Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-04
Glass Bill Gets New Support
After Mitchell Disclosures

Testimony by Charles E. Mitchell,
former chairman of the National City
Bank of New York. before the Senate
Banking Committee, covering transac-
tons preceding the stock market break,
arouseS sharp comment. Mr.. Mitchells
resignation is held to be beneficial, and
the disclosures at the congressional
hearing are appraised as an argument
in favor of the provisions Of the Glass
banking bill.
The resignation Of Mr. Mitchell"
according to the Buffalo Evening News.
should have the effect of checking
any unfavorable reactions in the finan-
cial world That paper. however. ad-
vises that his former bank lis far too
great an institution to be judged by
the personality of single official" The
Spokane Spokesman-Review suggests
that he "enlighten the committee on
some interesting smart practices" and
adds: Under persistent questioning,
he told the committee about his rich
bonus pickings of So 500 900 in the three
years of the market boom. 1927-28-29,
the bonuses coming from the National
City Bank and its security affiliate, the
National City Co. The country sees
now how it operated The greater the
volume of securities unloaded on the
investing public, the greater the bonuses
enjoyed by Mr.. Mitchell and hiss asso-
ciates. There will be general
concurrence In Senator Couzens' con-
clusion that It's desirable that the pub
lie should know what inspired some OF
these sales and some OF the securities
being foisted upon the public. 1t has
been detrimental to the public IN
terest.'"
Senator Glass. very high-minded
man." declares the Baltimore Sun, "evi-
IDENTIFY has some doubt whether all OF
the conditions which governed that
issue of the past were OF the most
high-minded character. And the Sen
ator is not only high-minded: he is
hard-headed. Moreover, he enjoys the
prestige in this matter of having been
a critic and prophet long before the
crash of 1929. On the face OF things
it looks as though there is much IN
this business that. in the public inter,
est and for the public protection. should
be made public property" The sun
also voices the Judgment: me as
closures made by Mr.. Mitchell ana
other officials of the bank and its al
filiate. the National City Co.. have dis
tressed the country. If some OF the
practices disclosed are not in violation
of the law, then so much the worse for
the respect in which law should be
held. The country would like the prac,,
tices and the law to be examined
Jointly. Also, the country, We think:
would like the fullest investigation OF
the circumstances that surround tne
pigeon holing of the opinion given ~
years ago in the Taft administrator
by Solicitor General Lehman. IN Whlcn
the affiliation of the National City BANK
and the National City Co. was con-
demned as illegal and contrary to puo-
lie policy" s;,,
to the St. Louis Star-Times, that M:
Mitchell and others showed tnat tnen
ethics. their leadership. their VISION. mas
been so warped that in three years o.
national travail it has offered the coun,
try absolutely nothing toward recovery.
That paper concludes: We talk 20 OF
initiating the British or Canaoiah
banking system. 1t is not the British
and Canadian bank system. but Brush
and Canadian banking ethics. that pre-
vent failures in England ana Canaoa;
We need to remold American banks anu
American business, but far more tnan
that. we need to remold American
bankers and business men.
"The reassuring factor" IN the opin-
ion of the Lincoln State Journal, is
that there Is nothing to indicate that