The Waterbury Democrat., 1933-07-21

New York, July 2f--With the adjournment of congress and the completion of the administration immediate legislative program. 1t becomes possible to form q fairly coherent idea of the main lines of public policy as they will affect business in the near future. The various legislative measures are presented in outline form in the current issue of The Guaranty Sur yey, published by the Guaranty Trust company of New York, un- der their respective functional headings as industrial control, pub lie works, money and banking. fi- nanciaI relief, railroads. govern ment economy. prohibition and foreign policy.
 Under the heading of money and banking, as grouped by the Survey. fall the so-called Imitation" amendment to the farm act. the emergency banking law, tho Glass; Steagall act, the securities law for the regulation of investment bank ing, and the various executive or- ders relating to gold exports, hoarding. and bank administration. us well as the joint congressional
 
 clause" in bonds and other con- tracts. The Survey summarizes these measures in part as follows:
 "TnhatiOn" Amendment
 The Imitation" amendment au- thorizcs the president CD to arr range for the purchase by the fed- eral reserve banks of government securities up to $3,000.000, (2) to issue United States notes to re- place government obligations up to a similar amount. such notes to be retired at the rate of per cent n year, (3) to reduce the gold con- tent of the dollar by any amount up to 50 per cent. (4) to institute free coinage of silver at q fixed ra- tio to gold. and (5) to accept silver up to $200,000, 900 at q price of DO cents an ounce in payment of the debts of foreign governments. and to issue certificates against such silver. Under the authority of this act, the federal reserve banks be- gan to expand their holdings Of government securities on May 23: and foreign governments delivered silver in partial payment of their June Is debt instalments.
 The emergency banking act au- ulate gold shipments and to license thorizes the administration to reg banks for restricted or unrcstrict- ed operations. It broadens redis- count privileges of member banks. permits non-membcr banks to en-, joy certain facilities of the federal reserve system, provides for the issue of federal reserve bank notes without any specific gold cover against the pledge of various forms of bank assets, authorizes the Reconstruction Finance cor poration to assist banks to reopen by purchasing their preferred cap ital stock. and provides for the ap- pointment of conscrvators to reor- ganize or liquidatc closed banks.
 Under the authority of this act, the large majority of the country's banks have been reopcncd by the granting of licenses without the power to make specie payments: the hoarding of gold has been pro- hibitcd by executive order. and the licensing of gold exports has ceased. Considerable amounts Of federal reserve bank notes have been issued. although the expan- sion in this form of currency has DCeU DlOGc oiIbCb Oy thO aN duction in the amount of federal reserve notes outstanding.
 The Banking Act
 The Banking Act of 1883, popu- larly known as tho Glass-Steagall act, provides for number of per manent and important changes in the banking system. It's most dras- tic and most controversial feature is the insurance or guaranty of bank deposits, which Is to be ad- ministered by an insurance corpo- ration and financed partly by the government and partly by assess ments on participating banks based on the amount of their deposits.
 Beginning January 1, 1934, de- posits up to $2.500 will be fully in- surcd. At the middle of 1894, the permanent insurance plan will go into effect providing 100 per cent