Evening star., 1933-03-13
New Money Delivered.

New Money Delivered.
The new expanded currency was being
delivered to banks in need of additional
FUNDS. but in several instances clearing
mouse certificates still were being circu-
iated because the new money had not
arrived.
The Reconstruction Finance Corpor-
alton again could make loans.
. Arkansas banks remained on a re-
stricted basis pending the formulation
OF a S'~te-wide reopening program.
Ell Goes to Subcommittee.
Mean Shile the Senate Banking Com
mittee ssferred the Glass bank reform
bill to q subcommittee headed by Sen.
ator Glass, Democrat, of Virginia,
author OF the measure. The bin prob
ably will form the basis for President
Roosevelt's banking reform program.
Regarding the Robinson measure,
Senator Glass said the emergency bill
already covered the Robinson proposal
in larger degree than the Democratic
leader proposed and therefore the lat
ter was unnecessary.
Robinson said he was not certain
whether his measure. was "a material
modification of existing law"
Under the proposal, State banks could
apply for direct loans, but the applica-
tlons must be accompanied by written
statement from the State banking de-
partments that the institutions are
sound.
Senator Glass said "the law already
provides that any individual, concern
or corporation, including State banks,
may receive direct accommodations
from Federal Reserve banks so that this
matted is already covered in a larger
degree than is provided in this BILL"
Appeals for Small Banks.
In the House, Representative Can
non Oemocrat, Missouri, said that
unless supplementary legislation wefe
enacted at this session of Congress the
small country banks would be destroyed.
The emergency banking legislation
passed last week, he said, went to the
fundamental structure of the country.
The big city banks brought about the
financial crisis, he said. adding that the
little country banks had been sound
until the large institutions brought
this situation down on u.s."
Attacking the Postal Savings System,
he said that the Government guaranteed
deposits in it, and that no farmer in
overa!ls can go to the post Office for Q
loan"
He advocated legislation to guarantee
future deposits in small banks as a
means OF keeping them in operation to
benefit the small farmer.
Woodin Issues Statement.
Meanwhile, a statement came from
Secretary Woodin that people have
responded to the first step in the Gov
ernment's plan Of financial reconstruc-
tlon with common sense and sober real
1zat1on OF actual conditions"
He remarked that inquiries had come
TO the Treasury about opening of the
San Francisco banks, but that those
institutions were opened on regular
schedule as in other reserve cities.
Word from New York" he added.
is that all the reopened banks are
functioning as If there had been no
interruption in their activities. People
are satisfied that their deposits are saie
In these banks, feeling doubtless to
q large extent the result of President
RooSevelt'S speech last night.
Naturally the Treasury is delighted
with this indication of the success of
the plan un6er which regular banking
was re-established."
At the Treasury it was said that the
rule being followed in judging active
and recognized clearing house cities
was whether the clearing houses have
been in existence for some time and are
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