Evening star., 1932-07-20
Publicity of Loans.

banks and others becomes a burning
question. so burning that Speaker John
N. Garner himself may be called upon
to settle it, Mr.. Garner, it will be re-
called. was sponsor for the publicity
amendment now in the relief bill,
which the President is soon to sign,
providing for the publication of loans
made by the Reconstruction Finance
Corporation. 1t would be strange, in
deed, if the Speaker did not lift up his
voice and demand that the loans be
published every month, especially
strange in view of his apparent willing
ness to take the lead on all occasions in
this coming presidential campaign.
Despite the really serious question
involved, the situation arising in con-
nection with the publicity clause in the
relief bill is not without its amusing
side. Mr. Garner at the eleventh hour,
after all the Democrats of the House
had agreed to draft and support bill
in conformity with the recommended
tions of President Hoover, emerged with
the publicity amendment. Mr.. Garner
may have had nothing to do with
origination of the amendment. Indeed,
it has been rumored that the amend
ment, designed to offset the use of the
Reconstruction Finance Corporation
and its loans as a valuable adjunct to
the Republican campaign, was sug-
gested to Mr. Garner by no less
a person than the presidential nominee
OF the Democrats himself, Gov. Roose-
welt of New York And possibly the
idea was presented to Gov Roosevelt,
it is said, by more astute political
brain.
However, the Democrats lined up
solidly for Mr. Garner and his amend
ment and there was a sprinkling of
recruits from among the Republican
progressives. The House stood firm. In
the end the Senate and the administra-
ton swallowed the publicity clause. be-
bill was of paramount Importance.
But before the gulp, the Senate,
through its Democratic leaders, includ-
ing Robinson of Arkansas, Glass of Vir-
ginia and Wagner of New York, assured
the Senate and the country that there
could and would be no publicity of loans
made by the Reconstruction Finance
Corporation during the recess of Con-
rir bo IF
would merely be received by the secre-
tary of the Senate and the clerk of the
House and held in confdnce until some
action was taken by the two Houses,
individually, to make these loans public
or to withhold them. In view of the
attitude of the House Democratic lead
ers, the Senate ostrich appeared to be
sticking its head in the sand. And so 1t
has turned out, seemingly. For Repre-
sentative Rainey of Illinois, the Demo-
cratic floor leader of the House, has
boldly asserted that if the clerk of the
House does not make these loans avail
abl for publication in the newspapers
as soon as he receives report of them,
it will be much worse for the clerk. Mr..
Rainey has had hard time keeping up
with all the turns of Speaker Gamers
mind during the past session. But 1t Is
presumed he knows what he is talking
about this time.
So the Illuminating picture may be
presented of the Senate withholding
publication of reports Of the Recon-
struction Finance Corporation loans
while the House hands them over to
the newspapers. President Hoover. if
he desires, probably could beat the
House to it, for under the law the re-
ports of the loans are to be made also
to him.
Many bankers have urged that the
publication of these loans to banks would
be detrimental. possibly causing runs on
the banks making loans and thus pre-
venting the relief which Congress is
seeking to extend Furthermore, the
Reconstruction Finance Corporation is
to have under the new law board OF
directors composed of four Democrats
and four Republicans. 1t has been re-
ported that the President has desired
to place a very eminent Democrat at
the head of the corporation, Owen D.
Young of New York. In these circum-
stances, it does not seem likely that the
G. o. P. could use the corporation and
it's loans for campaign purposes. But
Mr.. Garner doubtless will think other
wise