Evening star., 1933-05-10
SENATE MAY GET
GLASS BILL TODAY
Fletcher Pledges Speedy Ac-
ton for Report by
Committee.
DY G. GOULD LINCOLN.

OV1vUtUSSOVs
DY G. GOULD LINCOLN.
The Glass bank reform bill. far
reaching In effect and bearing with it
sualified support Of President Roosevelt.
was expected TO be introduced In the
Senate today.
Senator Fletcher, chairman Of the
Senate Committee on Banking and Cur.
rency, said he would do al he could
to bring about speedy confederation Of
the measure and its prompt report to
the Senate.
Representative steagall Of Alabama,
chairman of the House Banking and
Currency Committee, at the same time
planned to introduce in the House
bank reform bill which in the main is
In agreement with the Glass measure.
MY. Steagall has been in conference
with Senator Glass. The negotiations
with the administration over the bank
reform measure, some Of whose provi-
sions have not met the approval Of
Secretary Woodin Of the Treasury. have
bsen left, however, In large part to
Senator Glass and the members Of his
subcommittee.
Confer with McAdeo.
At the White House today President
Roosevelt indicated some Of the features
Of the bill might have to be simphfied
or eliminated, and that the measure was
still under consideration by the admin
istration. While it may be made part
Of the administration program for the
present session Of Congress, that has
not yet been finally determined, 1t was
said. The President was In conference
this morning with Senator McAdoo OF
California, . member Of the Glass sub
committee, regarding the measure.
Steagal, like Fletcher and Glass, ex-
pressed the hope and belief that bank
reform bill may be finally enacted into
law before the present special session
closes. He plans to have the measure
discussed In his committee before long.
The House Banking Committee chair
man has long been an advocate Of in
surance Of bank deposits, in order to
safeguard depositors and to strengthen
confidence in the banks.
The Glass bill, and also the Steagall
bill, carry insurance features. though
they differ in some respects In this par
ticular Under the Glass bill. the insur.
ance Of bank deposits will be postponed
until July /, 1884, and 100 per cent In
surance will run only to deposits up to
$4,000, IS per cent insurance will safe
9uard deposits between $4,000 and
$50, 900, and 50 per cent, deposits above
$50 600.
Hssds Insurance Needed.
It Is chairman Steagall's opinion that
insurance Of bank deposits II necessary
to re-establish full confidence in the
banks today and to enable full business
recovery to proceed. Further, he holds
that II an insurance of bank deposits
had been part Of the law there would
have been no such bank crash as oc-
CURED earlier In the year.
The Glass banking bill, after months
sf consideration and conferences With
Mr.. Wooden and other representatives OF
the administration, was finally approved
BY the Senate subcommittee headed by
Senator Glass late yesterday. A num-
Der Of provisions were changed or COM
promised In order to meet objections OF
eecretary Woodin.
Whether the bank reform bill can be
passed Ut the present session Of Con-
sress depends, according to Speaker
Rainey Of the House and other congress
sional leaders, upon the vigor with which
the administration sets behind The
measure. II the President is lukewarm,
the prospects Of the measure are not
particularly bright. The opponents Of
the banking bill. some Of them powerful.
are expected to exert every effort to
prevent final action at the special ses-
sion and to push it over at least untii
the session, which opens next January.
Every bit Of delay, in their opinion, is
. gain.
Seek Business Limitation.
The opposition to the bill has run
strongly to those provisions which seek
to limit banks OF deposit to 4 strictly
banking business, to prevent the use of
Federal Reserve credit for speculation
In the stock market, and to insurance Of
bank deposits. The provision in the bill
extending the branch banking privi-
leges has been made the point Of attack
by some Of those who wished to defeat
the bill because 1t operates to cut OF the
''afnliates" Of banks Of deposit which
deal in investment securities.
President Roosevelt In his inaugural
address on March 1 went after the
banking system and the bankers In ham,
mer and tongs fashion. He said:
Finally, IN our progress toward re-
sumption OF work, we require two safe
guards against . return Of the evils Of
the old order; there must be q strict
supervision Of all banking and credits
and investments; there must be an end
to speculation with other peoples moruy,
and must be provision for an adequate
but sound currency"
Five days later In his first message
70 Congress urging the passage Of the
emergency banking act, the President
said:
Our first task Is to reopen all sound
banks. This is an essential preliminary
TO subsequent legislation directed against
speculation with the funds of depositors
and other violations Of positions Of
trust"
Zone Step In Furpsse."
And again on March 20, the Presi-
dent in his securities message to the
Congress, said: This is but one step
IN our broad purpose Of protecting in
vestors and depositors"
The bank reform bill, its Supporters
insist, is the answer to these promises
made by the President.
Ahe su6GOeotl Hao VeH maOe III
some quarters that the bill will be
pressed in the Senate, even to passage,
but that In an EFFORT to get Congress
out Of Warrington by the time the
World Economic Conference opens in
London June IL, the bill may be side
tracked In the end. The administration
forces apparently are doing all they
can to wind up the special by the end
Of the second week in June or even
earlier. The Glass bill died In the
House at the last session Of Congress,
after it had been filibustered in the
Senate for weeks. The SteaSall bank
ing bill. providing for insurance of
bank deposits, failed at the same time
in the Senate With Senator Glass
and Mr.. Steagall both working for the
passage Of q combined measure now,
however, the prospects are much better