Evening star., 1947-07-08
Banking Bills Move
Ahead in Congress-,
ABA Review Shows
by Edword G. Stone

Progress is reported on many
banking bills now before Congress,
some being favored and others op-
posed by bank officials. A summary
of the status of these bills has just
been forwarded by D. j.. Needham,
general counsel of the American
Bankers Association. to State secre-
taries. The review also lists several
new bills recently introduced.
The Tobey bill which gives the
Federal Reserve Board control over
bank holding companies, is pending
on the Senate calendar, with amend
ments added by the Senate Banking
Committee. All holding companies
would have to register with the
board, be subject to board examina-
ton, have the boards approval for
new holding companies, and be
regulated In their transactions with
subsidiary banks.
Loans With Banks Allowed.
Extension of the Reconstruction
Finance Corp, now law, permits
the RFC to participate with banks
in loans to business enterprises. The
bill does not permit the RFC to pro-
vide a secondary market for Gil
home loans.
House Resolution 1918 containing
social security amendments has
passed the House and been referred
to the Senate Finance Committee.
Senate Bill 1880 extends indef1-
nitely insurance of modernizatlon
and repair loans under Title l OF the
National House Act and has become
law.
H. r. 27es. 27es and 2soo have
been passed by the House and re-
ferred to the Senate Banking Com
mittee. The first bill permits con-
version of Federal savings and loan
associations into savings and loan
type institutions chartered under
state law; the second provides 1ol
repayment to the Treasury OF capital
in the Federal Home Loan Banks
and the Federal Savings and Loan
Corp; the third would permit Fed
eral savings and loan associations
tn make unsecured modernization
and repair loans.
Mortgage Bill Pending.
House Resolution 3448, which
makes 25-year mortgages eligible as
collateral for advances by Federal
Home Loan Banks to their members
nassed nv the House, Is before the
senate Banking Committee.
The bill to terminate Federal Re-
serve Board control Of consumer
credit under Regulation w Is pend
ing on the House calendar. The
ABA has just declared this wartime
measure to be obsolete
Senate Bill $50, extending the LIE
of the Commodity Credit Corp. for
one year, has been signed by the
President. The original bill called
for a two-year extension.
The six minimum hourly wage
bills, favoring various increases from
IS cents an hour to IS, introduced IN
June, are being closely followed by
leaders in finance. The permanent
housing bill. opposed by the ABA, Is
also drawing wide attention.
Outlook Declared Bright.
There is no general recession ir
American business today and mos
businessmen do not look for a seri'
Gus one at any time soon, partners
of Merrill Lynch. Pierce. Fenner d
Beane reported today after 500 IN
terviews in 81 States and the Dis
trict of Columbia.
Many businessmen look for mild
recession, while others use the term
readjustment.
The only widely pessimistlc view
was held about the construction in
dustry. The feeling was over
whelming that both materials ano
labor in this field are priced out OF
all reason.
Edward r. stetinius, jr.. former
Secretary of State, has been ap-
pointed a Glass c director OF the
Federal Reserve Bank of Richmond
to fill an unexpired term which enos
December 81. 1949.
The annual outing OF District OF
Columbia Control, Controllers In
stitute cf America, will be held TO-
morrow and Thursday at the Farm
ineton Country Club. Charlottesville
Va. with golf, tennis and the annual
dinner as leading attractions.