Evening star., 1935-05-30
Member Of the Associated Press
Wise Counsel.


man who talks common sense. Owen
n Youngs argument against enact
ment of The omnibus bankirg bill.
delivered before he Senate Sanking
Committee Yesterday, was fun of
common sense. he neither DOinted
with pride TO the ba liking structure
as it exists today. nor did he view
with extreme alarm the proposals
IN alter that structure. His chief
recommenda ton as 10 proceed With
caution and on basis of thorough
understanding Of what changes are
necessary, and rot attempt useless
and potentially dangerous rtvisions
that shake confidence.
The proposed sweeping changes in
the Federal Reserve System, as pro-
vided in Section II Of the banking bill.
would be justified, in Mr.. Youngs
opinion. only by some emergency
which does not now exist. For every
thing which can be done by the Fed
eral Reserve system 10 relieve the de-
preston either has been done or is
now being done" As Mr. Young sees
it. the chief benefits anticipated from
changes now proposed would he TO
centralize power and responsibility so
thai We can better control another
boom" There are grave defects and
manifest dangers in the methods pro-
posed for centralizing such power and
responsibility. but the point is that
we have ample time for study before
that power is needed" Another boom
Is not disturbing The country now.
The great problem today is 10 take
,p unemployment. and only business
ran do that" There are vast re-
serves in the banks today. capable
of supporting tremendous expa ansion
in credit. and the banks are anxious
10 lend IL business will borrow The
upward surge of basic economic
demand is ready now to break through
our doubts and fears. and when it
does our credit resources will be put
IN work bv business" But in Mr..
Youngs opinion, and he is The au-
thoritative spokesman for a large
element of business which agrees with
him. while business has been reas-
snred nv the failure of the Patman
bill. business is still apprehensive
about the political domination of our
central banking system. with the re-
xultant threat 10 the commercial
banking system" And here is the
plain fact which cannot be lodged
Whether business should be sp-
prehensive over the bill pending be-
fore YOU or whether il should not.
views will differ. but the fact is that
business is apprehensive The pas
sage of the bill therefore, either
because II is not understood or be-
cause it is. will to some extent retard
business recovery.
Advocates of the banking bill NAV
argue until the cows come home that
there is no real reason for business
apprehension over its enactment. But
that changes nothing. The fact is. as
Mr.. Young SAYS. that business in dur
able goods. where lies most of the un-
employment today. is apprehenSive. In
his opinion the reason for apprehen-
SION Is well founded The pending bill
removes The various checks and bal
snces on the Federal Reserve System.
making its control political. There
should be no removal, argues Mr.
Young Of those checks on the bank of
Issue against taking Government obi-
cations direct and not through the
market" and 1t was the exercise of
his very kind of power which led to
the currency and credit downfall of
Germany and the ultimate destruction
Of the ReichSbank"
Mr.. Young has given sound counsel.
To disregard II is TO hazard further
apprehension and distrust from a large
section Of business which apparently
needs confidence, at this time, more
than anything else