Salt Lake Telegram | 1932-04-16 | Page 1 | Senate Body Okehs Glass Banking Bill

SENATE SENA TE BODY GLASS BANKING BILL Measure Designed to Curb Use of Federal Facilities in Speculation By Br Associated Pre Press WASHINGTON April 16 The 16 The senate senate senate sen sen- ate banking committee today approved approved ap ap- proved banking reform bill The measure directed at curbing the use of federal facilities facilities' for sP speculation C lation received almost unanimous approval approval ap pro al in its modified tl form A contest arose over over the provision to allow national banks to have branch banks regardless of state prohibitory prohibitory pro pro- prohibitory laws against branch bank bank- ing This provision was retained in inthe inthe the legislation n. n although some members members members mem mem- bers reserved the right to oppose it iton iton iton on the floor loor The bill sponsored by Senator Gla Glass s Dem Virginia was modified to meet some suggestions of the federal reserve board and in its present form formis is expected to receive Republican support The legislation represents almost eighteen months of oC work by the banking banking bank bank- ing committee in an effort to modernize modern modernize ize the thc national banking act and to tighten tighten up the federal reserve and national national national na na- na- na banking systems for the protection tion of the public The federal reserve board would be put in command of checking speculation specula specula- tion through federal facilities The bill says Whenever in the judgment judgment judg judg- ment of the federal reserve board any member bank is making undue l use e of bank credit the board may in its discretion after reasonable notice and an opportunity for a hearing suspend suspend sus sus- pend such banks from the use of credit facilities of the federal reserve system and may terminate such suspension suspension suspension sus sus- pension or may renew it from time timeto to time The legislation also would create a federal liquidating corporation to speed payments to depositors in closed banks