Evening star., 1933-05-14
COMMITTEE 0.K.'S
GLASS BANK BILL
Measure in Good Position as
Senate Lacks Other
Major Projects.
BY G. GOULD LINCOLN.

The Glass bank reform bill, which
is still knocking at the administration
door to be made definite part of tht
legislative program, moved forward yes
terday when the Senate Banking an6
Currency Committee ordered it favor.
ably reported to the Senate.
The report of the bank bill, carrying
its insurance of deposits provision un.
changed. comes at time when the
Senate has no other major legislation
on its calendar. 1t promises to give
this bill a strategic position. 1t Is not
believed that the administration will
openly fight bank reform bill, not
withstanding the fact that Secretary
strongly opposed to some features OF
Seeks Immediate Operation.
Senator McAdoo of California made
another attempt to have the insurance
of deposits clause of the Glass bill
made Immediately operative so far as
deposits up to $5 900 are concerned. BY
a vote of 8 to 4. however the Banking
surance provision Of the bill as it was
written-making it effective one year
from the date of the approval Of the
bill by the President
The House Banking and Currency
Committee. headed by Representative
Steagall of Alsbama, gave consideration
yesterday to the Steagall bill and the
Glass bill. The Stegall bill is similar
to the Glass bill, but differs in the ap-
plication of the insurance of deposits
to State banks Members of the COM
mittee expressed the opinion after the
meeting that the bank reform bill might
be ready for report to the House by
the middle of the week
The Glass bill contains provisions to
compel national banks to cut off all
connection with their so-called "af-
filiates" at the end of a two-year pc
riod It also would compel private
banks of deposit to do business
strictly limited to banks of deposit or
to become investment banks. This pro-
vision will affect materially some Of the
great banking houses of this country
and the world. among them j. p Nor
gan & Co. The bill carries a pro-
vision, too. which prohibits the pay
ment of interest by banks of deposit on
checking accounts. And there are
regulatory provisions designed to pre-
vent the use of Federal Reserve re-
sources for speculative purposes.
Amended by Committee.
How much of a fight will be made
on the Glass bill remains to be seen.
The bill was amended by the Banking
Committee to give more protection to
minority stockholders before it was Or
dered reported favorably. 1t still car
ries a provision permitting national
banks, with the approval Of the con-
troller of the currency, to establish new
branch banks in city or town, or with
in the limits of State If the State
laws permit such branch banking. 1t
was the branch banking provision of
the bill that was singled out for at
tack in the Senate during the last ses-
ssion of Congress.
Senator Glass said yesterday that he
would seek to get the bank reform bill
up for consideration in the Senate at
the earliest possible date. He added
that he felt confident that the measure
will be written into law at the present
session. Democratic House leaders are
still waiting to hear from the White
House regarding the bank reform bill.
However, they are showing no DISPOSE
ton at this time to prevent a vote on
the measure. Indeed, some OF them are
heartily in favor of the bank reform
measure, holding that it is necessary to
restore confidence in the banks and to
start business going again.