Evening star., 1932-05-03
BANKERS EXPLAIN
GLASS BILL FIGHT
7 Executive Council States OBJ
yjections to Proposed LegiS-
ACKNOWLEDGEMENTS Urged.
BY EDWARD c. STONE.

49,
amendments to the Glass banking bill
have just been made public by the
American Bankers Association, follow
ing the Spring meeting Of the execu-
, tive council. The desired amendments
were drafted by the A B. A. legislative
council, of which Robert V. Fleming,
president of the Riggs National Bank,
Is chairman, the proposed changes being
unanimously accepted by the executive
council The desired amendments, as
they now stand, are as follows:
Il. That the capital Of the Federal
liuuidating corporation should be
furnished by the Treasury or by the
Treasury and the Federal Reserve
Banks instead of requiring the member
banks to contribute.
2. That the provisions of the bill
prohibiting national banks and state
member banks from directly partlclpat-
ing in the underwriting and distrlbu-
ton of investment securities be
eliminated.
3. That the regulations governing the
use of Federal Reserve credit be
amended so as to require the directors
of regional Federal Reserve Bank 10
INQUIRE into the uses of credit by mem
bers and to report misuses to the red
eral Reserve Board.
f. That instead of requiring MEMBER
banks to give up their security athilateS
in three wears, regulation and super
vision of the affiliates should be pro-
vided with a view to reconsidering the
problem after a suitable period OF trial
under regulation.
That all provisions OF the Dill
which deprive State institutions OF
their full charter and statutory rights
be eliminated.
Bank Contributions Opposed.
The bankers views on the Federal
Iiquidating Corporation are explained
by the following statement:
eve approve the principle of a
Federal liuuidating corporation and
are in accord with the proposals OF
the Federal Reserve Board as expressed
by Gov. Never for the formation OF
this corporation and the composition
of its capital structure. We do not be-
lieve that member banks should be
further burdened by being required 10
make subscriptions out of capital funds.
We therefore recommend that the pro-
visions of the bill be amended In &C
cordance with Gov. Meyers proposal
that the capital of the liquidating
corporation be furnished by the treas
ury; or we suggest the alternative that
the capital be furnished by the treasury
and the Federal Reserve Banks"
Would Permit Underwriting.
The text of the committees report
goes extensively into the move to pre-
vent banks from taking part in the
underwriting of new issues. The recon-
mendations say:
by the elimination of national banks
and State member banks from the in
vestment securities business, the bill
would throw such business into the
hands of organizations not responsible
to the Federal and State banking au-
thorities. This would be a backward
step in the development of the bank
ing business and would seriously retard
the restoration Of commerce, industry
and agriculture to normal conditions.
I'VE regard this a legitimate and
necessary service for the banks to
render to their country. AS practical
bankers We are convinced that private
bankers and partnerships have not the
resources available to meet the busi-
ness needs of the country in the field
of long-term finance without the aid of
member banks. We, therefore, recon-
mend that these provisions of the bill
be eliminated"
Mr.. Fleming's committee and the
council go into much detail on the
safeguarding of bank charters, the
problem OF afhliates and restates the
associations views on branch banking.
. Today's Trading on Exchange.
Bonds again led business on the
Washington Stock Exchange today. the
market opening with 81 900 Anacostia
& Potomac Railroad IS selling at So.
City & Suburban IS figured in four
81 900 sales, all at 49, In the stock
division Potomac Electric Power 5la
per cent preferred registered a tiny
sale at 1902 and Potomac Electric
Power 6 per cent preferred recorded a
small sale at 108.
1t was reported in the financial dis
trict today that Battle & Co. dealers
In investment securities, has opened an
office in Washington in the McLachlen
Building. The firm has been in busi-
ness in Philadelphia and New York for
about 40 years and the local repre-
sentative will be Alec E. Robertson.
The company has made a speciality of
public utilities and was active in the
original financing of the Suburban Gas
Co. of Philadelphia and the Philadel-
phia Suburban Gas g. Electric Co.,
Baltimore Electric Co. and the SYRIA
cuse Gas Light Co.
Lanston Meeting This Week.
The annual meeting of the Lanston
Monotype Co. takes place Thursday of
this week in Alexandria, Va. j. Thil-
man Hendrick of this city has been
chairman of the board for many years.
Unusual interest locally is always at
tached to the annual report as an ex-
ceptionally large amount Of Lanston
stock is here. The issue is listed on
the Washington Stock Exchange and
when trading was heavier on the local
beard than it is now, Lanston was al
ways one of the leaders.
Heard in Financial District.
A New York paper publishes a table
TO show how widely common stocks
are held outside of Gotham, General
Motors and eneral Foods being taken as
good examples. There were at the end
of 1881 4342 shares of General Motors
and 835 shares of General Foods held
in Washington.
Local shareholders were much
pleased that Standard Oil of New Jer-
Sey declared the usual 25 cents extra
In addition to the regular quarterly
dividend of IS cents, both payable June
IS to stock of record May l6.
Leans either actually made or au-
thoriZed by the Railroad Credit Cor
poration as of April 80, 1882, to rail-
roads to meet their fixed interest OBJ
legations, totaled S18.681 1880, accord
ing to the monthly report Of that cor
poration filed today with the Inter
state Commerce Commission.