Evening star., 1934-03-04
HOUSE insurgents
REVERSE POSITION
TO PASS BANK BILL
Opposition Overcome by
Threat of Shaken Faith
in Recovery.
MEASURE CONTINUES
RESERVE NOTE SYSTEM
Author of Act Forces Vote to
Show Strength Of Party
Regulars.

Told conn1cC between the White
House and Congress would shake con-
fidence in the recovery program. the
House yesterday battered down
Democratic insurgency to complete
congressional action on the Fletcher
Steagall bill which permits the con-
tinued use Of Government obligations
to back Federal Reserve notes.
The administration measure was
sent to the White House by q record
vote of 3l0 to SO after the Brown
amendment to deny the President
power to continue the authority for
an additional year was defeated by
a standing vote of 1913 to 80.
In the face of this the leaders Of
the insurgents. Representatives Brown
of Kentucky and Patman Of Texas.
who sponsored amendments to limit
the continuance and the Presidents
authority, gave in and voted for the
bill on final passage.
Democratic leaders, who were
trounced late Friday by the insur-
gents, aided and abetted by some Re
publicans, rounded up their forces
overnight.
Confidence Waning.
It was not until, however. Repre-
sentative Summers, Democrat. Of
Texas. warned that conflict between
Congress and the White House over
the measure would endanger conf
dence Of the people in the economic
that the YoVnlf roll
lapsed.
The measure, already passed by the
Senate, continues for one year from
yesterday the 1882 act allowing banks
to turn in Government bonds to Fed
eral Reserve Banks for currency, and
empowers the President to continue
that authority for another IL months
from March 3, 1885.
When the House reconvened yester-
day, the Brown amendment to allow
the President. In his discretion. to
continue the authority for only year
and for its suspension anytime within
the period was pending. Nearly two
hours Of debate followed before Chair
man Steagan. Democrat. Of Alabama
of the Banking Committee forced q
vote that resulted IN its defeat.
The Patman amendment to limit
the continuance of existing law until
July 3, 1884, was quickly disposed OF
then.
Record Vote Obtained.
At the insistence Of Representative
Parker, Democrat, Of Georgia and q
large number of Democrats who had
voted with the insurgent leaders and
Republicans who favored one-year
limitation, a record vote was obtained
which overwhelmed the anti-adminis-
tration group.
Only IA Democrats cast their votes
with 19 Republican and Farmer
Laborites against the bill, while 76
Republicans and 234 Democrats voted
for it. Speaker Rainey followed his
usual custom on administration bills
and cast a vote for it.
The Democrats voting against were:
Burke, California: Dingell, Michi-
gan; Dunn, Pennsylvania; Gray. Indi-
ana; Knute Hill, Washington; Hoep-
pei, California: Lloyd. Washington;
Murdock, Utah: OMalley, Wisconsin;
Smith, Washington; Wallgren. Wash
ington; Wideman, Michigan; White
Idaho; Zioncheck, Washington.
Republicans against:
Blanchard, Wisconsin: Bolton, Ohio
Christianson, Minnesota; Dowell, Iowa;
Foss, Massachusetts,; Gilchrist, Iowa;
Lambertson. Kansas; Lemke, North
Dakota; McFadden, Pennsylvania
Peavey. Wisconsin; Reed, New York;
Sinclair, North Dakota; Swick, Penn
sylvania; Taber, New York; Thurston
Iowa; Tinkham, Massachusetts,; Tobey
New Hampshire; Withrow, Wisconsin;
Woodruff, Michigan.
Farmer-Labor against:
Arens, johnson, Kvale, Lundeen
and Shoemaker, all of Minnesota.
In a plea for passage without
amendments, Representative Byrns OF
Tennessee, Democratic floor leader
told the House Secretary Morgenthau
Continued on Page 2, Column 81