The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-03-31
ELY, MINNESOTA.

the public at large but 1t is quite
generally known among people who have
to do with these matters, that there is
controversy going on in financial
circles that has to do with the elimina-
ton of State Banks. My position In
the matter has been that as Senator
representing State having both State
and National Banks, it is my duty to
protect, so far as possible, the interests
OF both. 1t is my conception of justice
also that it is the duty of the Federal
Government to take the same position.
State Banks are not members of the
Federal Reserve system and there were,
at the time, something like 460 State
Banks in Minnesota. Under the law,
at that time, they could not go to the
Federal Reserve Banks directly and get
the cash as National Banks were per-
mitted to do
| We tried to have an amendment
adopted to the bill giving them that
privilege because under the circum-
| stances it was very important on the
day OF opening that every bank should
nave sufficient cash. We were told by
Senators representing the Administra-
ton the banks would open the next
morning, Friday, under the new law.
1t was pointed out that if that was
true State Banks would be in danger
because OF Lack of cash. In the hysteria
of the evening Senators refused TO vote
/ for the proposed amendment and an
ticipating what would happen if the
National Banks opened the next morn
ing on different basis from State
Banks 1 did not want to assume re-
sponsibility for the resulting crash by
voting for the bill.
! However, thai night after the bill
was passed a conference was called at
| the White House and 1 am informed
the danger was called to the attention
of the President and as a result ne
issued proclamation poStponing the
opening of National and Federal Re
serve Banks from Friday morning until
the following Monday and Tuesday.
This was to give the Congress the OPP
portunity to pass the necessary legis-
lation that had just been voted down
that evening but necessity for which
became apparent after the bill had been
passed.
The Treasury Department prepared
an amendment that was introduced by
Senator Robinson of Arkansas II
passed the Senate last Tuesday. The
day after it passed the Senate it was
discovered that it had not been sent to
the House. This was done at the re-
quest of Senator Glass, the Federal
Reserve Board and the Secretary of the
Treasury. 1t still remains in the
| Senate.
However, yesterday the Chairman of
the Banking Committee of the House,
Congressman Steagan, introduced q
similar amendment in the House and he
assures me it will be passed today and
sent to the Senate. If it again passes
the Senate I hope the President will
sign it. regret this delay very much
as think it has done a great deal of
damage to State Banks.
1 cannot but firmly state my con-
viction that subsequent events have
justified my position and vote at the
same time of the passage of the bill
BY passing this Amendment Congress
will to some extent rectify the mistake
made that night. However, feel that
great damage has been done to State
Banks by weeks delay in legislation
giving them the same right to directly
get enough cash from Federal Reserve
Banks on basis of equality with Ma
tional Banks.
This is a technical matter but of
great Importance involving millions Of
depositor's money. If this statement is
not clear I will respectfully ask that
you take it to some state banker, OF
whom there are nearly 500 in Mime
sofa, and ask him to explain it.
My vote was not a vote against the
President. The position I took was
taken for the purpose of protecting the
depositors in State Banks.