Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-17
Objects to Substitution for
House Measure to Speed
Conference Study.
EUGENE MEYER Is SEEN
AS LIKELY RELIEF HEAD
Hoover Expedites Selection of
Board Despite Parliamentary
Tangle-Leaders Confident.
BY the Associated Press.

BY the Associated Press.
The emergency two-billion- dollar Re
construction Finance Corporation STUN
bled over parliamentary obstacles in
the Senate yesterday, but President
Hoover is going ahead with plans to
put it into operation next week.
Mr.. Hoover is selecting the board to
direct this gigantic relief corporation
and it seemed likely last night that
Eugene Meyer, the governor of the
Federal Reserve Board and chairman
of a similar postwar organization, the
War Finance Corporation, would be its
head.
Senator Blaine, Republican, Wiscon-
sim took advantage of the parlia-
mentary tangle involving the legisla-
ton to block move in the Senate yes
terday to send the separate Senate and
House bills to conference for adjust
ment of differences.
Confident of Passage.
Nevertheless, congressional leaders
informed the President of every conf
uCIICE JlIdG Vic 1ld5C ACNOA4StA NASIAOl4
corporation would receive final con-
gressional approval within the next six
days.
From the corporations S2,000,000,-
900 capitalization new credit will go
into the entire financial structure Of
the Nation and ultimately, in the
opinion of its sponsors, into all arteries
Of trade and business
The insistence of the House in pass
ing its own measure, rather than sub
shutting the one previously approved by
the Senate, opened the way for Blaine
yesterday to block an immediate con-
ference between the two branches for
the adjustment of their differences.
When the House bill was received in
the Senate, Senator Walcott, Republi-
can, Connecticut, asked that the Sen
ate's bill be substituted by unanimous
consent as formality to get it to con-
ference. Blaine objected complaining
against haste. His objection forced the
whole issue over until tomorrow when
the Walcott motion can be voted upon
under regular procedure.
House and Senate Split.
Two high points of difference be-
tween the Senate and House must be
reconciled The House bill would make
the paper of the corporation rediscount-
able by the Federal Reserve system. The
Senate bill expressly prohibits this.
The House bill would allow loans to
"other bona fide financial institutions"
The Senate eliminated this provision on
the grounds that it would enable the
corporation to take over the private
$500, 100000 National Credit Associa-
ton formed last Fall by bankers.
leo &c Iicn nfof 1a
tween House and Senate on loans to
farmers. The Senate bill carries a
rider" by Senator Smith, Democrat,
South Carolina. authorizing $50,000,-
900 in loans to farmers for the 1882
crop. The House merely set aside 10
per cent of the funds of the corpora
ton to be available for agriculture
credit.
Meanwhile, the second measure on
the emergency economic relief program
disqualification of the Federal land
bankS-WaS in conference and nearing
final approval
These first two items of the non
partisan relief plan submitted by Presi-
dent Hoover will be at the White House
next week
Bank Bill Opposed.
However, some difficulties are con-
fronting the other measures of this
program. The administration bill spon-
sored by Senator Thomas, Republican.
Idaho, to provide a $15O0OO,OO0 or
ganization for relief of the depositors
of closed banks is disliked by Senator
Glass of Virginia, the Democratic
spokesman on banking legislation. He
Is preparing to advance, instead, a COM
prehenSive measure, framed by his
banking subcommittee revamping the
national banking act and putting
curb on Use of Federal Reserve facih-
ties in speculation.
Hearings 1are proceeding on another
OF President Hoover's bills-to estab-
llsh home loan discount banking sys-
tem-but Senator Watson, Republican,
Indiana, in charge of this, said the
committee work probably could not be
concluded next week.