
and q fake" which would be of no
real benefit.
Pleased in Senate.
There was furry of pleased excite
ment in the Senate chamber as word
came over that the House had receded
and broken the deadlock.
Senators were pleased not only that
the bill was saved, but that the session
was nearing an end which had been
threatened by the conflict. Senators
Borah and Glass, sponsors of the cur
rency measure, were surrounded by
their congratulatory colleagues.
Immediately after the House had
agreed to the Borah-Glass rider. Rep
resentative Taylor of Colorado offered
on the.part of the Appropriations Com
mittee the bill carrying 100000 for the
use OF the newly created Home Loan
Bank Board during the fiscal year. OBJ
lection to immediate consideration was
raised by Representative O'Connor of
New York, and Taylor moved to sus-
pend the rules and pass the resolution
OConnor. angered, sought to make
point Of order against the motion, but
was overruled by Representative Nc
Duffie of Alabama, the presiding officer
O'Connor was incensed because Speaker
Garner had passed him over in ap-
pointing presiding officer for the
House in GarnerS absence. AS ranking
Democratic member of the Rules Com
mittee, O'Connor was in line for such
selection.
After wrangle the House passed the
appropriation for the Home Loan Bank
Board without record vote.
Couzens' Move Fails.
When the $500 900 bill came to the
Senate, Couzens let it be known he
would object to unanimous consent to
take it up for immediate action. Under
the rules of the Senate. his objection
would have forced consideration of the
bill over to another day.
In order to circumvent this, Chair
man Jones of the Appropriati Com
mittee called up House bill on the
calendar for closing part OF virginia
avenue southeast, in Washington. He
moved to strike out all after the enact
ing clause and inserted the home loan
bank appropriation, but cut it down
to s250,000.
Incensed by this strategy. Couzens
then launched his attack on Senator
Watson because of the trick" which
had been played.
Senator Watson accused the Michi-
ban Senator of seeking to delay this
legislation and Couzens. white with
anger, retorted that he did not intend
to be chastiSed by Senator Watson.
THE Democrats in Indiana will take
care of you in November" Senator
Couzens shouted at the majority lead
er. He said there had been no leader
ship on the Republican side Of the
chamber
THE methods of the Senator from
Indiana are well known to the coun-
try, to his colleagues and to the voters
of Indiana" continued Senator Cou-
zens. The Senator from Indiana was
himself opposed to this home loan
bank bill. would not have arisen had
SPECIAL NOTICES.