Evening Star Newspaper, October 9, 1931, Page 5

BANK LAWS STUDY 1. P. MORGAN SEES BY CONGRESS SEEN | Thorough Consideration to Be Result of Changes Asked i} at Bipartisan Parley. . ___(Continued From First Page) are not taking advantage of facilities! now offered by the Federal Reserve Sys- | tem. In September, he said, member banks held $3,198,000,000 of eligible pa- per, while they were borrowing only $147,000,000. Fights Unmarketable Paper. “Former Senator Aldrich in the most powerful days of his public career,” the Virginia Senator said, “sought in’ vain to include railroad and industrial se- curities as eligible paper for rediscount, but he never could induce Congress to listen to any such dangerous proposi- tion. I am utterly opposed to the in- clusion of non-marketable paper. The first thing you know you will have the Pederal Reserve System frozen up.” It is the intention of the administra- tion to leave this guestion largely up to Congress. However, there is apparent agreement between the administration and Glass, spokesman for the Democrats, on a plan to turn into a revolving fund the | profits from the Federal Reserve System to be used in meeting future bank crises. In other words, this revolving fund would function in similar manner to the $500,000,000 corporation being formed by bankers to aid depositors of elosed banks and to save any threat- ened institutions. Extent of Action Question. There is some doubt as to just how far the administration will go in | recommending that Congress broaden the field of eligible paper. A _report that it would favor having the Federal Reserve system ultimately take over the paper to be liquidated by the pri- vate corporation brought a sharp pro- test from Glass “I have not the remotest idea,” said the Senator, “that Congress would be guilty of the supreme folly of permit- ting the Federal Reserve system to take over the unliquid or frozen assets pro- posed to be acquired by this $500,000,- 000 corporation. What is the use of organizing this so-called national in- stitution if it is to be permitted im- mediately to unload its burdens on the Federal Reserve system? “So far as revising the Federal Re- serve act so as to provide against a Tecurrence of a crisis similar to that which is alleged to exist, that may be done in some degree, but such a pro- vision should not concern itself unduly with attempting to relieve interests which precipitated such emergencies.” | POOL TO ASK CHARTER TODAY. Mortimer N. Buckner Expected to Head | $500,000,000 Corporation. NEW YORK, October 9 (#).—An emergency banking organization to handle frozen assets of interior banks along the linc: proposed by President Hoover in his $500,000,000 bank pool plan was to be incorporated today as the National Credit Corporation. Mortimer N. Buckner, chairman of the New York Trust Co. and president of the New York Clearing House Asso- ciation, in announcing the organization of the new corporation last night, said the charter would be applied for today in Dover, Del. The new credit corporation, with main offices in New York, will be au- thorized to issue up to $1,000.000.000 of debentures and will be capitalized with 12 nominal shares of stock, of $100 par value each, to be voted by a director appointed from each Federal Reserve district. The opinion in Wall Street today was that Mr. Buckner would head the organization. Buckner’s Statement. Buckner’s statement read: plan for organization and co- operation of a National Credit Cor- poration was unanimously adopted this afternoon by the Organization Com- mittee appointed by Gov. George L. Harrison of the Federal Reserve Bank of New York and provides the ma- chinery for administering a fund of $500,000,000 requested by the President of the United States. Mr “The project contemplates the es- | tablishment of a corporation througn the operation of which ° nks through- out the country may, when necessary, procure accommodation upon the basis of sound assets, which are not legally eligible for rediscount at the Federal Reserve banks. This does not mean, however, that banks will have the priv- jlege of applying to the corporation for cash where there is no immediate need “The details of the organization of groups or associations of banks in each district will be under the supervision and control of the director of the Na- tional Credit Corporation from that district “It is contemplated that the National Credit_Corporation will have its main office in the City of New York and its home organization will be compara- tively small, the personnel being of- fered by the local banks.” To Work by Regions. It is understood that business will be done through regional clearing houses or banking associations, either now existing, or to be created in those districts. Banks benefiting by the new corpo- ration are those not eligible to reais- gr)\ t their assets at Federal Reserve anks In the practice of bank borrowing, it is expected that the credit corporaiion will function exactly as the Federal Re- serve System. The Regional Committees on approving a loan for a bank, will forward th: note and the security pledge to the New York office, In this way members of the group as- sume liability for the borrowings ef each other. The whole plan is explained as a banding of the banks into a mutual protection society. Banks are not expected to draw amounts greater than their debenture subscriptigns to the corporaion. There may be special provisions, however, by certain votes of majorities. Debenturcs will not draw more than 6 per cent. ‘The plan outlined by Mr. Buckner was sent to 391 clearing house associ- ations throughout the country, who are expected to join. = o o For a thousand books on Kant, we have scarcely one dealing with what the common people of Kant's day believed and did. ‘Crape Myrtle, S1 Maryland Nursery ___East Hyattsville Glasses Fitted Eses Examined DR. CLAUDE S. SEMONES Eyesight Specialist Phone National 0721 409-410 MecLachlen Bldr., 10th and G Sts. N.W. Graduate McCormick Medlcal CMese 2 FALSE TEETH | Rock, Slide or Slip? Fasteeth, s new, sreatly improved powder to be sprinkled on upper or lower plates, holds false teeth firm and FRENCH BANK HEAD Interest Heightened in Part| | Financier Is Playing in Present Developments. By the Associated Press. NEW YORK, October 9.—-Interest in the part J. P. Morgan is playing in| current international financial de- | velopment was heightened today by the news printed in the Paris newspaper L'Information that he conferred yes- terday with Governor Clement Moret of | the Bank of France. Almost_simultaneously with the con- ference, Charles Farnier, vice governor of the bank, and Robert Lacour-Gayet, director of the bank's economic section, THE -‘EVENING partners in J. P. Morgan & Co., and Willlam C. Potter, president of the Guaranty Trust Co., which is regarded in financial circles as one of the group of “Morgan banks.” A committee appointed by the con- ferees met in New York Monday and recommended acceptance of the plan. Tuesday morning a meeting at which 24 banks were represented was held in New York. Again the Morgan bankers were present and, with others, pledged t?’lemlelvea to carry out the #oover plan, 275 BEER DENAND BY LABOR 1S NEAR |A. F. of L. Committee Is Ex- pected to Report Favorably sailed for the United States to study | President Hoover's financial proposals | before Premier Laval arrives for his conference with the Chief Executive. M. Farnier and M. Lacour-Gayet were in_consultation with Governor Moret before they sailed. During the recent develcpments here and abroad, Mr. Morgan has been in Europe, puffing at his pipe, smiling in his_ usually kindly way at questioners, and meintaining, with one exception, his customary sphynx-like attitude. The limelight is left for others. ‘ Granted Interview. | The banker sailed for Europe during the Summer. For several weeks prior to Great Britain's suspension of the gold standard, he was in his London office, near the Benk of England. The day after the announcement, he broke for the second time in his life his rule never to grant newspaper interviews. He told the Assoclated Press Great Britain's action was “a hcpeful and not s discouraging event.” When Lord Reading, British foreign minister, went from London to Paris to discuss international financial matters with Premier Laval, who will sail soon to confer with President Hoover, Mr. Morgan was on the same train. was described as a coincidence. Yesterday afternoon Lord Reading concluded his conference with the French and said the part America could play in world reconstruction was enor- mous, About the same time Mr. Mor- gan left Paris for London. The Morgan group are among the leading bankers here in close contact with President Hoover as he develops his economic and financial plan, Morgan Bankers at Parley. As the inside story cf how Mr. Hoover formulated his credit program was dis- closed, it was learned that last Sun- day night the President called at the Washington apartment of Secretary of the Treasury ferred with some of the country's leading bankers. Among the conferees were Thomas W. Lamont and George Whitney, two “Lovers Bow” FEnsemble--Both for %100 Just $2 This | Mellon and there con- | on Legalization. By the Associated Press. VANCOUVER, British Columbia, Oc- tober 9.— Organized labor's demand for 2.75 per cent beer crystallized today at the American Federation of Labor Convention and committeemen indi- cated resolutions for outright repeal of the eighteenth amendment probably would be sidetracked. Matthew Woll, chairman of a labor committee working for congressional | | sentiment to change the Volstead act, | STAR explained that 2.75 per cent beer would be the same as Canadian draught brew !Sold here and not the “dishwater” some delegates had thought. President William Green, who also | favors legalization of 275 per cent beer; W. J. McDonough, head of the Building Trades Union, and other leaders indicated most discussion of | resolutions dealing with alcohol would |take place behind closed doors of the Resolutions Committee. However, lead- ers of the “wet wing” girded for a| possible battle on the convention floor shortly. The committee is expected by both wet and dry leaders to report favorably on that section of the executive coun- | cil's report favoring 275 per cent beer. | The committee also is expected to report non-concurrence on Tesolutions adfo- | cating repeal of the eighteenth amend- | ment and repeal of the Volstead act. | “'McDonough said discussion of the Building Trades' Council resolution to compel carpenters, electricians and bricklayers to get into the department | | or stay out of the federation would pe taken up next Tuesday. | The Committee on Resolutions await- | ed a report on the Hoover Dam contract of the Six Companies, Inc.. which was attacked bitterly at hearings. Dslegates characterized the project as a “$700.000,000 outrage,” and referred | to “inhuman working conditions.” They were Joe Reed, Portland, and H. C. | Junemann, Las Vegas, Nev. a Week A love-knot engagement ring and a love- knot wedding band— tillating diamonds to very best girl in the each with seven scin- grace the finger of the world. The price and terms make it easy to start right.with the right rine-~. America's Oldest Credit Jewe'er 1004 F St. Greater Va Fall 2-Pants SUITS Beau Geste Felt Hats $5 Last Year, $6 X | I | | WASHINGTON, D. C FRIDAY WOLL COMMITTEE OF A. F. OF L. SEEKING 2735 BEER RETURN Third Vice President Holds Beverage Within Intent of Eightcenth Amendment. Cites Workers' Need for Refreshment. By the Associated Press. VANCOUVER, British Columbia, Oc- tober 9.—Matthew Woll, third vice president of the American Federation of Labor, who is chairman of a com- mittee seeking the legalization of 2.75 per cent beer, today gave out a state- ment setting forth the committee's reasons. The statement follows: “We feel in the Volstead act the de- termination that one-half of 1 per cent alcohol is intoxicating is carrying re- strictions in manufactured beverages to absurdity. with the intention of the eighteenth amendment. “Experts hold that even 4 per cent beer is non-intoxicating. Canadian draught beer s just what we want in the States. “What higher content is intoxicating is something about which authorities differ. Jaw—within the eighteenth amendment. No one can dispute that 2.75 beor is permissible under the eighteenth amendment. “Some people say: ‘If this beer is per- mitted, what assurance is there that the saloon and speakeasy will not flourish?” ‘That is not the question. If it is admitted that 2.75 beer is non- intoxicating—and experts admit this— then the Volstead act was not justified. “Any law that takes away a right of buliey the people must be interpreted literallythere is little hard liquor.” HICAGO MARKET (O 311 7% Sto.N.W. C. LITTON All U S. Government Inspected Meats Two Markets to Serve You Friday and Saturday Specials Spare Ribs We ask something within the | It does not even comply | Ron | | —that is, 1t must be in direct opposition | have the opportunity of employment, to the right taken away. The Volneld! act is ambiguous. Any legislation that | limits a right of the people must be in- terpreted in the interest of the party from whom the right was taken away. “Otherwise it becomes oppression and contrary to interpretations generally given oh all other legal acts than the Volstead act. If Congress acted legally, the peom: should have the percentage of alcohol they want, provided it is toxicating. “From a physical and social viewpoint we feel that men, particularly those engdged in heavy physical work, need refreshment and mild stimulation. “We all realize that if people are to we must create jobs. Brewing is an industry wanted by many, it would sef many men to work. “We don’t think the eighteenth amend- ment prohibits Congress from using its powers of interpretation, and we are working to crystallize public opinion in the congressional elections. We are not_entering the presidential election. “I don't say that illicit liquor will stop if we have beer, but I do say that when people have a good beverage, it changes their taste; we are becoming a whisky- drinking nation, because beer is too to transport. Where beer is, 3146 M St NW, J. W. CARTER Fresh and Meaty 123 Bacon-Brisketsi Sugar Cured . 12%c Pork Loin Roast . 20¢ STEAKS Quality Steer Beef Round and Sirloin Ib. 220 Pork Sausage Meat . 123c GREEN LINKS w. 15¢ Franks n. 123c LAMB CHOPS FRESH PICNICS Shoulder Cuts . 15¢ w 123c LARD-LARD Package Lard 2 s. 19¢ GROUND i 103 | Fresh Hams ez in. 15¢ Small 10-1b. 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