The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-02
CENTRAL BANK
FEATURE ASKED
IN REVISED BILL
Control OF Market Deals
Sought by Senate
Committee.

BIZ EHffr9 Prsrr
WASHINGTON. july 2-Ths sen
ate subcommittee report on the ON
nibus banking bill VAS ordered re-
vised TODAY 10 provide for manda-
tory control Of open market opera
tons by a Federal committee.
The fun Senate Banking and Cur
rency Committee directed insertion
~ this feature which. according to
experts. WIll create a virtual central
bank in the Federal Reserve Sys-
TEN. after conference last night.
The action vas taken after some
members decided the report Of the
subcommittee headed BY Senator
Carter Glass ID. Va. did not pro-
vide mandatory control
Approval Is Indicated
The bill. A. the direction Of the
full committee. was made TO pro-
vide that no Reserve bank shall
engage or decline 10 engage" in open
market regulations except in ac-
Cordance with regulations Of an open
market committee 20 consist or
seven members Of the Federal Re
serve Board and five representatives
Of the Reserve bands.
New Deal experts believed such a
provision would give the government
considerable influence IN regulat-
ing the ups and downs Of business
through IFS power 10 dictate the
purchase and sale OF United States
bonds and other securities by means
Of the open market committee.
The bill. 10 was believed. was
otherwise satisfactory to the Ad-
ministration. which has been in
sharp disagreement with Senator
Glass on the Eccles banking bill. Full
committee approval Of the report
was indicated.
Measure Completely Rewritten
The Glass subcommittee. which
reported 10 the fun committee YES
terdav after working on the meas
IRE since January. completely re-
wrote the measure passed by the
House. II dTastiCallv revised the
controversial Title II. designed 70
Centralize control over credit and
money 300 the Federal Reserve Board.
The bill makes wide changes IN
the present bankirg law. II IS OK
pected 10 provoke extended debate
when DO reaches the Senate floor
The subcommittee report restricted
or refused many n the new powers
~
the Federal Reserve Board had
asked for
Most Of the alterations resulted.
it was reported. from Senator Glass
determined opposition % the Dill AS
passed Nav by the House. The
bill was listed as one Of President
ROosevelt's original must meas
ures
Bill Goes to Senate Today
The Banking and Currency Com
mittee was expected 10 place he DILL
before the Senate today. II was re-
ported In almost complete agree
ment on compromise features writ
ten IN By the subcommittee. except
ing the one ordering revision.
Senator Glass. IN commenting on
his subcommittee report. said its a
damn sight better bill than the Origi-
nal" He predicted the Senate would
dispose of the legislation very
quickly II the banking and cur
rency committee approved II by an
overwhelming ma Ority.
Senator Duncan L. Fletcher ID,
Fla. chairman Of the banking COM
mittee. who sought 10 keep Mr.. &c
cles' original proposals intact, indi-
Gated he would support the comprO-
mise. In general. it's quite a rea-
sOnable bill. he said.
Sweeping Reorganization Probable
Passage Of the measure and its
approval by the President would ne
Cessitste a sweeping reorganization
Of the Federal Reserve Board. The
Secretary Of the Treasury and
Controller Of the Currency no
longer would be members. Instead.
there would be seven governors who
would serve 14-year terms. A chair
man and vice chairman would be Sc
ieCted from that group.