Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-06

\
posal was being rushed through" and
demanded regular procedure forcing it
to lie over a day.
Demand Held Acmte.
Chairman Walcott of the Senate
Banking Committee pleaded for prompt
action. asserting the demand for the
relief offered by the measure is acute.
Senator Glass, Democrat. Of Virginia,
also urged Blaine to Withdrawn his OBJ
jections
Blaine commended the bill was aimed
Ito help the banks which are respon-
sible for the depression and to bolster
up the stock market" He assaileS
President Hoover for not calling spe-
cial session OF Congress and asserted
There is not a mouthfll Of food or a
job in this bill"
Prior to this delay the expectation
was expressed in administration quar-
tiers that President Hoover will have a
chance to sign the bill before the week
Is out.
Undersecretary of the Treasury Mills
conferred with the President about the
same time the Banking Committee
formally advocated prompt disposition
of the legislation to infuSe $4,000, 600
600 worth Of credit into the business
world.
AS it has been so often of late, tina
! topic between Mr.. Hoover and Mr.
Mills was the legislative outlook. On
leaving, the Undersecretary reported
the President encouraged by the speed
with which Congress has tackled the
emergency reconstruction and Federal
Land Bank plans He observed that
| No i,ay
signed this week.
Country Eager for Biil.
The Banking Committee report on It
was made public a while before the
Senate met.
1T may be stated conservatively."
the report said. that the country as
| represented by its most eminent bank
| ing, business and financial leaders Is
eager for the prompt enactment of this
| bill
There is substantial agreement
among those who have been consulted
that some step for the consolidation OF
efforts and the re-esta blishment of con-
fidence in the underlying foundations
| of business and finance is absolutely
essential
| 1AAAG tAAhS SbEp S4lOuRu &c LakSn WIFI
minimum of delay is the unanimous
opinion.
Time Is Big Element.
I Moreover, unless the machinery pro-
vided by the bill can be set in motion
without the loss of time, the oppoy-
tunity for good, which might otherwise
be accomplished, will inevitably be sac
riflced and the aid when of7c~c1 or
| la %o1 L. -
The report said, the record o. fall
ures for the past year C1s3D has been
unprecedentedly high, the banks closed
numbering 1880"
1t said the total assets Of banks which
have been closed since October, 1920,
now amount to more than 81 900, 900 aol.
Senator Walcott, Republican OF Con-
necticut, author of the bill has said the
measure Is broad enough TO permit loans
to closed banks that are solvent, al
though passage Of o separate bill win
be necessary to permit aid to closed
and insolvent banks. .F. r
| Serious Failures Cited
Several serious failures involving the
funds of great number Of depositorS
in many cities and towns throughout
the country have lately occurred" the
report continued.
This series Of failures must be stop
ped; and as soon as possible. Many
banks now in danger are not mem 5erx
Of the Federal Reserve System.
Other institutions, although mem
beers, have no paper eligible for discount
in the Federal Reserve, and hence ara
in no position to apply for aid
"Still other institutions have found
their assets so greatly impaired through
the depreciation of their market value
that their capital has been practically
exhausted.
Many Reserves Expected.
1.-THE new Reconstruction Corporation
now proposed will be free from most of
the conventional restriction upon lend
ing and wisely managed, should be able
to rescue many situations which other
wise will grow rapidly worse"
Observing that the rails are In an
extremely embarrassing pred1cament,"
the report said, the roads made the
same error that was committed by
many other large borrowers in sup
posing before the collapse of 1929 that
that they could with safety borrow
on short term and without much doubt
obtain renewals from the banks when
maturitieS occur, or failing IN that
could fund their obligations into long
term bonds.
/ I'm this they have been disappointed
owing to the overanxiety OF many
banks to keep liquid and owing also
to the lack of general confidence which
has kept many institutions from buy
ing even the most gilt-edged securities
at bargain prices.
Bond Market Low.
1T is becoming increasingly diff
cult to market the bonds of even the
best roads and the market price Of
railroad bonds in general. is becoming
SO depressed that the financial irsti-
buttons holding this class of paper are
unable to realize on them"
A letter from the Interstate Com
merce Commission showed net railway
operating income with taxes but not
fixed charges deducted had shrunk to
$685., 900, 900 from $685. 900 900 in 1880
and more than a billion the previous
two years.
Railroad bond maturities falling due
in 1882 were given as $70,0o0,00 for
class one railways.
The committees hearings showed "a
marked increase Of borrowing from in
surance companies by their policy
holders"
| Consequently this proposed bill is
needed to protect the insurance COM
| panies against the serious deteriora-
| ton in the market value Of their Sc
| curities," the report said, as they have
had to realize on their securities to
meet the demands.
Concerning committee amendment
to the original bill providing for loans
| to exporters of goods, the report said,
our export trade at present is without
! the usual and necessary means Of sup
! port essential to its normal existence"
BAND CONCERTS.
BY the United States Marine Band
| thie aveninp ar thu alIdifarturo Marine