, 1934-11-28

veltS mind except fHD himself.
Today the fat boys are having a fit
trying 10 figure out whether or Of
the New Deal intends to ask Con-
gress to set up q Central Bank OF
Issue.
Before election inspired sources
scoffed at the idea. Now that the
people have come through with an
other vote OF confidence 1t Is croop-
ing up again
Smart money here Is betting the
Central Bank plan has been re-
planted as a scare-crow to worry
the bankers into acceptance Of a
considerable widening of the Fed
eral Boards powers:
President Roosevelt has made
several adroit moves already TO get
the banking system squarely under
Washington's thumb. The Federal
Deposit Insurance Act requires
that all banks affiliate with the
Federal Reserve system by July I,
1885 or lose out on the governments
deposit guarantee. More than 80
per cent Of our banking institutions
already are on the band wagon
Secondly. Secretary Of the Treasury
Morgenthau has been Wagtng a
winning fight to bring the func-
tons OF the Comptroller OF the Cur
rency's office under his manage
ment. Finally, Mariner Eccles.
newly appointed Governor Of the
Federal Reserve Board, favors re-
moldinE the Federal Reserve Sys-
TEN into "a Central Bank without
actually giving IL that name.
Senator Fletcher OF Fla, chair
man Of the Senate Banking and
Currency Committee. announced
several times before election there
would be no revolutionary" bank
ing reforms attempted BY the COM
ing session. Recently he has sent
out a QUESTIONABLE TO the Nations
leading financiers asking for their
reactions TO the idea Of a Central
Bank. Fletcher personally does not
swing many anvilS but his position
AS Committee Chairman gives him
power to push or Stifle legislation
Answers To this questionnalre
could be tabulated In advance. The
bankers very emphatically don't
want q Central Bank running their
business. II would seem very
logical, therefore, that they be ask
ed to compromise on liberalization
OF the Federal Reserve Act
Concentrate At present. the
boards Of directors OF the twelve
Federal Reserve banks elect their
own Governors, or executive Of
ficers. Those who should know
say Congress Is going TO be asked
IN January to provide that the
President make such appointments.
Further, Washington control Of
Nopen market" operations VIII b
recommended, II Is predicted. This
involves purchase and sale OF gov
eminent securities on the open
market. The bankers themselves
now direct how and when these
purchases and sales should be
made. Legislation said 10 be IN the
making would transfer this func-
ton 10 the Federal Reserve BOARD,
which always has been appointed
by the President.
The grapevine says the New
Dealers count on the Central Bank
threat TO scare the bankers into
accepting these Federal Reserve
reforms-which would concentrate
banking control under the govern
nIent equally as well. IL Is being
pointed out that many members OF
the incoming Congress favors a
Central Bank. with only President
R~oosevelt's personal influence TO
block IL.
Taxes--Sure, thereIl be q tax
bill" said a member OF the Ways
and Means Committee. We've got
20 re-enact the law that yields
5000 900 900 or revamp In with new
taxes. we want To cut down some
OF the taxes that 0Verburden motor
lists. The whole taxable field has
been surveyed during the summer.
some Of the boys favor remission
of certain business taxes II indus
try will spend money for employ
ment. Nothing tangible Is In sight
Better business conditions during
the next six months would justify
us in easing up on new taxes. be-
cause we would get more revenue
from regular taxes"
Elephants--Among other signs OF
the times, public utilities interests
should give heed TO President
Roosevelt's recent suggestion that
the state Governors group Them
selves into regional conferences
with a single spokesman dealing
with washington from each region.
Administration plans 70 control
and regulate sale OF power would
be made easier III each section OF
the country were In harmony as 70
its needs and desires.
Rural electrification is scheduled
as an important angle Of the ad-
miniStration's new public work pro-
gram. Also, the government has
Ia dispose OF q lot OF power gen.
Grated at its various public dams
IL they are not 70 be classed as
white elephants.
Help!--PatriDts In the State and
Navy Departments are wishing
earnestly We had a smart publicity
man IN London to help Norman
Davis and Admiral Standley get a
little American propaganda into the
news from the naval conference.
When England made her proposal
that she and the United States give
Japan naval parity in principle.
meanwhile getting a gentlemen's
agreement from the Jsps not to
build I'D 10 Anglo American
strength. cur first stories intimated
washington was considering and
might accept. Veteran newspaper
men here who have served their
time abroad promptly slIrEnlsed that
first word Of the British proposal
was fed TO American correspondents
by q British spokesman.
During the washington Arms
Conference OF 1922 Lord RiGdeIl
did q splendid Job OF ~publictzing for
khn RrLkIah American nnnnrLarz Ia.