The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-03-20
CHANGE BILL
IS MODIFIED
Administration Moves for
Financial Aid for Small
Businesses
By c. c. NICOLET
United Press Staff Correspondent

WASHINGTON, March ~. -
(UP).-The administration made
overtures of friendship toward in
dustry yesterday, pressing for
quick action on direct loans to
finance small businesses and Of
fering a substitute stock market
regulation bill modified in several
respects from the original Fetch
er-Rayburn measure.
The notifications in the stock
market bill, however, were far
less liberal than stock exchange
witnesses before congressional
committees had proposed, and
many conservatives were expect
ed to continue their opposition ia
the measure.
President Roosevelt, in a letter
to the chairmen of the house and
senate banking committees, threw
his support directly behind the
plan to create II intermediate
credit banks to lend money tc
industries for maintenance, re-
Mobilization and, in some cases
expansion. Mr.. Roosevelt said
that a survey of 1858 banks and
1866 chambers of commerce, con,
Quoted by the federal reserve
board indicated that $4,000 per-
sons would retain present employ
ment and 37S,000 more could be
given jobs if $700,000,000 in
working capital could be lent tC
small and medium sized compan'
les.
eve have afforded much aid
in the recovery of agriculture
commerce, our larger industries
and our financial institutions, y
the president wrote, land our i'm
proved condition nationally fur,
nishes full justification for these
efforts. We must continue in be.
half of the medium size man in
industry and commerce"
He asked early consideration OF
the plan, Gas l feel that the sit
uation disclosed calls for imme-
diate relief"
The status of the small bust
ness man under the recovery pro-
gram, which has been the subject
of conflicting opinion, will come
up in another aspect today when
the federal trade commission de-
livers to the senate a 260 page
report, asked by Senator Borah,
R., Idaho, on the effect of the
steel code on, alleged monopoly
practices. Borah believes that
codes in general tend to create
monopolies and squeeze out the
"little fellow"
The new stock market bill was
introduced in the house by Rep
resentative Samuel Rayburn, D.,
Tex, and was understood to be
the draft prepared in collabora-
ton with federal reserve and
treasury officials.
The greatest victory won by
conservatives under its terms is
the transfer of proposed control
over margin requirements and
other credit restrictions from the
federal trade commission to the
federal reserve board. Margin re-
strictions are " made less severe
and banks are exempted in part
from limitations on the amount
they can loan on a security.
Regulation of the dissemination
of propaganda in behalf of Sc
curities also is made less extreme.
The bill in its new form is be-
lieved to have much greater
chance of passage relatively I'M
than did the old measure
to which opposition was strong
even in some parts of the admin
itself.
In anothre phase of the admin
general financial pro
gram, the senate passed the bill
guaranteeing principal of Home
Owners Loan corporation bonds.
But an amendment was adopted
all HOLC appointments
to be made on a basis of merit
and efficiency rather than parti-
san political considerations. Sen
ator Norris, R., Nebr., said ne
was informed that serious scan
dals impended unless his action
we're taken. $50,
The house passed the Dies bill
for exchange of agricultural sur
oluses for silver abroad at a pre-
MUM, giving the silver bloc in
;ense qualification because they
achieved a majority of eleven,
about two-thirds of the house.
But the administration refrained
rom making an issue of the bill:
20 the vote was not a forecast OF
What would happen to more dras-
lie silver legislation. The strength
If the silver bloc is gaining rap
dly on both sides Of the capitol,
however.
The house also passed the Phil
ppines independence bill, and the
senate opened debate on it.