The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-10
DRAMA MARKS
ACTION ON u. 5.
BANKING Law
Extraordinary Speed Puts
Measure Through on
Introduction Day.
LONG AND GLASS CLASH
House Stamps Approval on
Bill in Forty Minutes;
Senate Slower.
BY RAY TUCKER
Times stan Writer

ID nal IOOhEk
Times stan Writer
WASHINGTON. March 1O.-De-
spite indefinite extension of the par
tial bank holiday by President
Roosevelt, the nation today was
nearing another act in the greatest
domestic drama since the fall Of Fl.
Sumter.
AS result of the extraordinary
speed shown by congress and the
President in enacting legislation to
expand the currency by billions of
dollars, officials believe banks will be
functioning normally fairly soon.
They hope that the prospect of
plenty of money for old and new
depositors will restore confidence,
and strengthen banks by thawing
out hitherto frozen reserves.
The delay in calling off the hOli-
day was necessary so that PreSi-
dent Roosevelt and his aids may
frame regulations setting forth what
banks may open, and upon what
terms.
Will Keep Rigid Control
Before issuing currency to APP
plicant institutions, it is desired to
have a greater check on their status,
although the preliminary work
virtually has been completed by ma
tional bank examiners.
What really is sought is a check
on expansion, or, as official spokes-
men put it, rigid control. 1t is the
administration aim to make the
currency flexible, but manageable at
the same time.
Despite the postponement, there
is an air of hope at the capital.
Conservatives and progressives on
both sides Of the aisle believe that
the crisis that began on Inaugural
ton day has passed its worst stage.
1t is pointed out that the new
measure should lead to the fairly
immediate reopening of 5000 of the
$500 member banks Of the federal
reserve system.
1t is expected that they will look
after the needs of most non-mem-
Der state banks possessing COM
mercial paper or government obliga-
lions that can be passed on for re-
discount ct federal reserve bank.
State Banks to Be Aided
Hitherto a member bank could not
afford to extend such service, but
now it can, and at a small profit.
With many senators fearing for the
fate of $4,000 state banks under
the new far-reaching act, an
amendment or regulation provid-
ing them with prompt access to
reserve facilities may be framed.
Although the amount of cur
rency that may be issued runs into
unestimated billions, administra-
ton spokesman express the hope
it soon will result in restriction. If
confidence is restored, and cash
comes out of the old sock, they
feel the bills provisions for CON
trolled expansion will have chief
ly a psychological effect, and that
outstanding currency now placed
at $6,500,0OO,OOO will drop
Despite general recognition that
the bill was drawn hastily, and may
have faults, both chambers passed
it in record time. It was intro
duced in the house at 2:55 D. m.
and signed by the President at
8:37 p. M.
Scenes attending its frantic rush
through the legislative machine
were reminiscent of war days.
House Works Fast
While the senate INDUCED in
heated debate on the committees
report, the house adopted it after
forty minutes discussion and with
out a roll call. The senatorial ex-
element was precipitated by Sen
ator Huey Longs demand that state
banks be permitted to join the fed
eral reserve, to take advantage of
the bills provisions and reserve IA
cilities. The "Kingfish" and Senator
Carter Glass Dem, va, had sew
eral brisk encounters.
At one time the Virginian broke
into a dammit" while Mr.. Long
charged that Mr.. Glass was mis-
representing" the meaning of his
amendment Mr.. Glass uttered sew
eral characteristic denunciations Of
the bankers, declaring they had not
lifted finger to help themselves"
He expressed some contempt for
gold reserve that can't be used
when needed" The galleries. re-
taxing from the strain, laughed so
hard they had to be admonished.
Even smiles, too, were frozen assets
for the day.
Rushed to White House
At 7:30 the senate passed the
measure by 70 to 7, and the perma-
nent tissue-covered parchment bill,
which had been prepared in adj
vance, because of assurance Of IA
vorable action, was signed by
Speaker Henry T. Rainey and Vice
President John N. Garner. II was
put in a taxi and sent to the White
House.
There, Mr.. Roosevelt collected
Secretary William H Woodin and
a few old friends in the oval room
at the rear Of the second floor. He
sat at q desk in the midst Of
room that showed signs OF only re-
cent occupancy.
AS he fingered the pen in a pose
for the stills" a fuse blew out, and
delay ensued while Mrs. Roosevelt
found another. Again he pretended
to sign, but she called out: Frank
lin, fix your hairl"
He obeyed, like a good husband.
and then signed himself into a
banking dictatorship. He expressed
thanks for the unity Of action and
cooperation congress had exhibited.
The bill designed to send silver
stream flowing through trade and
banking channels was signed with
s1.50 fountain pen belonging to Miss
Nancy Cook, who runs Mrs. Roose-
velt's furniture shop.
Gazing at the pen in wonderment,