Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-01-09
ROOSEVELT CALLED
BANK BILL SPONSOR
Glass, in Senate Debate, De-
MES Measure Would
Incur His Veto.

BY the Associated Press.
In the midst of compromise efforts
on the branch banking. controversy
Senator Glass ID. of Va, told the
Senate today during debate on his
banking reform bill that he felt auth
orized to say that President-elect Roose-
welt wants this bill passed"
The compromise on foot would per-
nit branch banking by National banks
only in those States permitting Stats
banks to have branches within State
lines.
The present provision, over which
Democratic liberals and conservatives
are split, would permit branches re-
CARELESS of State laws prohibiting them
Denies Veto Awaits Bill.
Upon resumption of Senate consider
alton of the measure, Senator Glass
asserted he wanted to deny the bill
would Incur veto from the President
elect" as he said had been predicted in
some quarters unfriendly to the measure
Senator Long, Democrat, of Louisi-
ana. outSpoken opponent of the bills
branch banking clause, Immediately in
quired where Senator Glass got his in
formation
Glass replied he was mot impartine
the information requested by the Sena-
tor from Louisiana" but was making
the statement for what the Senate
thinks it is worth"
Glass said Roosevelt realized there
was considerable antagonism to the
present branch banking provision. anc
not much chance of passage of the bill
with that provision in it.
The Virginian said that was his owl
judgment also.
Glass said he was willing to accept
the amendment offered by Senator
Vandenberg, Republican, of Michigan
which he said cuts the ground from
under the criticism that the bill wa.
designed to crate banking monopolies.
Vandenberg's amendment provided
that no national bank branch could bt
established in a community unless il
acquired existing banks, but would moi
apply to communities in which therI
were no banks.
Glass Explains Amendment.
THE controller of the currency car
tell you that now there are thousand!
Of communities destitute of banking
facilities" Glass continued.
The second largest tobacco county
in Virginia (which he did not name
is destitute because three banks there
failed, tying up S2,750,000"
"Apprehending" that this reasonable
proposal might not prevail, Glass said
he prepared an amendment confirming
the branch banking ito those States
whose laws permit or practices toler-
ate branch banking.
Objections having been raised tc
that by Senator from State which
has no laws on the subject" Glass said
he revised the amendment to confine
branch banking to States where the
laws permit it.
Security Affiliates Debated.
New opposition to the bill was aimed
at the bills provision that national
banks must divorce themselves from Sc
curity afflliateS in three years.
Indications were the measure would
be before the Senate the entire week
because of these two major points OF
difference and plan to sidetraek it tenn
porarily whenever appropriation bills
are ready for consideration.
Opponents of the security affiliate
clause argued that affiliates have be-
come necessary adjuncts to the banks,
and ii they must be separated, more
time fhould be allowed for the change
Supporters of the section allowing ma
tiona1 banks to have branches within
State Ines by taking over weaker in
stitutions. found strong advocate in
P. D. Houston, treasurer of the Amer
lean Bankers Association, who sale
such consultations were necessary il
further bank failures are to be avoided
Houston, in formal statement, esti-
mated the damage to the Nations credit
structure from bank closings at approx
imately $500, 100000 and said many
small banks now finding it difficult tt
survive will find it possible to continue
to serve their communities after conSol-
idation with stronger bank"
THE alternative TO consolidation anC
absorption" he said, appears to be
suspension, with resultant loss to depos-
itors, stockholders and the community
generally"