Evening star., 1933-12-05
LONGS SF|L|BUSTER
ISLA|O OT0BANkERS
Glass Leaves Sick Bed to
Confront AIdrich Before
y Senate PrObers.

Continued From First Page)
fore concluding its Chase inquiry it
ooo,oo pool in Seaboard Air Line stock
In which Harvey Couch and other
prominent men participated three or
four years ago Couch now is a direc-
tor of the Reconstruction Finance Cor
poration.
Aldrich said it may be necessary to
have constitutional amendment to
get a unified banking system"
You are in favor Of unified bank
ing system?" Glass asked little later.
Yes" the banker replied.
so am l." Glass added. But W.
are in a minority, particularly in Con-
gress. There have been three State
banks for every national bank, with
the consequent numerical influence Oh
the Congressman who do the voting"
Warns Of Danger.
Glass added that the two banking
systems-Feueral and State-had al
ways presented 'inSuperable dificul-
ties" to those seeking to draft banking
legislation.
He expressed fear that the restric-
tons placed on national banks by the
new law would force many of them out
warned that it was a danger Congress
must consider In drafting reform legis-
lation.
Glass said the 'oniy thing that ever
induced him to support the insurance
of deposits was the thought that it
might bring us approximately to
unified banking system"
He added he had been semi-oficiallv
notified that Congress would be asked
to increase by s4oo. .O00, 900 the bank de-
post insurance fund.
THAT portends, he added. that the
provision is in danger of breaking down
before 1t goes into operation"
Il don't think the fund needs what
it already has" Fletcher commented.
Outlining his views on branch bank
ing, Aldrich said branch banking sys-
tenn, il suddenly applied. would be
'haphazard assembling by promoters"
Aldrich Proposes Tax.
First, he added, there should be q
provision TO forbid the creation of banks
with inadequate capital. He said the
weakest point in the banking system
was the excessive number of small
banks with inadequate capital"
Glass replied there had been no sug-
gestion for Nationwide branch bank
ing.
Aldrich proposed a tax on new State
banEs with inadequate capital; recap
italization of small banks through the
R. F.. c.; branch banking by national
banks within city limits and adjacent
counties regardless Of State law.
The banker said branch banking was
preferable to chain or group banking
Chain and group banking are ire
sponsible and vicious" Glass remarked
Denied sl00, 900 Was Pension.
At the outset Of today's hearing,
Glass asked Aldrich whether he was
member Of the Chase Bank when it
voted wiggin 100000 a year retire
ment pay for life.
, Aldrich denied the payment was a
pension. but said an explanation Of the
circumstances would require Q long
time.
Il want to disclose Glass replied,
"that the voting Of that 100000 vas in
absolute eontrayention Of the law Of the
courts
Aldrich said differences Of opinion
| between him and W1ggtn had been OF
such character that it made stu
| alton that could not continue"
He added that large group of direc-
| lOio ACtt, ItOWCNCI, tlIdl OIQeI 10 kSt
Virgins advice he should be at the
banks absolute call
1t was for that reason. he said. that
the retired pay was voted Wiggin.
L venture to say it was not a viola
ton Of law" Aldrich added
Glass said that Chase Bank
ofhcials had come to Washington and
violently opposed" certain restrictive
provisions OF the new bank law.
! referring to Senator Long. Glass said,
without mentioning the Louisianan's
name:
1T is alleged though I don't say it
| Is a fact. that one of the bank officers
was IN constant communication with
the man who made the most Ntriolic
and violent assaults on the law made
| by any one.
Without waiting to vote on the bill.
| tered it to death. this man left the
chamber and took the next train TO
New York for an interview with this
] official''
] Senator Couzens Republican of
Michigan) asked if Glass referred to
Charles S. Mccain, chairman of the
Bank Board.
1T was Mr.. Mccain" Glass replied.
ITS the man We have never gotten
| on the witness stand" Couzens re-
marked.
"Officers Of the bank and other bank
ers came here" Glass continued, "and
| threatened the committee with defeat
Of the legislation
He added they had inspired opposi-
tion TO the bill In both Houses and
Joined forces with those who violently
opposed the branch banking provision
to beat the bill when they themselves
I believed in branch banking"