Evening star., 1933-03-15
ROBINSON MEASURE.
HELD UP BY WOOD|N
Aid for Non-Member State
Banks by Federal Reserve
Delayed After Passage.

Senator Robinson Of Arkansas, the
Democratic leader, today told the Sem
ate in answer to questions from Sen
ator Long, Democrat, Of Louisiana. that
inal congressional action on Robinson's
State bank loan proposal was being held
up at the request of Secretary Woodin
and other Treasury oficials.
The bill was passed by the Senate
yesterday, and Is designed to extend
liberal loan provisions to State banks
under the emergency banking law.
Long asked Robinson what had hap
pened to it. informing him that he had
called Chairman Steagall Of the House
Banking Committee. and had been told
that it had not been received, but could
be acted on by the committee in 10
minutes.
Delay Requested.
"After the bill passed." Robinson an
swered, the Senator from Virginia
Glass requested that it be held at
the Vice Presidents desk for the time
being
81 myself received request this
morning from the Secretary Of the
Treasury and others that no action be
taken today looking toward final dis
sequent to passage of the bill here yes
terday, the Federal Reserve Board
raised some question as to its interpre-
tations and asked time in which to
study it"
The measure was designed to meet
criticisms of the emergency bank act
and it was thought it would expedite
the distribution of new currency to
many smaller banks.
The Robinson bill would permit nom
member State banks which have no
further eligible and acceptable assets
available to apply direct to the Federal
Reserve Banks for advances for one
year on time or demand notes, secured
to the satisfaction of the reserve banks. v
Such direct application was not avail
able to the non-member banks In the
emergency legislation adopted, except
in a section which permitted them to
seek the loans on promiSsory notes Sc
cured by direct obligations OF the United
States, for periods of 80 days. The re-
suit was a determined drive for Con-
gress to grant the concession.
Extraordinary Privileges"
Senator Robinson agreed that his
bill gave extraordinary privileges now
confined to member banks to banks not
ator Vandenberg, Republican, OF Mich1-
gan, urged that wide administrative
powers be granted in determining sound
assets upon which loans could be made.
adding that the life and death Of
thousands Of banks" depended upon
such policy.
only seven banks opened In the
clearing house cities of my State today"
Senator Vandenberg said. You can't
tell me that only seven banks IN those
cities are sound. insist that In con-
strution Of the word sound" the banks
shall not be tied to the dead bodies OF
today's values"
The Robinson bill provided that sp-
proval Of the appropriate State au-
thorities must be given IN connection
with the application. Senator Kean.
Republican, Of New Jersey made . de-
termned but futile appeal to have this
clause eliminated.
Discrimination CHARGED.
Representatives of the States. among
them Cows. Lehman OF New York and
Ritchje of Maryland, have been among
those fighting for further privileges to
the non-member banks. The argument
was made that non-member banks
were Disseminated against in the emer-
gency legislation, and that great
hardship would be worked ON small
State banks II the concessions were not
granted.
President Roosevelt, members Of the
Federal Reserve Board, Secretary
Woodin and Senator Glass, Democrat,
Of Virginia conferred for more than an
hour last night on details OF the bank
reopening program and turned stten-
tion also to the permanent banking re-
form legislation.
Woodin said the Government had in
terposed no objection to the opening
of the New York Stock Exchange, al
though no formal approval had been
given for it.
Things are working out beautifully"
said the Secretary. II am more en-
couraged than ever I have had the
most wonderful cooperation from all
over the country"
Others at Conference.
Among those at the White House
Conference were Eugene Meyer, COVER
nor of the Federal Reserve Board; Un-
dersecretary Arthur Ballantine of the
Treasury, and Assistant Secretary Ray
mond l. Moley Of the State Department.
The Federal Reserve Board an
nounced yesterday that eight Illinois
State banks. seven in Chicago and one
in Jacksonville, with capital stock rang
ing from 100000 to $5O0,OO0, had been
admitted to the Reserve System. Many
applications continued to reach the
board. and decisions will be expedited
and announcements made daily.