Evening star., 1932-02-16
GLASS BILL DELAYED.
Action Expected Promptly After Vote
on Relief Measure.

Bv the Associated Press.
The nearly unanimous good will Of
the House put the G.cos-Stsagall credi.
expansion bill today up to the Senate.
which probably will pass it with dis
patch.
The measure went through the House
with only Is opposing votes after a day
Of the fastest consideration permitted
by its system, a suspension Of rules
which barred all amendments. cut Ge-
bate to nominal quantities and set in
advance the hour at which the roll was
called. The bill was supported by $50
members.
Senate action was not expected today.
The relief issue still held the boards,
and it Is nearly impossible for the Sem
ators to pass bills Of any importance
with such speed as the House can show.
Besides, Senator Glass of Virginia,
Democratic sponsor of the measure, has
added to it some limitations which the
administration wants removed. One
would restrict extension Of the increased
Federal Reserve credit to banks with
less than s5O0,000 capitaliZat.on; the
other REQUIRES banks to exhaust all
paper now eligible before drawing on
the new privileges.
Disposed to Go Slow.
Although backing the bill. Glass has
not shown too much enthusiasm over
it. being disposed to go slow on any
changes which might possibly lessen
the uneoualed soundness OF this coun-
try's Federal Reserve system. But pro-
tracted haggling over exact terms was
not expected.
At the request Of Chairman Steagall
of the House Banking Committee
Speaker Garner yesterday invoked 1or
the first time in this Congress the dras-
tic right of the House to suspend its
rules to accelerate action.
The bill has potential credit power
Of $4,000, 900 900. according to a state.
ment of Secretary Mills before the
House Banking Committee. In freeing
$3.50 100000 in gold 1t makes possible
the quick issuance of Sl,875,0O0,OO0 in
Federal Reserve notes.
Destined to restore confidence In the
Nations economic life and to dlspel
the fears of bankers and depositors
alike. the legislation makes Immediately
available funds for banks that now have
no paper eligible for re-discount.
One-Year Period Provided.
The bills life is for one year. as it
passed the House. although an effort is
to be made in tie Senate to make 1t
possible to extend the act for q second
year II necessity arises.
It provides that groups OF five or
more independent banks may borrow
money on demand or promissory notes
from the Federal Reserve banks upon
the approval of q majority of the Fed
eral Reserve Board.
Government obligations. both bonds
and short-tern1 securities, are made
eligible for re-discount purposes, but
foreign securities are barred.
Any bank members of the Federal
Reserve system that have no paper
eligible for rediscount purposes or ac-
ceptable assets available to obtain credit
accommodations may borrow on time or
demand promissory notes from the sys-
tenn On the approval Of q majority OF
the board.
Chairman steagall explained to the
House that similar measure had been
recommended for years by the Demo-
cratic members Of the Banking Conn.,
mittee. He charged that big banking
interests had secured 50 many amend
ments to the Federal Reserve act that
they had perverted the system" but
he said this measure would bring about
improvement in the economic condition
of the country.
A score of Republicans and Demo-
Gratis spoke for the BILL pointing out
the need for more currency due to the
boarding Of $1,000, ,000, 900 in Federal
Reserve notes since Last September and