The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-02-22


that the Roosevelt administration has
returned from its ex-
Home Affairs cursion into foreign
to the Fore ports and is now
ready to engage in
rehabilitation of domestic affairs to the
exclusion of international problems, ex-
cept the matter of reciprocal treaties.
1t is true that Secretary Hull of the
Department of State, Secretary Roper
of the Department of Commerce, and
Senator Borah, in the senate, have
talked about foreign affairs in one way
or another, but none of them occa-
stoned any observation or suggestions
from the White House by their asser-
tons.
Among the occurrences in the re-
cent period that tend to show how the
administration again is putting home
affairs to the forefront are the new
banking bill, the plans for recovery
revival under the five billion dollar
public works bill, and the determine
ton of house and senate lately, under
a White House spur, to clip the wings
of, If not wholly eradicate, the sO-called
holding companies. Attention might be
called also to the uprising in the De-
partment of Agriculture where Secre-
tary Wallace, and Agricultural Adjust
ment Administrator Chester Davis COM
bined few days ago to eliminate left
wing members of their respective stats.
They did it summarily, but the end Is
not yet, either as respects plans of
Messrs Wallace and Davis, or the yelps
that may be expected from the rad
icals who were ousted.
The general information is that, in
shelving foreign matters, Mr.. Roose-
welt has determined to lay aside the st.
Lawrence waterway controversy until
pressing domestic matters" are dis
posed of. Almost in the same breath
1t can be said that new activity has
been disclosed on the part of the New
Dealers to spread their doctrine into
the states and establish, If possible,
uniform laws everywhere concerning
privately owned utilities such as cleo
tricity and gas. While no one will say
so, it is the understanding that consid-
cradle pressure is being placed behind
the effort to get state legislatures to
pass uniform public utilities bills, meas
ures which have been drafted in the
Public Works administration here.
Probably as important as any legis-
lation that has gone to congress In re-
cent months is the
NeU Banking new banking bill. 1t
Bill was transmitted to
congress in a most
unspectacular manner. There was no
out-and-out endorsement by the White
House, nor was the sponsoring of the
draft made clear. The legislation was
dropped into the house hopper the day
after Representative Steagall, chair
man of the house committee on bank
ing and currency, had given out his own
standardization. Chairman Fletcher Of
the senate committee on banking and
currency received the bill the same
day as Mr.. Steagall and Immediately
went into huddle with himself behind
closed doors to study the draft. Later
he announced with apparent pleasure
that it was a great piece of legislation
Now that the bill has been printed
and is available for public inspection,
q perfect furore has been aroused. The
conservative critics began to squawk
Immediately that the measure proposes
to destroy the Federal Reserve system
and concentrate on power of credit
and currency expansion or contraction.
In the hands of a small group in the
Treasury they contend that this
amounts to establishment of central
bank and that, under our political sys-
tenn, a central bank would mean an I'M
stable currency What more could there
be then, they ask, to destroy confidence
In the currency which we use?
New Dealers, in defense of this new
banking legislation, have been given to
making wise-cracks about the Old Deal
ers, who, they assert, desire to see con-
ditions of 1928 and 1929 repeated. They
cite, with some justification it seems to
me, that central banks exist in most
of the major countries of the world
and that their service has not been a
bad thing at all. Further, the New
Dealers argue that the political capital
of the United States is in Washington,
and the financial capital has been in
New York. Why, they ask, should there
be such a division?
In between these two schools of
thought are sound money advocates
and courageous conservatives who take
the position that the bill has many
good qualities and that it likewise has
many provisions definitely to be avoid
ed. You have heard very little express
sion of opinion from this type because,
it is apparent, they are giving the
measure close study. They will be
heard from later when the legislation
is taken up by the respective commit
tees of the house and senate and it
is made to appear that some changes
surely will result.
To summarize the banking legisla-
tion-and / think it is of paramount
interest to every one
Centralized becaese it touches the
Control currency and credit
so directly-the real
end likely to result from the legislation
is centralized control in Washington
of the very nerve center of business,
money. The bill proposes to establish
what is called an open market commit
tee in Washington and to include as
members of this committee three MEM
bers Of the Federal Reserve board.
The two remaining members would
come from Federal Reserve banks.
From this it is seen that the Reserve
board becomes the dominant body. It
70 M ct,.ofnh cf tho tor. "a,