Evening star., 1935-04-17
CONGRESS TREND
HELD GOOD OMEN
Victories for Champions OF
Less Restrictive Legis-
Iation Seen.
BY DAVID LAWRENCE.

From the standpoint of those who
believe that a minimum of restrictive
legislation just at this time would
cause business confidence to grow and
recovery TO be accelerated, certain
events in the last 10 days each hap
pening separately. mean when added
together that the present Congress may
prove in the end to be neither as
defiationary nor as inf1ationary as was
anticipated a few weeks ago. Here
they are:
First, the decision of leaders In Con-
eress to meet the problem of small in
vestors in utility holding companies by
modifying the original proposal is
step in the direction of recovering
losses in market values that had al
ready set in.
Second, the sentiment developed in
the House and Senate against increas-
ing the A. A. A. powers is being hailed
by the food industry with its $2O,00O.-
600 900 volume as removal of menac-
ing situation.
Third. the vote in the Senate which
caused Senator Copeland to drop for
this session his effort to bring about
regulation of the food and drug indus
tries and their advertising has been
taken to mean that a bill to correct
abuses and not to embarrass the in
dustry will be adopted whenever con-
sideration of this subject is renewed,
probably next January.
Ranking Bill Change.
Fourth, of importance to the whole
banking world is the Willingness OF
President Roosevelt. expressed to SEN
stor Glass of Virginia, to allow the
pending bank reform bill to be sep
arateo so that the provisions relat-
ing to bank examination and insur-
ance of bank deposits and other ad-
ninistrative matters can be passed
while the sections involving funda-
mental changes in the operation OF
the Federal Reserve System ana the
handling of reserves will presumably
be postponed till next January. BY
that time it is expected that sub
stantial progress will have been mace
toward reconciling conflicting views
on a sound piece of legislation IN keep
ing with the needs Of the times. yet
not disturbing to the banking struc-
ture.
Collateral developments not directly
related to business are also approach
ing a more favorable viewpoint; that
is. favorable in relation to the CIV
ing of mature consideration and time
to matters like the Wagner labor re-
lations bill and the bill enlarging the
powers of the N. r. A.
Mr.. Roosevelt's conferences with
congressional leaders indicate that he
would like to see Congress get through
with social security legislation and
with a utility holding company bill
and with a measure to extend the
N. r. A. and a modified banking bill.
AS for the other measures. the op-
position is such that prolonged de-
bate may be expected and the whole
legislative program held up.
Slower Tempo Better.
Whether or not the uncertainties
enveloping business nowadays have
been portrayed vividly to the Presl-
dent and are somehow influential in
his talks with the Democratic leaders,
the fact remains that the present Con-
gress has had enough legislation be-
fore it for a dozen sessions. A slower
tempo is likely to produce a better
business psychology, especially since
the administration cannot but have
been impressed with the upward trend
of income tax revenues and the posi-
bility that more activity will result If
a few of the pending measures are left
to be threshed out in another session,
by which time more opportunity for
the presentation of the viewpoint OF
those affected will have been given.
The reform legislation is by no
means being abandoned by the ad-
ministration, but it does look as if the
leaders are listening to the argument
that no particular reason exists for
rushing into all sorts of unWorkable
regulatory mechanisms. The admin
istration also is we'll aware that the
continued presence here Of Congress
while the $4,000, 100000 fund Is being
spent is not going to mean as scien-
tific plan of disbursement as it
would like to carry on. In other
words, the possibility of restriction by
joint resolution exists as a potential
danger to the executive operation of
the fund every day that Congress
stays here. The trend is toward ad-
journment in eight weeks, probably
by June IS.
tcopyright 1880