Evening star., 1933-04-08

W0odin Praises Plan.
The chief question at this time, the
Secretary said, was to get money now
tied up in the banks into the hands Of
the depositors.
He praised the plan as one funda-
mental and ready to operate, but said
details would not be announced until
State authorities had approved it.
The Secretary also told reporters the
feopening Of banks over the country
was going along in a surprisingly good
way and he hoped that reopenings
could be increased.
He declined to give specifications, but
declared the Government was giving
full attention to opening of State banks
and promised the program would be
pushed to the utmost.
Details Of Bill Being Settled.
Meanwhile details of a far-reaching
banking reform measure were being set
tied by Senator Glass, Democrat, of
Virginia, and Representative Steagall,
Democrat, of, Alabama, for introduction
In Congress next week.
Steagall, chairman Of the House
Banking Committee, discussed the bill,
which includes q provision for a 100
per cent guarantee OF deposits in Fed
eral Reserve member banks through a
$4,000, ,000, 600 mont Government corpora
ton, with President Roosevelt yesterday.
"You may say" Steagan told news
paper men, that the proposals prin-
ciple Is understood to have the approval
of the administration"
He added that 1t was not In any sense
. Government guaranty plan.
Branch Banks Unsettled.
Based on the Glass banking bill of
last session, the measure will provide
for separation of investment affiliates
from banks within two years; increase
minimum capital for national banks
from $4,000 to $4,000, and provide for
dismissal of bank officials found in
competent
One of the sections still unsettled re-
1ates to branch banking. A Senate
banking subcommittee now is writing
q tentative draft of the measure.
Steagall explained that the $2,000,-
100000 corporation would be formed
with an initial capital of $500, 0,000, 900,
along the line of Senator Glass pro-
posal which died in the last Congress.
His bill called for the creation Of a
corporation for the liquidation OF the
closed banks.
Source Of Funds.
As in the Steagall guaranty bank
deposit bill that passed the House and
failed in the Senate in the last Con-
gress, the initial capital of $500 900 600
would be raised by requiring Federal
Reserve banks to subscribe l50,000,-
600 of their surplus while the Treasury
paid $50 1000, representing part
of the earnings of the Federal Reserve
banks paid in lieu of franchise taxes.
The remaining 5000 ,000, 900 would come
from a levy of fourth of / per cent
on deposits in Federal Reserve banks.
The measure will provide, 1t was
said, for frequent examination and IN
spection of banks and for their regula-
ton and would permit the corporation
to ''get rid Of State banks at any time.
Glass already has reintroduced his
bank bill as it passed the Senate IN
the last Congress, but which Steagall
killed in the House Banking Commit
tee. Steagall said it would be intro
duced by the Virginian again Monday
with the guarantee provision.
Retains Chief Provisions.
Many additions have been made to
the Glass bill. including prohiniticn
against the payment of interest on de-
mand deposits and a clause to prevent
interlocking directorateS between banks
and industrial concerns.
The bill still retains the chief pro-
visions of the Glass bill, =, prevent
seepage of Federal Reserve credit into
speculative channels and to require
divorcement of security affiliates.
1t has, however, no provision reqlur-
ing commercial banks to separate their