Evening star., 1933-03-16
HOUSE POSTPONES
BANK BILL ACTION
Treasury Given Time for
Further Study of Robin.
son Measure.
By the Associated Press.

BY the Associated Press.
Chairman Steagall of the House
Banking Committee said today the
Senate resolution to provide for d.
rect Federal Reserve Bank loans to
non-member State banks will be de-
layed temporarily"
Steagall said the delay was designed
to permit further study of the measure
at the Treasury.
The Treasury may want to pro-
pose some changes" Steagall explained.
so We will delay ii temporarily"
The measure, sponsored by Senator
reached the House today after being
held up in the Senate for a day after
approval there 1t was referred i'm
mediately to the Banking Committee.
The committee may meet on it to-
morrow Steagall said, but 1 am not
certain Of that yet"
Representative Byrns. the Demo-
cratic leader, said the measure would be
considered as soon as Steagall's COM
mittee reported it.
Banking debate broke out in the
House when Representative Busby,
Democrat, of Mississippi, said there was
a $50, 100000 profit for banks in issuing
the new Federal Reserve bank cur
rency.
Bonus Question Brought Up.
"A bank takes a Government bond
paying per cent interest and gets cur
rency for it." he said. 1T has the use
of the currency and collects the interest
on the bond at the same time.
Then he brought in the veterans
bonus question. asserting the Govern
ment has been paying to the pluto
cratic class"
Since 1917, the interest paid on
tax-exempt securities has been S1l .6l4,-
1000. That is bonus paid to the
big boys and you haven't heard any
complaint about it, We ought to re-
lieve the taxpayers of this cost
Senator Huey Long of Louisiana un-
covered the State bank bill delay in
the Senate by questioning Robinson as
to why the House had not received it..
The majority leader replied that
Woodin had requested that it be held
up and that Glass wished to ask re-
consideration Robinson also said the
Reserve Board wanted time to study it
first
Myer and Mills Assailed.
After Robinson explained the situ-
alton Long said:
If We have to get permis ion Ct this
gang, the Federal Reserve Board. We
are in the hands of very bad set of
doctors. If we've got to wait on that
board we'll put the State banks out Of
business.
To my friend the President III say
that he better get this set away. If
he wants to do anything god he'd
better ride Eugene Myer and Ogden L..
Mills out Of town"
Late in the day Secretary Woodin
said in formal statement that licenses
were being granted banks throughout
the country with all possible speed and
that. while every possible effort had
been made to act upcn all applications,
delay in some cases had been found
inevitable
In some cases. also, steps are being
taken which as soon as completed will
make it possible for reopenlng to be
licensed" he said.
The passing upon applications Of
banks to reopen tor normal functions
has taxed the Treasury and Office of
the controller OF the currency to the
utmost, Woodin said.
Additional licenses will be issued
from time to time and the public should
understand that banks hereafter IL
censed to be opened for normal func-
tions are to be regarded in the same
way as if it had been possible to issue
the license by today"