Evening star., 1933-06-01
The Political Mill
By C. Could Lincoln.

The Glass -Steagall bank reform bill
was "sent to conference" by the Senate
and House last week. Ordinarily con-
fereeS on important measures OF tht'
kind meet almost Immediately and get
down to work But the confereeS or
this measure have held no meeting W
until today, when 1t is understood th'
first conference may take place. 1t !!
quite true that the confereeS on thi!
measure, including both Senator Glas!
and Chairman Steagall of the HOUSE
Banking Committee, have been busy
with other matters, and Mr.. Steagal
had the so,called gold contract bill OF
his hands. Nevertheless, there is feal
among some Of the supporters of banl
reform legislation that secretly an effor
is being made to delay and stall of fina
action on the bank bill. If 1t can bt
held back until the last minute-witI
the leaders pressing for adjournment
June 10 or soon thereafter-possibly
the measure might be sidetracked. Oi
course, this would be strenuously op.
posed by Senator Glass, who has fought
in season and out for bank reform legis.
lation Of this kind, which has been JUS
as strepuouSly, though less openly, op-
interests In New York.
The administration has given It
blessing, according to Senator Fletcher
chairman Of the Senate Banking Com
mittee, to the investigation Of tn,
house of Morgan and other private
banking houses, now under way. Anc
the hearing, with its sensational dis
closures of names on preferred" list!
of Morgan clientS-men whose name.
are known far and wide-has to SOM
extent showed into the background thi
bank reform bill, which is designed Il
curb the very operations into which
the committee is now inuuiring. Vi
to date the administration, however
has never given its blessing to thi
bank reform bill And some of thu
more reStive friends of this kind o
legislation are asking why not?" I
is quite likely that if the bank reform
bill is not considered and reported
from conference at an early date
some Of them will rise on the floor O.
the Senate and ask publicly for show.
down on this legislation.
It is no secret that Secretary Woodir
OF the Treasury Department has beer
opposed to the Glass bank reform bill
that he has done all he could to delay
1t. Mr.. Woodins name has been OF
the lists Of so-called preferred" client
OF the firm of J. P. Morgan g. Co. In
deed, it was found also to be on thu
latest list of men to whom the Morgan
firm sold stock of United Corporation
The Secretary of the Treasury was no
at that time in public office, and i
would have taken wide stretch O
imagination to place him in the Treas
ury Department today back in 1929
when these stock transactions tool
place. But Mr.. Woodin is in thu
Treasury Department now and what h,
does or does not do about bank reform
legislation and legislation which pro.
poses to deal drastically with such pri.
vate banks as the Morgan bank is o.
considerable Importance.
4 **
This Glass bill. whose author ha!
been held up to the public gaze as 6
TREND and defender of the house OF
Morgan. would compel the Morgan firm
to give up either its business as a banl
OF deposit or as an investment house
within a year: it would provide fol
regular examinations of the Morgan
bank if 1t remained a bank of deposit
and 1t would prohibit its partners hold
ing directorateS of public utility. anC
other industrial corporations if 1t re-
ma1ned bank Of deposit. Does an,
one suppose that Mr.. Morgan and hi
partners are anxious to have the Glas
bill enacted into law? Yet the admin
1stration, because 1t Is heraIded tha
the President has given approval Il
pressing the inquiry by the Senate Com
mittee into the Morgan firms operation
Is described as no friend of J. P
Morgan & Co. At the same time
through its Secretary Of the Treasur,
at least, the Roosevelt administration
has been opposing the passage Of tn,
Glass bill.
X \ X
The Glass bill contains provision fo
the insurance of bank deposits. Tht
administration and the President him
self have been reported to be opposed
to such insurance. Yet the demand fo
some kind of guarantee of bank de
posits has grown so strong on Capito
Hill that it has been written into tn,
Glass-Steagal bank bills by overwhelm
ing votes. Senator Vandenberg o
Michigan, Republican, succeeded IL
having placed in the Glass bill as /
passed the Senate an amendment pro
viding for immediate guaranty of banl
deposits up to $2,500, as a temporar,
measure, until at the end of the yea
the more permanent structure for in
Surance of bank deposits under the bill
goes into effect. The Michigan senator
unless there is prompt action on th
bank reform bill, will offer his banl
deposit proposal as an amendment Il
the public works and industries bill O
one of the other bills that has vet t,
come up for consideration in the Sen
ate. He believes that he can have i
written into one of the measures, i
necessary.
Of course, the Glass -Steagall bill may
be brought out of conference within
the next few days and agreed to il
both houses preparatory to being for
Warded to the White House. Certainl,
that Is the hope of the great bulk o
members OF Congress. But the cours,
OF that measure will be watched witt
care from now on by those who fea,
tnaG efforts to hamstring it are bein,
made.
y X
@NN PdNACdh pOIILICS nave Deen DfeCtI
much in allegiance since the presen
Congress met last March. True, som
OF the Republicans in the House an,
Senate have risen in their places an,
denounced the administration imitation
proposals and more recently have at
tackled the proposal to wipe out tn
sold contracts for the payment of Gov
ernment and other bonds. How n1ucl
these questions will figure in cominJ
campaigns remains to be seen. The Re
publcans, too, have undertaken to max,
as much as they could of the soreness
among the World War and other veter
ans at the administrations pairing
down and elimination of payments Il
them. However. taking 1t by and large
Republicans politics have been largel,
adjourned during the last few months
X X X
Walter Edge, former Senator from
New Jersey and more recently Amer