The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-06-03
PASSAGE OF 5
MAJOR BANKING
BILLS PERILED
Measures Aimed at Money
Initiation Are Dead
locked.

III serinps-Howard Aciespoper aHiance
WASHINGTON. June 3.-Five
major banking reform bills are
neadiocked on Capitol hill today.
with he result that passage OF all
Of them is endangered.
The new Glass bill. permitting
Rational banks 70 use their federal
securities as a basis for increased
currency. was introduced to pre-
Tent enactment OF the Goldsborough
price-dxing measure. which has
been passed by the house. Even
sponsors OF the new senate proposal
arc only half-hearted in support
Of their latest effort 70 initiate"
currer cy.
While these measures are tangled
zap IN a deliberate IAN. two other
bills are in a contest for passage.
They arc the Glass banking bill de-
signed 70 curb speculation. and the
Steagall bill to protect depositors by
a guarantee fund The latter has
been passed by the house.
Halted BY Garner
The old Glass measure to bar use
Of federal reserve facilities in the
speculative field was considerd for
two DAYS BY the aenate. and at
tracted considerable support But
g. WAS set aside for the tax bill, and
viii ret on the shelf until the
economy program has been disposed
81 Glass hopes 70 get it through
The senate. although It's success in
'the house Us doubtful
The home loan bank bill. an ad-
minl-tration measure. has been IA
Norablv reported By the house bank
ing and currency committee. and it
Nss headed for action until Speaker
Garner introduced his POO. 100000
measure
Now the Democrats contend that
the Reconstruction Finance Cor
poraton can provide funds for
home builders through the addi-
fional $1,000 900 900 given it under
the Garner program The home loan
bank bill has not emerged from the
kenate banking and currency COM
mittee although President Hoover
entrusted it 10 the care Of Majority
Leader Watson OF Indiana.
The general banking bill spOn-
korcd bv Glass would revise the re-
Ferve system so as TO divorce security
houses from banking institutions,
END in other ways restrain excessive
speculation. Il met bitter opposition
from large banking interests. but its
extension Of branch banking. which
aroused the fears OF western pro-
RreSsives, is what blocks it in the
senate
Provides for Initiation
The new Glass measure which the
senate banking committee has sub
stituted for the Goldsborough bill
will bring direct and difTusive in
hation." according to Chairman Nor
beck rep, S. d.. The committee,
Norbeck said, thought that any cur
Eency imitation should affect the
whole country as quickly as possible.
and not be controlled by the great
money centers.
It provides that national banks
may secure currency with their
government holdings as backing, or
obtain the privilege of issuing cur
FenCy. The maximum amount of
issue shall be equal to their capital
szation. which is $1,000 ,000,000 fol-
hH national banks. If every bank
took advantage Of this provision to
the fun extent OF its authority, that
amount would. IL is hoped. replace
about $1,000 600 900 now being
boarded.
Harm Is Feared
The bill provides for currency
Father than credit initiation. The
idea has long been advocated by
Senator Robert L. owen Of
Oklahoma. former champion OF the
Senate banking committee
The house GoldsbOrough bill, in
the opinion Of sponsors Of the new
measure. is an "idiotic monStroSity."
f. directs the federal reserve system.
through open market purchases and
bther means. TO restore price levels
to the 1926 level But its vagueneSs
hnd its ALLEGATION Of unrestrsined au-
thOritv to reserve officials, in the
opinion Of Glass and his associates,
miCht do more harm than good.