The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-21
HUGE CREDIT
FUND ON WAY
TO AID trade
House and Senate Agree on
ReVamped Finance
Measure.
HELPS CLOSED BANKS
Money to Be Available for
Railroads and Other
industries.
BIZ LYLE G. WILSON
limited Pres. stan Correspondent

p. Watson, senate majority leader,
today told the United Press that
the house would approve the ad-
ministration's 2,0OO,OOO,OOO emer-
eency credit relief bill before ad-
dourning and that the senate would
act Friday.
The compromise bill, with its pro-
visions extended to the proportions
of an omnibus relief measure, was
approved shortly before noon by
senate and house conferees.
Senator Walcott (Rep., Comm
presented the conference report to
the senate at 100 p. M, but said
no effort would be- made to consider
At until the house had acted.
House action rested with Chair
man Steagal of the banking COM
mittee, who said he was disposed
TO let the bill lie over Friday.
Bank Bill Approved
The house gave final approval TO
The bill adding $125,000,000 to the
capital Of federal land banks, then
went ahead with debate on the ag-
riculture department appropriation
bill. This can be laid aside at any
time. Speaker Garner said he was
ready to proceed with the recon-
struction measure, but left the deci-
sion to Steagall
Watson and Chairman Walcott OF
Che senate conferees called on
house leaders shortly after noon to
fix the legislative schedule for the
emergency bill Under the present
program it should reach President
Hoover for signature Friday night.
Mr.. Hoover is understood to be
ready to announce the names OF the
three Democrats who are to be on
the board of seven directors of the
reconstruction finance corporation.
Several Are Recommended
Several names we're urged upon
the President during the day for the
positions. Senator Harris (Dem.,
Coz recommended appointment of
Edward N. Hurley, Chicago Demo-
crat. M. B. Wellborn, former gov
ernor of the Atlanta federal reserve
bank, was Endorsed by Democratic
Leader Henry L. Rainey, Chairman
Steagall of the house banking COM
mittee and Senator Bankhead
&Dem, Ala.
Former Governor Angus Mclean
of North Carolina was recommended
as the type of man that the agri-
cultural interests of the country
would like to see on the corpora
tion's board.
The bill will underwrite exports.
1t will aid depositiors of closed
banks. 1t appears to supersede Mr..
Hoover's home loan bank proposal
There is $50,000O0O set aside for
loans through the agriculture de-
partment to individual farmers.
Charles G. Dawes, executive head
of the corporation, is ready with
skeleton organization plans. Office
quarters are being selected.
Will Advance Cash
The corporation is authorized to
receive a $500,000,000 revolving fund
from the treasury. 1t may issue
bonds or debentures for 81 800, 000,-
900 of additional capital The en-
tire $2,0O0,00O,0O0, in effect, repre-
sentS a government bond issue-an
unprecedented peace-time financial
operation.
The public is expected to buy the
&c
the issue will entice some of the
hundreds of millions of boarded
dollars from their hideaways.
The bill authorizes the corpora
ton to take the frozen assets of
financial institutions and railroads
and to advance cash. This vast
thaw of frozen securities and mort
cages is expected by the admins
tration to stimulate business gen.
orally. by making it possible for
legitimate business to resume more
nearly normal operation.
Many Are Eligible
Benefits admittedly will reach big
organizations first and will filter
down through the business Struc-
ture.
only 100000 900 is set aside for
reorganization of banks or aid to
depositors in closed institutions.
This is acknowledged tc be stop
gap provision. There is $1,000, 000,0 600
tied up in closed banks now. Sen
stor Walcott CRep., Conn.,, the bills
co-author, explained additional relief
would be rushed into law as part OF
the general banking legislation be-
ing prepared by Senator Glass
(Dem.. Va.).
Financial institutions eligible to
borrow are federal and state banks,
savings banks. trust companies,
building and loan associations, in
surance companies, mortgage loan
banks, credit unions. federal land
banks. joint stock land banks, fed
eral intermediate credit banks, agri-
cultural credit corporations and
Livestock credit corporations or
= L..