The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1932-02-11
CONGRESS TO AID
ENTIRE COUNTRY
Bill to Free Billions for Credit
Receives President HO0v-
er's Approval
IS NON-PARTY MEASURE
Carter Glass, Democrat, Will
Introduce Plan in u. S.
Senate at Once

Washington, FEB. 10-Congres-
sional leaders agreed with Presi-
dent Hoover Wednesday on a new
legislative drive for better times
directed at freeing billions of
sound securities for active credit
use.
The new emergency measures
which will be pushed simultane-
ously and Immediately in the
senate and house also proposes to
make serviceable nearly Ssh ,O0O,.
100000 of the treasury's gold sup
ply not now needed for reserve.
Senator Glass, Democrat, Vir-
GINA, will sponsor the bill in the
senate. Chairman Steagall of the
Democratic house banking COM
mittee will father it in the house
Republican and Democratic lead
ers of the senate and house agreed
to give it right of way.
The bill, almost drafted, opens
the doors of the federal reserve
system to new securities held by
the banks which are not now eli
gible for rediscounting, and by the
step frozen credits" may be loos.
ened at once. The legislation is
experimenting the $4,000, 600, 600
Reconstruction Finance corpora
ton, now going into operation.
Charles G. Dawes, president of
the corporation, and Acting Sec
etary Mills of the treasury joined
President Hoover at the White
House conferences with the legis-
lators.
BY releasing $1,000,O00,O0O in
"free gold" Of course the way is
opened to an expansion of the cur
rency if it is needed. The financial
leaders say this is not needed If
$500, 100000 in boarded money is
returned to circulation by the
people. I
1t was explained that lowing to
the amount of gold now held by
the federal reserve against bank
note issues is "far in excess" Of
the 40 per cent required by law.
A joint statement issued Wed.
nesday night by the legislators
said: "This proposed amendent
would when the federal reserve
board deems it desirable in the
public interests, have the effect OF
making all the assets acquired by
the reserve banks under the pres
ent provisions of the law avail.
able for not to exceed one year as
collateral for federal reserve notes
in addition to the 40 per cent gold
reserve, thus making the excess
gold serviceable. ~,
This provision will have the eff.
feet of giving greater flexibility to
the federal reserve operations. II
will make the systems large SUP.
ply Of gold more useful as a basis
for credit. It will at once incrsase
the systems free gold by nearly
81, 000, 900 ,OO0." nc, !.
Senator Walcott, Republican
connecticut, and :. Representative
Strong, Republican, Kansas, Joined
with Glass and Steagall Wednesda,
night in perfecting the draft of, the
bill. They also consulted with Gov.
ernor Meyer and experts of the fed.
trail reserve board. ..,r,
Snators Watson, Indiana. the
Republican leader, and Robinson
Arkansas, the Democratic pilot, at.
tended the senatorial conference al
breakfast at the White House and
agreed on the action. Speaker Gar.
ner and Representative Smell, New
York, the Republican leader, went
later with the house group to the
White House and also gave their
support.
Hearings are planned on the leg.
islation, and by next week it is be-
lieved the new emergency program
will be on the floor of both the
senate and house.
The union Of Democratic and Re
publican leaders behind the legisla-
ton appears to assure its prompt
enactment.
Senator Glass is one of the au-
thors of the federal reserve act. He
has stood firm against any too
great opening of the doors of the
reserve SYSTEM to discounting of
paper not now eligible. However,
his decision to support this legis-
lation is regarded favorably by
those who. are wary Of too fast an
inf1ationary movement.
The Glass measure providing far
reaching revision of the banking
laws and establishment Of govern