Evening star., 1932-12-15

Approval Is given to the advice OF
President Hoover, in his message to
CONGRESS, that the American banking
system should be improved, SO as to be
able to handle more efficiently such
crises as the depression. Some believe
that reform should 60 further than to
adopt the measures provided In the
pending bill drawn by Senator Glass.
Others are convinced that the matter
is so important that it will take long
time to achieve desired results.
Reviewing the financial record OF the
last few years, the Altoona Mirror de-
clares that there is room for overhaul
ing" while the Rock Island Argus en-
phasizes the Presidents opinion that
"the banking system failed at critical
time in the Nations history" and that
Imitation Of the currency or Govern
ment conduct Of banking must play no
part in banking reform" Lauding the
message because sit outlines with clarity
and conciseness the outstanding real
tiles with which Congress must wrestle,"
the Boise Idaho Statesman gives force
to the statement of flaws in our bank
ing system and to the challenge to
Congress to find a remedy. for the
need Is great"
wise reorganization Of the country's
banking system" is seen by the Chicago
Daily News as one direction in which
Congress may contribute to strength
ening the forces of recovery" while
that paper points out that Mr.. Hoover
serves more than one warning, directly
or indirectly, against attempts to enact
measures repugnant to ingrained Amer
lean individualism, measures calculated
to substitute paternalism and bureau
cratic domination for voluntary and
enlightened cooperation in the eco
non1ic field" The Lexington Leader
observing that "he suggests. what he
has recommended since early in 1929,
that the banking system be strength
ened and certain imperfections rem
edied," adds that "the Congress itself
and the Federal Reserve banking au-
thorities have made exhaustive investi-
cations and the facts are known" The
Spokane Spokesman-Review sees "a
new note in his vigorous recommended
ton for thorough reform of the system.
or. as the President puts 1t, the yoeful
lack Of system"
"The evil to which he points cannot
longer be ignored" advises the Roanoke
World-News. declaring that many
banking authori les believe that any at
tempt at banking reform win be ineffec-
tive until the present dual system OF
State and national banks is replaced by
q Federal Reserve system embracing all
commercial banks, leaving to State
regulation trust companies and savings
banks and those institutions that spe-
cialize In particular limited fields, such
as industrial loans. real-estate loans or
automobile paper" The World-News
recalls that the Federal Reserve Board
"has made number Of suggestions for
changes in the Glass measure" and
adds: "The main purposes Of the bill
as now pending are: To prevent use of
bank funds and Federal Reserve credit
for stock market speculation; to
divorce investment banking and security
affiliates from commercial banking: to
discourage chain banking and group
banking; to control bank investment in
real estate loans; to prevent evasion of
Federal Reserve requirements as to re-
serves Of bank members: to strengthen
the position Of the Federal Reserve
Board" The Roanoke paper concludes:
1.-THE Glass bill may be a step in the
right direction, but 1t does not 60 far
enough. There must come out Of the
experience Of the past three years a
banking system adequate to the needs
of the people Of the United States. If
that means the throwing overheard of
old prejudices, of discredited ideas. of
outworn methods, we may come in time
to realize that these years Of depression
have been worth . good deal Of what
they have cost"
The Baltimore Sun interprets the
statements =, tbs messa1b - - sug-