Evening Star Newspaper, October 14, 1931, Page 35

FEDERAL RESERVE 10 BE UNCHANGED Treasury and Administration Oppose Absorption of Frozen Assets. I the Federal Reserve act is ever broadened it will not include the redis- | counting of slow or frozen -assets. This | explanation was made yesterday to off- set a misconception of the President’s plan to mobilize the credit resources of the country. Letters exchanged between Senator Glass of Virginia, ranking Democrat on the Banking and Currency Committee, and Senator Robinson, Democratic leader, are concurred in ab- solutely by officials of the Treasury and by_the administration generally. The plan of the bankers' pool, now known as the National Credit Corpora- tlon, to rediscount certain notes backed up by local banks and clearing house committees, has nothing whatsoever to do with the proposal made by the Pres- ident to recommend to Congress a study of the eligibility requirements of the Federal Reserve act on the redis- eounting of credit obligations. D. C, WibNiisSDAY, Boy, 11, Kills Self With Rifle Given Him on Birthday By the Associated Press. OAKLAND, Calif,, October 14. —After treating his playmates to candy bars and ice cream, John F. McLeod, jr, 11, shot and killed himself here Monday with & rifle his father had given him as a birthday present. The reason for his act was unknown to his parents. He left a terse note, in which he said, “Good-by, everybody.” AUTOIST AND WIFE SUED $30,000 Asked by Three Injured in Collision Last May. - John 8. Prichard and his wife, Ruth, 310 Varnum street, are named as de- fendants in three suits totaling $30,000 |damages filed yesterday in the District | Supreme Court as the result of a col- lision of their car with another auto- mobile driven by Wilhelmina Rose, near Bladensburg road and the Colesville Pike in nearby Maryland May 23 last. ‘The plaintiffs are Annabelle Rogers, 1325 Belmont street; Audrey Hottel, 2148 O street, and Agnes Sheetz, Shore- ham Building. All claimed to have been injured and each asks $10,000 damages. Set Up by Private Banks. ‘The bankers’ pool is a private agency They are represented by Attorney Samuel Boyd. set up the banks themselves to use their | collective credit to care for emergency situations, to prevent bank runs and by | their overwhelming strength, maintain public confidence. But even bankers' pool is not going to rediscount really frozen or worthless assets and will insist on sound paper. backed by the notes of borrowing banks them- selves as well as by the local clearing house committees. If any clearing up of slow assets and | any other aid is needed for real estate | securities and railroad bonds, it will come through the means of a tempo- rary organization patterned after the ‘War Finance Corporation, with a capi- tal grnnwd by Congress and with the right to issue long-term bonds to ma- ture after the frozen assets is accomplished But nobody in the Government has ever dreamed of making either the cred- | its made under the proposed War Fi- | nance Corporation or the credits grant- ed by the National Credit Corporation eligible, for rediscounting at the Fed- | eral Reserve banks. Confusion Is Explained. ‘The confusion probably the fact all the different pro: given out simultaneously in com- prehensive plan for national re 7 tion when the President conferred last week with leaders of both parties in Congress. The controversy over eligibility for re- discount at the Federal Reserve has been going on for 18 years or more and there are different schools of thought. Senator Glass of Virginia, author of the Federal Reserve law. has been mak- ing a special study of the subject and there is little doubt that President Hoo- ver will be found agreeing with Mr. Glass's. recommendations. Indeed, big New York bankers have informally irdicated they think there should be no tampering with the eligi- bility requirements, because of the pos- sibility of abuse in normal times. and that the present emergency measures should be treated as something separate and distinct from the Federal reserve machinery. Legislation to Be Delayed. ‘When the depression is over there probably will be some legislation based on experience, but if any attempt were to be made in the December session to alter the eligibility requirements in any radical manner, the debate would ex- tend throughout the session and the chances of action would be remote. The cry of inflation would be raised and the same old political issues arising therefrom would come into the picture to delay legislation. So. while there some day may be a broadening of eligibility requirements, it will be only after almost unanimous eement has been obtained. Mean- while, it is an unfortunate confusing of the plans of the bankers’ pool and the proposed Government Finance Corpora- tion and discussion of eligibility re- quirements of the Federal Reserve which ‘undoubtedly has given rise to the belief in some quarters, including Europe, that an inflation is planned through the un- loading on the Federal Reserve system of frozen assets. ‘The banking credit of the Nation is considered ample to take care of slow and frozen assets, irrespective of the Federal Reserve machinery. This is what is happening at the moment, with every sign that the measures already announced are having a wholesome ef- fect in restoring confidence in the abil- ity of the country to weather any crisis without even touching the sound. per- manent structure reared under the Federal Reserve act. D. L. (Copyright, 1931) A = Corn fed into a new maching in- | vented by an Italian is ground into flour, mixed with other ingredients, and baked into loaves in 20 minutes, claims the inventor. the | liquidation of such | from | s were | | MORE PLEASURE LESS e EXPENSE by MOTOR COACH Just that! Be thrifty and at the same time enjoy all the plus- walues of scenic highway travel. Phone today for information. SAMPLE LOW FARES: Baltimore (Round Trip) ... S1.25 LOW ONE WAY FARES: Buffalo s Philadelphia’ Detroit Fredericksburg hmond . Tnion Bus Depot. Met. 1512, Blue NW. 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