Evening star., 1933-06-15
The Political Mill
By C. Could Lincoln.

When 1t comes time to cast up the
gains and losses from failure Of Con-
gress to wind up It's work last Saturday
and adjourn the final passage Of the
Glass-Steagall bank reform bill will
stand out as the great gain. President
Roosevelt has announced that he will
sign this measure, making 1t law. He
may do so today. Under the Constitu-
ton he has 10 days after its presenta-
ton to him to give his approval. The
bank reform bill is the most far reach
ing and salutary bank legislation since
the passage of the Federal Reserve act
back in the days of woodrow Wilson
The measure proved to have as many
lives as cat. Despite the big maJori-
ties in both houses for such legislation
to block its final passage again and
again. A final threat by members OF
the House to delay adjournment Of
Congress, plus an eleventh-hour willing
ness Of the administration to allow the
bill to go through, brought the coaferees
on the bank bill together to wo1 out
at last a conference report which vas
submitted and adopted by both nRuses
on Tuesday.
The demand fer legislation 10 reform
the banking system has been iIsistent
except by thosc banking interests which IL b
have demanded the right of bankers to
do all kinds Of business. The failure
Of the old system, however, has been
apparent ans c!imaxed with the utter
loss of confidence in the banks and
the system which forced a closing o1
all the banks last March. Opponents
Of reform legislation hoped that a re-
vival of business would make the de-
mand for this legislation less and less
active. They strove for postponment OF
the passage Of the bill by Congress
Fortunately for the country, however
their tactics did not succeed.
The opponents Of bank deposit insur-
ance, which was written into the law
finally, continue to croak. They say
that banking system which Is sound
should need no insurance Of deposits
That Is correct. But these same people
have been supporters of the old system
presumably on the ground that it was
sound. The long trail Of bank failures
throughout the country, running into
the thousands, and long before the
Presidents order closing all banks was
issued In March, gives the lie to any
such contention. Why, on the ether
hand, should the insurance Of bank
deposits make the system unsound
Banks themselves take out insurance
against loss by theft or default Of on
cials Of the banks. That insurance does
not necessarily make the chances OF
theft and default in the banks any
greater. This Nationwide insurance OF
bank deposits is new thing Such
insurance has been tried before In sew
eral OF the States, but has been aban-
doned. The insurance plan now set up
by the Congress should 60 far toward
restoring the confidence Of depositors in
banks. And it should make the banks
themselves, which contribute to the
insurance funds, more and more care
full.
The vote In the Senate last night
IN support Of the so-called SteiWer-
Cutting veterans compensation amend
ment to the Independent Offices appro-
prlation bill was expected, despite the
desperate efforts of the administration
leaders to line up the Democrats to give
the PRESIDENT majority against 1t. Not
single Republican Senator was re-
corded against the amendment, and 1S
Democrats broke away from their lead
ership to vote for 1t. The vote stood
81 to 80 for the amendment and
against the President. Mr.. Roosevelt
has met his first major check on Capt.
tol Hill in this fight over the veterans
compensation. However the matter
finally ends. he has been compelled since
the Senate more than a week ago
adopted the Connally amendment linn
iting to rs per cent the cuts that might
be made in veterans compensation
under the economy act, to accept COM
promises which threaten to increase the
expenditures for the veterans $780,
100000 this coming year above the
plans OF the Budget Bureau.
Nineteen Democratic Senators Is a
big loss to the administration in this
fight. Not only did the President lose
the support of his own party men in
this vote, but he failed also to hold
those allies of his on the Republican
side OF the chamber, the Norrises, the
Cuttings, the La Follettes and Johnsons.
all Of whom deserted the G. o. P. in
the last campaign and clung to the
Roosevelt standard. But the urge to
vote for the veterans was too great to
permit them to stand with the Presi-
dent on this issue. For once the Re-
publican side of the chamber was found
voting as unit. Such thing literally
has not happened for years. It has
been a long time since some of the
Republican progreSsiveS have not been
found voting with the Democrats on
major issues before the Senate.
Senator Norris Of Nebraska pro-
claimed his affection and admiration
for President Roosevelt at the same
time he announced that he intended
to vote against him on this veterans
issue. and Senator johnson of Cali
fornia did much the same thing. The
serious thing for Mr. Roosevelt, how
ever, lies not so much in the loss to
his standard, even temporarily, Of the
Republicans, but in the loss
OF 10 Democratic Senators. It would
be a disastrous thing for the admins
tration if recalcitrant group of Demo-
Gratis Of such proportions should de-
velop in the Upper House. The Re-
publican Presidents of the last dozen
years had their "progressives" to deal
with and met defeat after defeat on
administration measures, which did not
make for the interests of legislation.
X X
The Republicans In the Senate took
a leaf out of the Democratic book writ
ten in the last administration. If there
Is any political advantage to be OBJ
tanned from taking the veterans end
OF the fight with Roosevelt, they intend
to have it. The Democrats during the
Republican administration played the
same kind of politics.
If any one had any doubt as to
what would happen in the Senate when
debt day. rolled around for the for
eign debtor nations the debate in that
body yesterday must have removed it.
When 1t became known definitely that
the President had accepted 0,0o0, 600
from the British, or about one eighth
OF the amount due today, and that he
had said this did not necessarily mean
0PfQult thara uns hnu,I