Salt Lake Telegram | 1935-07-27 | Page 18 | Bank Act Goes to Conference

BANK ACT GOES i TO CONFERENCE j WASHINGTON July 27 V- V After sweeping through the senate i In a form Corm hailed aUed as asa a major triumph for Senator Senat r Glass D. D Va u thi the r omnibus banking bill headed today r J for tor a senate house senat house conference to There some administration forces are expected to make a last Jast stand stani stand to recover some of at the ground th they lost Jost when a Glass subcommittee re reworked r reworked worked the bill One aim of oi I some font i administration men is to strengthen centralized federal reserve board control of oC open market operations Without making malting any changes the thi senate passed the bill yesterday with an emphatic chorus of a ayes u Its supporters were so solidly united unit unit- united ed cd that there was Va not even a void vote o Previously the senate hat had bad swamped 59 to 10 a propos proposal l foia for foi fora for fora a owned government central bank band the idea offered by Senator HyeR Ny Hye R. R N. N D. D with the tho support ol ot of Father Charles E. E Coughlin Deg De Detroit troit radio priest This amendment would have substituted the centra bank for tor the tho credit control section of the bill I This credit control feature constitutes conj con a principal difference b It bt tween the bill passed in in May I b by bythe the house and that approved yeste yeater day in the senate Both measures In Increase I crease Washington's control over the thc nations nation's finances but the tho house ho bill blU goes farther It would give the thi reserve board the sole control over the purchase and sale of securities by the 12 reserve banks after consulting coo con suiting an advisory ad committee commUtes Ot ol of reserve bankers 1 The senate compromise provide for or a of seven members of the reserve board and five ri re regional rH gional bank representatives These TheM five would have a voice In framing policies Administration leaden leade were saying that this banker rep would be reduced d by one oni OMIn in conference A motion favored by President Roosevelt was defeated yesterdaY 39 to 22 This would have taken from Crom the measure the provision to tc to permit commercial banks to return to the business of ot underwriting se et securities t under strict limitations Tin The be president held to the view that this would open pen the door to speculation Senator LaFollette frog Will Wis made the motion arguing on the side of the president r Senator Glass Glass' said aid there Yoe were weri adequate sae safeguards I f Administration leaders privately private I expressed the opinion the under undu- underwriting writing clause would be In conference The senate measure gives the r H servo serve board greater powers powers' thin than now in the fixing of ot rediscount rata ratH tM ind and the determination of resen which must be carried by members member It t makes permanent the deposit In Insurance lad law which guarantees guarantee deposits de de' deposits posits up to to the full amount amoun t and carries other provisions i i