Show CLES REPLIES REPLIES' r 10 GLASS NOTE V f I r t Li Responsibility for fo Interest Inter Inter- ay ys s R es p pC i. i est eat Order Lies With F D Die I C CWASHINGTON Dec 27 Re W WASHINGTON ability W lute to fo for the recent order re re- 7 maximum i ibn interest St on deposits m d the federal reser reserve e b outside disclaimed today by b Y Gov Gov- n WU eras Jf bf the fedr fed fed- f r S. S Eccles board b oar d iral tn reserve formal ormal statement inter inter- a R He e Issued to th the re recent tr an answer EY Senator Glass GUS D. D Va c of ici ci th rates time on cutting order der t he theor tt insured noni non non- deposits in Dinks from 3 to 2 2 peran per i et t. t an illegal act at that th the a rese reserve ve board boardo aid said the o such juch power p Eccles l l' l Deposit Insurance corpo corpora corpora- a r n yd d taken ta en the t he action acU n. n not th the lIe He did not the ques quest c i t j r the F DIC s authority to act Glass Class denied 1 i Jurisdiction Sech Sach Jurisdiction as the govern govern- Mot exercises over the nonmember rests with the Federal Deposit U Trance rance corporation corpora on he said ald On On 4 ber 15 the federal reserve advised that the board of b ird w was In- In j directors l of the Federal Deposit had reduced the rut r ta ce corporation J time deposit rate for or ini in in- firmed i nonmember banks bank and trust companies to 2 k per cent Governor Go Eccles added that a misUnderstanding mis Understanding appeared to have arisen insen because the reserve reserve board in its order making a similar d n in deposit rates in member br ib referred to the action oft of the e teP sit insurance corporation Both ili actions he said were taken not jointly i The iThe e boards board's statement he con- con continued continued carried this reference because because be be- cause there was abundant reason for believing that both member banks and ind nd their depositors would be vitally concerned by the rates of at interest w which ich might b be paid by competing nonmember banks Under UDder AdHe Act Ad He said the reserve boards board's order reducing rates jn in member banks was taken in accordance with provisions of the banking act of ot 1933 and he heri ri added tHat both the reserve reserve board and jUhe fth the deposit insurance corporation had made similar moves in the past x r la Ia 11 Lynchburg Va Senator Glass commented lie He evidently has not read my mylet- mylet let Iet letto Uto to Mr Charles S. S Hamlin mem- mem bero the federal reserve board to whop he made his criticism or i if he her P. P r b ms nu unable to understand ILe Il it 5 e Another Aa orb oth r stunt stunt- development o in the banki bank bank- 3 J i tal al situation to today ay was was the publication by f the Was Washington Post of a report that thal J J. T T. F F. OConnor O'Connor comptroller of cf the currency had refused an offer t tp become agent and chairman of at the ilian San Francisco federal reserve bank |