The Washington times., 1935-05-24
COUGHL|N BANK
HEARING ST|RS
HOT FIGHT
Senate Committee to Reject
Plan, But Battle Is Seen
Sure on Floor
BY WILLIAM X. HUTCHINSON
international News Service

international News Service
The decision of the Senate
Banking and Currency Committee
to hear the Rev. Charles E. Cough
lin. Detroit radio priest, on his
plan for a new central Federal
bank, today insured a three
cornered finish fight in the Senate
over banking reform legislation.
Father Coughlin will appear be.
fore the committee next Wednes-
day. He will urge enactment of
his plan to create Bank Of the
United States, with exclusive con-
troll over currency and credit. His
plan would call for popular elec-
ton of 48 governors, one in each
State, to manage the central bank
ing system.
Committee to Reject Plan
His plan, undoubtedly, will be
rejected by the committee, but it
will be presented later to the Sen.
ate by his friends. Senator Nye
(R.) Of North Dakota, already has
introduced it as a separate bill.
The entry of Father Coughlin
into the banking row made it a
three cornered fight. The Admin
iStration previously has sought to
increase the power Of the Federal
Reserve Board over m e m b er
banks. This proposed increase in
power has been resisted by Sena-
tor Carter Glass CD of Virginia,
so-called father of the Federal Re
serve System, and by conservative
Eastern bankers, as a step toward
creating a central Federal bank.
With Father Coughlin welding
an ever-growing political influ-
ence, his entry into the banking
row will add flames to the contro-
versy. His plan would create the
very central bank opponents of
the Administration plan are fight
ing.
1t may be he will force accept
ance of the Administration plan
in the end by the conservatives
as being less Objectionable than
the creation of a Bank of the
United States.
The Administration bill would
give the Federal Reserve Board
almost exclusive power to fix dis
count rates, control open market
operations and the issuance of
currency by member banks. It
literally would create a central
bank with authority to delegate
some of a central banks powers
to member banks. It would be
controlled by a board, appointed
by the President, confirmed by
the Senate and dominated by the
Administration.
The Coughlin plan would create
a central bank with exclusive con.
troll of all banking operations,
exclusive power to issue currency
and exclusive control Of open
market operations. This bank
would be operated by a board Of
48 governors elected by the people
in popular elections and not sub
ject to any domination by the
Administration.
Bankers Are Opposed
Bankers naturally will fight the
Coughlin plan with greater ferocity
than the Administration bill. Un-
der the latter, they will retain con-
siderable authority over the ope-
Grafton of Federal Reserve banks
in the IL districts and over their
own member banks. Under the
Coughlin bill, bankers would have
to operate their institutions &C
cording to DEGREES of the central
board.
The visit of Father Coughlin
may have lasting political effect.
For one thing, it will inject his
banking views into the next cam
paign by laying the groundwork
for a direct vote in the Senate. He
will meet defeat in the end, but
he will have a major issue for
the next election.