Evening star., 1932-01-30
GLASS BANK BILL
DELAYED FURTHER
Measure Designed to Bolster
Federal Reserve System
to Be Rewritten.
BY c. B. UPHAM.

The progress Of the Glass bill for
revision of the Federal Reserve act and
national bank act, which at first an.
peered to some Washington observers as
likely to be swift and smooth has been
interrupted by difficulties and DELAYS
1t has been announced that it will he
rewritten by the subcommittee of the
Senate Banking and Currency Commit
tee, which originally framed it
Inc Dill probably will be referred In
me treasury Department for a report
on the effects Of the various provisions
IL Is known that the Office of the
controller OF the currency takes the DO
Sltlon that the sections of the measure
which amend the national bank arr
require careful study and Weighing
OF the effects upon institutions sUner2
plSeQ Dy that office The officials Of
!he FEDERAL Reserve Board take A like
poSltlon with respect to the provisions
relating to the Federal Reserve act
Proposals Are Studied.
The bill is not one which can he
readily cOmprehended by a hasty read
ing. indeed, agencies which are max
ing dlgeStS OF its provisions for the
Denent OF banking clients have been
puzznng for several days over some of
the proposals.
The concern Of the Federal Reserve
Board is regarded as springing nartIv
from the possibility that membarshin
IN the system would be discouraged bv
some OF the restrictions contained in
tne Dill: Moreover, they want to give
Ihorough consideration to the SolInd-
ness OF all proposed changes. In sim
lIar fashion, the controller is con
ccrnsd over reports that a number NJ
hatlonaI banks are seriously contenl-
platlng taking out State charters if the
Glass bill becomes law.
A common criticism of the bill is
that 1t does little if anything, to re-
ueVe the present difficulties of the
oaHKS' out Is devoted largely to setting
up restrictions and regulations for their
future conduct. Many of these are
regarded as unduly severe, and from
the standpoint of administrator and
supervision, difficult, if not impossible
Of enforcement.
Ihose interested in group banking
argue that their organizations have
strengthened the banking position IN
tnelr territories and communities and
that this is hardly a time to )fnaIize
Ihem 1or having taken the 7ctiOn thav
nave. Moreover, they point TO ihe
aosence OF any restriction on the oDer-
atlon OF personal chains Cf banks, and
point out the incOnSistenCy of dnaIi,,1
harshly with the stroYges5 tvne 0f r1"Is ,7,,iIe
upIe banking. while at the same lime
neglecting altogether the more danger
GUS type
IN connection with the proposal that
each Federal Reserve Bank Shau ,u5-
scribe annually to the stock of t6a
C!oseo Bank Liquidating Corp9rati-a
an amount equal to One-fourtn Of The
annual increase of its surplus. il hos
been pointed out that for tie wear 1G30
tne banks of the system transferred OF
OF surplus something over $4,000 $50,
ana that banks which have so far re-
ported 1881 earnings show Ceducsfrns
from rather than additions to srrnr.,s
accounts.
Concern Over Bill.
American firms engaged IN ror~:oo
tTade. which frequently have occasion
10 MAINTAIN bank accounts in European
countries, Canada, and elsewhere. have
expressed some concern over the sec
llon OF the bill which prohibits Cor
poratlonS engaged in commerce" fr~m
placing funds on deposit "eXcc7l in
nanking associations incorporated uaG7r
the laws of the United States or of
some one of the States or Territories
thereof While probably no. INTENDED
TO prohibit foreign bank accounts.
counsel who have considered the &c
tlon are of the opinion thnt It would
effectively do So They point out. more
over, that the bill makes it obligatory
on corporations to maintain bank ac-
counts for it reads that no corporation
which shall fail to deposit its funds in
banking associations incorporated under
the United States or Of some Cne # the
States or Territories thereof shall en-
gage in such commerce"
(Copyright. 1892