Evening star., 1935-02-05
BANKING MEASURE
PREPARED AFTER
ROOSEVELT TALKS
President Fails to IndorSe
Widening Reserve Power,
However.
ECCLES DENIES SENDING
CONGRESS LEGISLATION
Executive Urges Committees Of
Both Houses to Call Three
Framers of Bill.
BY the Associated Press.

oS bAAC ASoOSidbcO EICoos
The new Treasury drafted bill in
creasing the powers of the Federal
Reserve Board over the Nations
banking system was disclosed today
to have been prepared after confer
ences with President Roosevelt. but a
memorandum sent to the Capitol by
the executive refrained from giving
his personal Endorsement to it.
Meanwhile, Senator Glass, Demo-
crat, of Virginia, specialist in bank
ing legislation, said Mariner S. Ec-
cles, governor Of the Federal Reserve
Board, had told him he did not send
the bill to Capitol Hill and did not
know it was being sent.
Earlier Glass had contended Eccles
broke pledge that he would be shown
the legislation before any one else. A
fight lay ahead Of the banking pro.
posals.
Suggests Quiz Of Trio.
President Roosevelts memorandum
suggested that the Banking Commit
tees of both houses call for examina-
ton the three officials who drafted
the comprehensive measure-Eccles,
Leo T. Cromley. chairman Of the Fed
eral Deposit Insurance Corporation.
and J. F. T. O'Connor, controller Of
the currency.
Il have had a number of confer
ences regarding three banking mat
ters," said the memorandum to Chair
men Fletcher and Steagall Of the Sen
ate and House Banking Committees.
respectively, which are to some extent
interrelated and which affect the Fed
eral Deposit Insurance Corporation,
the Federal Reserve System and the
Office of the controller of the currency.
II have discussed these matters
with Leo T Crowley. chairman of the
Federal Deposit Insurance Corp:
Mariner S. EccleS. governor Of the
Federal Reserve Board, and J. F. T.
O'Connor, controller of the currency.
II have asked the representatives
OF the various departments and agen-
cies affected to give consideration to
the matter discussed.
Tentative Draft Prepared.
For the information Of your COM
mittee they have prepared tentative
draft of legislation.
81 am asking the gentlemen named
to give the benefits of the results Of
their discussions to you as chairmen
of the Banking and Currency Com
mittee and I shall be glad to have
you call them before your committee
for further information If you desire.
Senator Fletcher withheld comment
on the bill. but indicated it would be
subjected to close study. He said he
might introduce the measure Ito get
1t up for discussion"
In the opinion of trained observers,
the proposed legislation would give
the Reserve Board many of the pow
ers of a central bank.
In his earlier statement. Glass said:
THE governor of the Federal Re-
serve Board, Mr.. Eccles, voluntarily
came to my Office and told me that he
would show me the amendments be-
fore he showed them to any one else.
He did not keep his word"
Later EccleS said speedy relay Of
the bill to the Capitol was responsible
for the misunderstanding between
Glass and himself.
The completed draft, Eccles said.
was in the hands of congressional
leaders before he himself had re-
ceived copy.
Issues Formal Statement.
In a formal statement. Eccles said:
l. that aa1laA Can
ator Glass a few weeks ago and
reference was made by me to the
Forthcoming Federal Reserve banking
legislation. I told the Senator that
I did not feel I was in a position
at that time to discuss the matter
with him because it was being ham
died through the administration
committee, as was all other legiSla-
ton of the Government lending agen-
cies, and I did not know what final
form the legislative recommendation
was likely to take.
'I did promise him as soon as the
matter was cleared with the admin
istration to show him the bill and to
discuss the matter with him before
personally discussing it with any one
else.
However. the Federal Reserve leg
islation is only one of the three Sec
tions of the administrations 1885
banking bill, and it was only early
yesterday-at 1870 p.m.-that the Fed
eraI Reserve section of the bill was
finally completed and approved. i'm
portant changes having been made as
late as yesterday noon.
"The bill was delivered at the Capt.
tol before I personally had copy.
called Senator Glass last evening and
explained the situation to him and
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