Show Banker Sees Business Hope in fn Glass Al L I c 4 W By ALLARD SMITH I Executive Vice Ice President the Union Trust Company Cleveland O. O Slowly but surely events event arc are moving moving ing bIg toward correction of many of the basc basic troubles that have been affecting affect affect- i ing lag finance and trade The most recent recent recent re re- re- re cent and perhaps the most important of all al developments development in this direction is the Glass Glas bill for broadening broaden ing mg the facilities of the federal reserve system Under the present banking regulations regula tons only certain kinds of commercial commercial commer commer- cial cal paper held by member banks of the federal reserve system may be pledged by these banks bans in getting gelling advances advances ad ad- vances from the thc system collateral collateral col col- lateral is called caled eligible paper The Glass Glas bill remedies this situation over the prevailing pre aing emer emer- gency It I makes it possible for mem mem- member member ber banks under certain restrictions to borrow money from irom the federal reserve system by pledging banking baking assets asset other than eligible commercial commercial comer comer- commer commer- cial paper Thus it is Js estimated that of sound but frozen bankIng bankIng banking bank bank- Ing ases assets will wi be made liquid Such a result resul will wI be bea a remedy for foi forthe forthe the root of much of the banking troubles troubles troubles trou trou- bles of past pat months months The Te c effect et of 01 this measure added to that of the Reconstruction Re Re- ReI Re construction Finance corporation wll wIl wi I to be to t remove fears of banking failures fall fail fai ures and cause hoarded money to tc I flow fow back to the banks baks Present developments development are arc rapidly r establishing a basis of confidence which will vilI wi mean a return of gooc good business |