The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-12

lg development came over the
named Mariner S. Eccles of
federal reserve board. Mr..
Eccles is the first far west
erner to hold that position.
He takes up his duties today,
subject to later confirmation
by the senate.
Important to bankers are Mr..
Eccles' unusually progressive ideas.
He is committed definitely to a pro-
gram that startled Washington
when it was outlined before a SEN
ate committee in February, 1888.
Appeared as New Dealer
He was asked to testify as q
western Republican but appeared
as New Dealer and proposed:
l. Unification of the banking sys-
tenn.
2. Control of the accumulation CT
capital by high income and inheI-
itance taxes.
3. Prohibition of child labor; pro-
vision for minimum wages, old age
and unemployment insurance.
4. Reservation of real property
and sales taxation to the states and
income and inheritance taxation to
the federal government.
5. Creation of a federal agency to
pass upon all foreign and domestic
securities before they are sold to
American investors.
6. Federal control of all means Of
communication and transportation.
Z. Creation Of a national econom-
ic planning board.
8. Federal payment Of depositors
in banks closed in 1930-31-32-33.
9. Cancellation of war debts.
Argued for Cancellation
Mr.. Eccles suggested cancellation
in exchange for foreign currency
sterilization, ornaments reduction
and certain trade concessions.
He argued that:
nc one would be as greatly bene-
fitted by cancellation as American
agriculture and American labor. A
comparatively small portion of our
population would make up this loss
to the treasury through the pay
ment Of income and inheritance
taxes which would be made produc-
tive by the revival of business"
Summoned to Treasury
Mr.. Eccles said wealthy persons
might be frightened by his plan.
but insisted it was necessary to OBJ
tain an immediate better distribu-
ton of wealth in the United States.
That program brought Mr.. Eccles
to Mr.. Roosevelt's attention and a
year later Mr.. Roosevelt summoned
him to the treasury as special as
sistant. 1t was his first political
job. AS head of the federal re-
serve system, he will urge unification
Of the American banking system,
which now comprises:
l. More than 5000 federal reserve
(private) members banks.
2. Almost 10000 (private) nom
member banks.
3. About 900 (alSo privately owned9
mutual savings banks.
No Setup So Mixed
No other nation possesses so
mixed and numerous a bank setup.
Unifcation means simply that the
federal reserve system would absorb
the nonmember state banks which
now are not responsible to it.
The 1888 bank act put teeth in
the law. The reserve board can
compel removal of unsound bank
officials. There was only the fiction
of real and effective control before
the 1888 act was passed. Therefore,
absorption Of the numerous state
banks and Capitalization Of
authority in the board would be
more than gesture.
II seems reasonable to believe that
is what Mr.. Roosevelt has in mind
it would be the substance, if not
the form, Of a central bank.
Five Ardent New Dealers.
With Mr. Eccles, five of the eight
board members are enthusiastic
New Dealers. There is no reason
to doubt that the board will do as
Mr.. Roosevelt suggests.
Mr.. Eccle's appointment makes
the board definitely, if unofficially.
a part of the New Deal administra-
ton. Legally, the board and any
administrator are distinct although
the secretary of treasury always has
presided as ex-officio board chair
man.
Senator Carter Glass Dem, Va).
who sponsored the federal reserve
act in 1914. tried a year ago to
separate the Federal Reserve sys-
tenn from the government alto
gether by removing the secretary
from board office. Mr.. RooSe-
Welt evidently is moving in the other