Evening star., 1934-05-13
lV0TE. ON INDUSTRY
|L0ANS GOES over
Johnson Amendment Precip-
itates Long Argument on
GIaSS-BarkIey Bill.
By the Associated Press.

By the Associated Press.
The Glass -Barkley bill. - To- make
available more than half billion
dollars OF Government and private
money for five-year loans to indus
tries unable to obtain needed work.
ing capital elsewhere was taken up
by the Senate yesterday but Q vote
went over until this week.
The parliamentary blocks had been
withdrawn for quick passage without
much debate. but Senator johnson,
Republican, of California, offered an
amendment to authorize Reconsrtuc-
ton Finance Corporation 20-year
loans to municipally-owned power
projects and a long argument fol-
lowed. No vote was taken on the
amendment.
Glass Accepts Amendment.
Previously Senator Glass, Democrat.
OF Virginia, author Of the bill author
izing the IL Federal Reserve banks
to make loans to industry out OF
their $280,00c, 900 of surplus funds,
had accepted an amendment by Sena-
tor Barkley, Democrat, of Kentucky,
authorizing the corporation to make
fve-year loans to industries from a
$250,000,000 fund, but only where
such industries have exhausted every
effort to obtain financial assistance
under the Reserve system provisions.
An amendment by Senators Van
denberg, Republican, OF Michigan,
and Copeland. Democrat, Of New
York, to permit the corporation to
loan to bank receivers 100 per cent
Of the appraised value of the assets
held by the r. F. c. for loans was
rejected without a record vote.
Vandenberg argued the appraisals
on which existing loans had been
made were timed year ago and II
100 per cent loans were made they
would still be conservative because
Of the recovery value" of the assets.
Proposes Bank Pay on.
Copeland served notice he would
seek vote on another amendment
similar to the Mcleod closed bank
pay-of measure. 1t would authorize
the r. F. C. to make loans ON the
assets of closed banks where there
seemed to be hope that orderly liqui-
dation within q reasonable time would
give them full value
The johnson amendment for 20
year loans to municipally-owned util-
tiles having contracts with the Gov
eminent drew from Senator Glass an
excoriation of what he called the
Governments liberal policies in dis
posing Of the taxpayers money.
I'VE have made mendicants Of the
48 States of the Union." Glass as
serted.
I'VE have practically issued en-
graved invitations for them TO rush
on Washington and borrow money
the taxpayers money, because that's
all we have"
johnson Cites Example.
johnson, illustrating the effects Of
his proposed amendment. has said it
would enable a municipally-owned
utility plant in Los Angeles to buy
out private competitor.
Glass asserted the measure would
operate for the benefit of a privileged
class-those fortunate enough to have
Government contracts"
II am fundamentally opposed to
the Government of the United States
constituting itself a central bank to
be loaning money for all sorts Of pur-
poses," he said.
He added he had been opposed to
r. r. C. lending to industry, but
went along with the President" SO
as not to be an obstruction in an
emergency.
Call Emergency Measure.
r. F. C. lending, he said, had been
recognized at every stage of the pro-
ceedings as an emergency PROPOSE
ton" Johnson's proposal, he con-
tended. would be merely a community
load to one Of the Nations largest
cities
When Senator Bone, Democrat, Of
Washington, urging approval Of the
amendment, cited cases of successful
municipal construction and operation
of utility plants in his State, Glass
countered with the suggestion that
there was no reason why other mu-
inequalities should not operate SINH
larly by using their own money in
stead Of the Federal taxpayers"
Bone asserted the Grand Coulee
and Bonneville projects in the
Northwest would be even greater in
scope than that centering in Muscle
Shoals, and that provision should be
made so that none of the power gen.
Grated would 20 to private companies,