Evening star., 1935-02-18
CONGRESS DELAY
HELD BENEFICIAL
Sign of NormaIcy Seen in
Desire of Lawmakers
to Deliberate.
BY DAVID LAWRENCE.

BY DAVID LAWRENCE.
Things are getting down to normal.
Congress is taking its time again.
The newspaper men have had gentle
rebuke from the President for being
bit too inquisitive. Somebody in the
Senate wants a cabinet officer re-
moved. And our legislators are talk
ing of out-spending the President.
All these happenings, taken to-
gether, more or less illustrate that
official behavior is about the same
whether millions or billions are at
stake, that political bombardment of
the administration in power goes on
apace whether the Democrats or the
Republicans are in Office, and that
even a good-natured President, like
Mr.. Roosevelt, who wants his confer
ences with the press to be the acme
Of frankness and candor, discovers
sooner or later that maybe his prede-
cessors had a reason for keeping their
counsels bit to themselves.
DCldy W SduSC
The delay in Congress will produce,
as it always has, irritation But it's
a choice between ill-considered legis-
1ation passed under the whip of emer-
gency ballyhoo or more temperate
and calm deliberation, with perhaps
just a few months or even year
more Of study of legislation that is
supposed to reorganize vital units Of
our economic structure.
Thus the holding companies in the
utility field have had the sentence Of
death pronounced upon them to take
place in 1888 or thereabouts. A few
weeks more or less of hearings might
possibly give innocent investors, who
stand to lose their life savings. a
chance to argue against a ruthless
policy Of conflscation and in favor of
some plan whereby the abuses can be
cut out through sensible policy of
regulation.
Investigation Likely.
Also, the far-reaching nature of the
banking legislation, which is to set up
an entirely new banking system by
abolishing the present Federal Reserve
system, is likely to cause the legis-
lators to appoint national commits
sion to go into these matters more
penetratingly than can be done in a
few weeks.
1t will be recalled that q national
monetary commission spent nearly
two years studying banking conditions
before changes in our national bank
ing system were recommended, and
that Senator Carter Glass, father Of
the Federal Reserve system. worked
for at least two years steadily on the
first Federal Reserve act and then
nurtured it carefully for nearly two
decades as strengthening amendments
based on experience were offered
Also, there are banking authorities of
unquestioned integrity who actually
contend that maybe the remedy is
going to be worse than the cure. They
want a chance to be heard. All this
may sound like delay, but it's con-
structive delay, If the term may be
permitted. 1t will mean better and
sounder legislation in the end.
Public Wants Deliberation.
The moment Congress tends to be-
come a deliberative body again it is
accused Of purposeful procrastinatior.
but the fact is public opinion is now
back of the demand that Congress
watch its step before turning upside
down important industries and the
entire credit system.
Unfortunately, of course, many peo-
pie are being guided by their preju-
dices rather than their reasoning
powers. Persons, for instance, who
lost money in closed banks have no
further confidence in private banking
and want it all taken over by the
Government. They forget, of course,
that if the total number of dollars on
deposit before 1929 is consideed, then
more than 95 per cent of the money
has been unimpaired. Also, it will be
recalled that the President paid
tribute to the sound banking of those
institutions which were reopened after
the bank holiday. And when the final
figures on liquidation Of closed banks
are written 1t will be found that 662a
per cent of the money on deposit in
those institutions will have been re-
covered. This doesn't mean that the
loss will be only one-third in every
bank, but it will be true on an aver
age. Many a stock and bond, and
many security issued by municipal
government, managed by the politi-
clans. had depreciation of more than
one third.
Bank Safeguards Favored.
&f III L. -
man or woman who lost money, but
members of Congress are being i'm
portuned to consider whether polit-
ical control Of banking may not lead
to even worse conditions than 1t has
been sought to alleviate.
Certainly the fact that there are
business failures every day can hardly
be taken as a good reason for closing
up the successful businesses or putting
them under Government management
The way to diminish railroad wrecks,
1t was learned long ago, was not to
dismiss all the engineers but to put
better safety signals and devices into
effect.
Congress has before it the choice
OF carrying reform to the extreme
point of complete reorganization, with
new and doubtful schemes of man
agement, or of returning to an Oh
jective view of what tested experience
has found is worth while to retain in
the economic system, but cutting out
effectively all the fraud and misrepre-
sentation and abuses which honest
enforcement and existing laws will
tend to eradicate. Certainly it's too
big a Job for a single session of Con-
gress.
Copyright. 1e35)
WEALTHY MAN EINnS som