Evening star., 1932-04-01
BANKING BILL HELD
|NOPPORTUNE NOW
Opposition Emphasizes Con-
tradiction to Little Credit
Now In Use.
BY MARK SULLIVAN.

Lie eNtIeIneiy important GlheS DauE-
ing bill, which amounts to a revision
Of the Federal Reserve act and Of the
countrys banking structure, Is at q
point where 1t must be either acted
upon or put off to future session
Senator Glass says 1t will be enacted
1t Is probable, however there is more
opposition to the bill as of the present
time on the part OF Senator Glass
friends and associates than he himself
Is permitted to learn. 1t is probable
that some who have doubts about pass
ing the bill at this time are reluctant,
or extremely restrained in saying So
but will nevertheless express their mega
tive conviction II and when a roll call
comes.
This curious situation begins with the
exalted esteem for Senator Glass per-
sonally which Is literally universal in
washington. The Virginia Senator Is
"a years old. he has been Secretary of
the Treasury and he was one of the
authors Of the Federal Reserve System
as originated in 1914 Personally his
character, his ability and his intellec-
tual integrity are of a sort that evokes
universal admiration, and reminds the
present. day of the period when there
were real Romans in the Senate The
AoCI ClldG MI NJldSS Is ABOUT JIc most
iraScible man in Washington works in
his case Tor greater affection for him
He himself makes public humorous ref
erences to his combativeness and to the
efforts of his legions of friends to per-
suade him to soften his frequent and
explosive asperities.
Friends Against Bill.
Because of the Virginia Senator's
nyR
ton in public life, banking bill writ
ten by him automatically commands
high respect. His present bill however,
has become sufficiently well known to
make 1t clear that under present con-
oltlons many who have the highest
admiration for the Senator will hardly
support his bill.
The objections to the Glass bill are
mainly objections as of the present
time. That any banking bill written
by Senator Glass is sound hardly needs
saying. He is ultra orthodox and ul-
ira conservative. Under different con-
ditlons his bill probably would, with
some changes, be enacted. The queries
raised about its desirability at this time
can only be understood by recalling the
circumstances under which Senator
Glass was moved to write it.
Almost exactly three years ago there
was boom on the New York Stock
exchange. 1t was recognized to be
dangerous by the Federal Reserve
Board at Washington. The board un-
dertook to check it by a public ad-
monition to the New York banks which,
mainly, we're providing the funds with
which the boom was financed. This
admonition the New York banks pub
llcly and rather jeeringly iouted.
Haughtily they said. in words and by
their actions, that, interpreting their
duty for themselves. they would con-
tinue to provide their customers with
the funds financing the boom.
The head of the National City Bank,
Charles E. Mitchell, pointedly and curt
ly told the board in effect, to take the
air and be on its way. He said that
as for his bank. I'VE feel that we have
any Federal Reserve warning or any
thing else"
Senator Glass Aroused.
That episode outraged Senator Glass
TO the highest degree of his exceptional
capacity for indignation The Federal
Reserve System was his child; now.
not only was 1t being perverted from
Its function, but its authority was being
nouted. With degree of feeling equal
TO Mr.. Mitchells own, and more acidly
phrased, Senator Glass said publicly
that the New York banker should be
disciplined by the Federal Reserve
Board.
1t was at that time and in that
spirit that the present Glass banking
Dill was conceived. The original draft
was written in April, 1929. The inter-
venlng period has been spent in pro-
ionged hearings and other delays. The
Dill was then and is now designed pri-
marlly to prevent any such stock ex-
change- boom ever recurring in the
future. 1t. is designed to prevent ex-
panslon OF credit That the bill is
admirable for these purposes is ad-
mitted. The difficulty is it comes for
ward for enactment at time when
conditions are exactly the reverse of
a boom and when the country's funda-
mental need is more credit instead of
less. Many bankers, business men and
Senators, fully as sincere as Senator
Glass, are appalled, at the idea of en-
acting at this time bill which would
IN their judgment, cause some contrac-
tlon OF the little credit now in use and
certainly would restrain future expan-
son of credit. They would be glad 10
nave the bill enacted a year or two
from now.