Evening star., 1935-04-22
ECC[ES APPROVED
F0RRESERvEPOST
Glass Subcommittee Votes
to 0. K. Nomination
for Governor.

b. the Associated Press.
The Glass Banking Subcommittee
today voted to make a favorable re-
port on the nomination Of Mariner
s. Eccles Of Utah as governor Of the
Federal Reserve Board without further
inquiry into his qualifications.
The vote was not announced! Chair
man Glass said a proposal was made
that the subcommittee look into COM
plants filed against Eccles by some
unnamed persons, but this was not
agreed to.
Senator Couzens, Republican, Of
Michigan, had announced previously
he would seek an investigation OF these
complaints.
II opposed 1t because thought 1t
would be futile" Glass said.
Hearings Resumed.
Following the executive session, the
subcommittee resumed open hearings
on the omnibus banking bill with Leo
T. Crowley. chairman Of the Federal
Deposit Insurance Corporation, on the
stand.
Eccles was examined for two hours
by the subcommittee last week. but
the unpublished complaints were not
brought up Couzens said prior to
today'S meeting that on the record TO
date. he feels Eccles Is eligible for
confirmation to his post. But he con-
tended that II the Utahan was to be
turned down, it should be on the basis
of evidence in the record and not a
whispering campaign"
The nature OF the complaints has
never been disclosed by Glass. nor
has their authorship been made pub
lie They were understood, however.
to involve Eccles' business activities
before entering the Government.
Glass has been reluctant to contest
the nomination on this evidence. pre-
ferring to conduct the matter on an
lmpersonal basis.
Eccles told the subcommittee last
week he sold all his bank stock to
qualify for his first Treasury post
Assistant Secretary. He said he lost
$50 900 on the sale, and that the stock
was sold to the Eccles Investment
Corp, which administers the estate
of the nominees late father for his
mother and eight brothers and sisters.
He said he still had a small stock
ownership in the Eccles Investment
Corp. but he read an opinion from
the Reserve Boards counsel holding
that he had qualified for the govern
orship.
Eccles offered to resign as an Off
Ger of the Eccles Investment Corp.
if the subcommittee thought there was
any improperly in holding the post.
Glass brought out at the first hear
ing that several of the Eccles banks
had sold preferred stock to the Re-
construction Finance Corporation.
Bank Bill Amended.
Meanwhile, a move described on
Capitol Hill as designed to keep bank
ers from obtaining control over Fed
eral bank deposit insurance was dis
closed. An amendment with that pur-
pose was written into the omnibus
banking bill by the House Banking
Committee and remained unheralded
until a committeeman told about it
today.
First, 1t stipulates that the con-
troller Of the currency-who is on the
Board of Directors Of the Federal De-
posit Insurance Corp-not only must
sever all his banking connections. but
shall be ineligible for two years after
he leaves Office to make any connec-
ton with bank which has deposit
insurance
There was a stiff row ahead for the
bill, even in the House. Republican
members of the Banking Committee
contended 1t represented one Of the
steps essential for dictatorship.