Evening star., 1933-02-02
Glass Measure Is Credited
With Strong Banking Basis

Passage by the Senate Of the Glass
banking bill, with some amendments,
IS favorably received by the country,
but concurrence by the House is held
to be doubtful because Of limited time.
Most OF the changes in administrative
lines arouse no opposition, although
branch banking and affiliated COM
panies still remain matter of con-
troversy.
"The bill did not attempt" according
to the Roanoke World-News, "to set up
uniform banking system for the coun-
try. Rather it sought to repair at Ger
tain points banking system that has
had the record of 1000 failures during
a period in which there has not been a
single bank failure In the Dominion of
Canada, where branch banking is Do
minion- wide. The Glass bill did not
attempt to bring all commercial banks,
State and national, small and large,
into the Federal Reserve system. It
does attempt to gather up a number of
loose ends in banking practice, some OF
which have come about through the
competition between State and national
banks, the desire of the States to lower
their standards to invite State charters,
and Of the Federal Government to lower
restrictions to invite national charters"
~
"As it finally passed" according to
the Spokane Spokesman-Review, the
bill has so many points of merit that its
failure to pass this Congress would be
misfortune. The need Is immediate
for q Federal corporation to speed the
payment of dividends to depositors in
closed banks, which have assets ap-
proximating $2,500 900 600. Immediate,
too, Is the need of sound, constructive
support for institutions that are verging
upon insolvency" The Springfield
CMass) Republican holds that "the
merits Of the bill outweigh its doubt
full features so heavily that this Con-
gress would perform an exceptional
sage part of its record" That paper
also declares that the fact that "the
present revision of the bank laws origi-
mated in the Senate under Senator
Glass personal guidance and superv1-
sion really commends it to the best in
formed financial opinion of the coun-
try, whatever differences concerning the
bills details may divide the banking
community"
I. Its principal purposes" observes the
Hartford Times, deserve public support,
of bank credit to be used for specula-
tive purposes, abandonment of 'aflli-
ates,' the creation of Federal liquida-
ton corporation to assist suspended
banks, and a Tightening of Federal su-
pervision The form of the bill as 1t
now stands has not yet been widely
published and 1t Is to its technical as
poets rather than as to its substantial
aims that influential objection has been
chiefly engendered. The present Fed
era1 Reserve system was nearly Is
years in agitation before 1t was enacted.
That the Important changes now advo-
Gated by Senator Glass are to be au-
thorized soon enough for him to regard
them as the crowning exploit OF his ca
reer Is possible despite the current
hesitant or adverse comment Of leading
members Of the House."
"There can be no contention" re-
marks, the Charlotte Observer, against
the provision that limits use Of Federal
Reserve credit for stock gambling pur-
poses. It is q square deal given the
national banks In granting them the
same powers possessed by SoAte banks
Of depost and discount organized In the
States in which such national banks are
located. National banks are permitted
to purchase and sell investment securi-
ties for their customers to the same ex-
tent as heretofore, but hereafter they
are to be authorized by their own ac-
count, only under such limitations as
the controller may prescribe"
Summarizing the general purposes
represented, the Topeka Daily Capital
says Of the measure: 1T is calculated
to put commercial banks into CONNER
cial banking and keep them there, turn
1ng dnveatn1e1at banking over to invest