Evening star., 1933-04-28
Text of Glass Speech
Senator Cites Campaign Speech Praised by Roose-
velt to Show Consistency in Opposing
Initiation Move.

The address OF Carter Glass, .ormer
Secretary of the Treasury and Demo-
cratic Senator from Virginia. in oppo-
siticn to the Thomas imitation amend
! ment to the farm bill follows:
was unable because OF illness, to
| make more than one speech during
the entire presidential campaign and
in that speech. with all the righteous
ind. d.gnatiOn that l could summon, and
! in terms perhaps OF some bitterness,
reprCached the then President OF the
United States and Secretary OF the
Trla' ury for laying that this country
was within two weeks of going of the
gold standard. The reaction in that
speech-and l do not say it i'll any
boaSt1ul w&y-Was that now have
bound in. excess of 5000 kilograms and
letters from people. mostly strangers TO
mo- commencing that utteranre.
The nrat telegram In the FIRST bound
vo.llme is one from Franklin ID. Roose-
welt now PIE 2;ldent uf The United
States. who said the speech Mas TO
him IN nlsp.i ion. In his public
utttgan;es at B.GOk.yn and IL other
places he t,:.I.liy commended that
part OF the sE>eth which so bitterly
criticized his political adversary and
competitor for suggesting that this
country vas III imminent Qt.IlotI ol
going of the gold standard.
This simple recital will indicate that
I have not deserted anybody or any
party in opposing the bill. l am SIM
! ply consistently maintaining an att1-
tude of earnest conviction Oh public
uue.t Ons. which is mere i'm m)ortant to
me than the favor OF party or poem
/ tate.
Bank System Change HIT.
I Cbje.t 10 the nrAt Section Cf the
bal b>..,llse g. I said yesterday, II
create; the Ecloral Reaerye Bank
System into s>ryile agency OF the
Trea. ury Department.
1t was not instituted for that pur-
pose We took the reserve funds OF
the national banking associations OF
the United States by law out OF the
money centerS, rescued them from the
hands of the stock gamblers and I'M
pounded them in regional Federal Re-
serve Banks for the avowed use OF
commerce and industry and agricul-
ture Giving the Federal Reserve
Board the right to define eligible paper
within certain limitations. We expressly
denied to it the right to comprehend
in its definition those who were en-
gagged in stock gambling and specula-
ton. and We Set up this system. not
as an adjunct to the Treasury Depart
ment-wnich has used it as door
mat-not to finance the public IN
Gebtedness of the United States but
t. respond to the requirements OF the
tradesmen and Of the industry and OF
the agricultural interest OF this coln-
try. the agricultural interest being gwen
precedence in the maturity OF It's paper.
The first section OF this bill trans
forms it from system OF that kMd
INTO a mere agency of the Treasury
Department. to be dominated by the
Secretary Of Agriculture. and TO De
used not for business purposes. but 10
enable the Government to noat It's term
and time Indebtedness.
Today the Federal Reserve System
has a gold supply Oh the 40 per cent
reserve basis that would enable 1t TO
expand its credits nearly $4,000 .0OO 0U0.
1t has choked its portfolios with nearly
s.. 600 900 of Government bonds, prac-
tically by direction of the Secretary
of the Treasury and the board here, not
a dollar of which it required Ill its
business.
Financial Adventure.
1t did that in financial adventure
upon the principle OF the insane Colds
b; rough bill which assumed that by
imitation of the currency the commodity
prices of this country would be III
creased 1t has today every dollar OF