Evening star., 1933-06-09
Bank Reform in Jeopardy.

President Roosevelt and the Demo-
cratic leaders i'll Congress are driving
for a wind up Of the present short
session by tomorrow night OF early next
week Apparently they have excluded
from their list of essential legislation,
which must be passed and become law
before adjournment is taken. the Glass
Steagall bank reform bill. This IS the
measure which is to be sacrificed, to be
laid on the shelf, although every mem
Der of the Congress knows and pre-
surlably the administration knows also,
that the bank laws of this country
need to be reformed in the interest
of the people. The bill has passed both
houses of Congress. 1t has been in
the conference stage for nearly two
weeks. Yet nothing has come out Of
conference. 1t seems, too, quite likely
that the House and Senate confereeS
could come to terms en- this measure
if they were left to consider their dill
ferences without outside interference.
With the need of bank reform legiS-
lation admitted on all sides, the Con-
gress and the executive appear particu
larly futile, and will appear more SC If
this bill finally fails. Almost it appears
that great banking houses, in opposi
tion to this measure, have discovered
that there are more ways of killing
cat than by choking it to death with
Y,.R, ,T 1,af ~i,,l ,.lr
IN devious ways their wonders to per-
form.
The Glass bank reform bill was
passed by the Senate in the last Con-
gress and sent to the House, where 1t
was allowed to die. The House passed
q bill for the guaranty of bank deposits
and that died in the Senate. The pres
ent bank reform bill carries all the
vital reforms proposed in the Glass bill
to strengthen the banking system and
also temporary provision for the in
surance of bank deposits. Is this kind
of legislation never to receive atten-
ton? Are the American people to
have no repairing of the banking sys-
tenn which failed them SO terribly dur
ing the past four years?
The late President Woodrow Wilson
put through Congress the Federal Re-
serve act, regarded as a great step in
advance In our banking and financial
system. He put it through Congress at
time when there was great division of
opinion among members of the Senate
and House over provisions carried In
the measure. 1t is probable that fur
ther banking reform legislation will
never pass the Congress until Presi-
dent is willing to do what Mr. Wilson
did and put his shoulder back of
such proposition. 1t has been charged
that President Roosevelt so far has nor
lifted finger to aid in the passage of
the bank reform bill now pending, If
he had taken firm stand in the mat
ter-outside of opposing some of the
features of the bank bills there the
slightest doubt it could have been put
through? Particularly in view of the
extraordinary legislation giving the
Government control over industry and
labor that is in process today of being
pushed to final consideration.
The Senate. with great air of vir-
tue, has adopted resolutions to delve
further into the firm of j. P. Morgan
and the income tax returns of the part
fners of that firm. Its Committee on
Banking has paraded the control which
xhis great money house has in bank
ing industry and other lines But does
this parade in itself bring about bank
fang reforms? 1t does not. The Senate
is about TO expend 100000 more of
the peoples money to carry on this in
tvestigation Of banking houses. But
when it comes to passing legislation to
prevent the Morgan firm and other
banks from conducting the business of
IN bank of deposit and of an investment
t11ouse, it seems bent upon accomplish
ing nothing final.
-S%~e%