Evening star., 1932-01-10
CREDIT PLAN VOTE
assure TOMORROW
Action in Senate Promised
After Fight TO Widen
Loan Limits.

900, 900 reconstruction finance corpora
tion moved ahead yesterday toward q
certain vote In the Senate tomorrow.
After five hours of debate which once
wandered off into heated discussion OF
prohibition, the Senate agreed to act on
the mammoth economic rehabilitation
measure before the end Of its next
Legislative day"
At the other end of the Capitol the
measure made definite progress with
final approval by the House Banking
Committee and decision to bring 1t up
for debate on Monday.
In the Senate only two Of the many
amendments offered reached a vote.
Both were rejected.
Fails by Slim Margin.
One, by Senator Bratton, Democrat,
New Mexico, to permit the corporation
to loan to irrigation and reclamation
districts failed by the slimmest possible
margin with the 81 for and 81 against
1t. Under Senate rules an amendment
is defeated unless majority votes
for it.
The other, by Senator Jones, Republi-
can, Washington, would have made
shipping firms eligible for loans by the
corporation on certification of the Ship
ping Board 1t failed by vote of Is
TO 81.
Most OF the amendments awaiting
action seek to add to the list of tnstitu-
tions eligible to receive loans from the
huge Government credit agency.
One by Senator Ashurst, Democrat,
Arizona, would make it possible for any
citizen unable to obtain loan through
the usual banking channels to procure
the money from the corporation.
Another, by Senator Smith, Democrat,
South Carolina, would add 5000, 900, 900
TO the corporations funds. the sum to
be loaned to farmers with liens on their
crops as security.
Asks Loans for Cities.
An amendment to provide loans TO
municipalities for temporary financing
was introduced by Senator Copeland,
Democrat, New York, who read tele-
gram from Mayor James j. Walker OF
that city in support Of it.
In addition to the finance corpora
ton bill, two other features OF PreSi-
dent HooverS economic reconstruction
program made progress during the day.
A banking subcommittee headed by
Senator Watson Of Indiana, the Repub-
lican leader, was named to hold hear
ingS on bill to create system of
home loan discount banks.
At both ends of the Capitol admins
tration measures designed to give Gov
ernment help to insolvent closed banks
were introduced.
It's sponsors were Representative
Beedy of Maine and Senator Thomas
Republican, Idaho.
1t would create a $3.50 ,000, 900 corpora
ton to make loans to insolvent State
and national banks.
The reconstruction corporation meas
ure provides for loans to closed and in
solvent banks but the committees work.
ing on 1t felt aid to those which are
insolvent should be provided in the
separate bill.
Sees no Need for Dismay.
Senator Watson Of Indiana, the Re
publican leader, and Senator Moses Of
New Hampshire, the President Pro
Tempore, issued the following statement
tonight respecting the Nbill.
4AAS4G 40 AAO AChoOl1 4UI dASlIldy III LLlC
delay in the passage of the reconstruct
ton finance corporation bill in the SEN
ate today. The problem presented
through demands of certain municipali-
ties and certain business interests,
which are grouped for the purpose of
extending the provisions of the act,
offered an opportunity for debate which
could not have been concluded within
the limits of the entire daV
Accordingly it has been agreed upon
word of honor Of the Senators that the
Senate shall promptly resume consid-
Grafton OF the legislation at noon on
Monday and remain in continuous ses-
sion until the bill is passed.
1T must be remembered that the bill
Is not yet in the House Accordingly
no time has been lost. We will mes
sage the measure to the House in ample
season for it to deal with it so that IL
will be in the hands of the President
quite as early as If the Senate had
passed it today"
Walker Telegram Read.
The Walker telegram said: THE
united States Is now in a financial
StraitJacket because of severe restric-
lions imposed by the banks on lending
money 1or the operations of local gov
ernments."
ON the one hand" it continued.
tne National authorities are urging
that Lne TeLer for the acute poverty
ana distress resulting from unemploy-
ment must be provided by the localities
tnemselVes-that is, by cities, towns
and villages.
ON the other hand, the banks hays
raised the interest charges on Short
term loans to prohibitive rates and are
almost impossible conditions,
even natly refusing to do business with
the authorities Of their own COM
Surely the Congress is not going to
consider the people less important than
sne oanks or the requirements of the
institutions"