GOVERNMENT IN BANKING

Press, Volume LXX, Issue 21117, 19 March 1934, Page 11

GOVERNMENT IN BANKING

-- ♦ - Extension of Credit Facilities AMERICAN PLAN ! FINANCE ( ORPORATION j Ml.I. liS'iH' i .;p- ■'■ •>—'" '\i'• -v .i i: r- !.••:•: ■ir.i.K..i.;ini -,"niii.t!i;j I Keceived March 13. a.ii p.m. > WASHINGTON. March U>. ; The Reconstruction Finance Cor- : poration will seek legislation to j grant it power to perform complete J banking functions. President Roose- \ velt has for long held that the pri- I vate banks are not adequately meet- j ing the demand by business for I credit, and he is prepared to put the j Government agency directly in ; competition with them by allowing \ it to grant loans to industry and ! individuals.

A later message stales that the ; ReeonstriH'tien Corporation Finance Rill, which has been sent, to Congress, will put the Government into the banking business on an unpre- , cedented scale. Leans will be n ,'c j to concerns employing a minimum , of H) persons which will have ' maturities not exceeding live years and which will be contingent on the increased employment of labour. Concerns can build up reserves before repaying their indebtedness, and the measure is , otherwise designed to "meet every j legitimate credit requirement of large and small industrial and com- ! mercial concerns." I Later in the 1 day a rather anomalous situation developed when it ] was revealed that the Federal Rescrve Hoard strongly opposed the. measure, and that it had forwarded , to Congress a im-asin'c el its own j which provides for an industrial m- : lei mediate credit bank in each Federal reserve district, with a total of ,'UIO.OOO. Duo dollars provided by congressional appropriation. The banks v. ould be empowered to make loans, either direct to industry orthrough commercial bank.-, for live years. Cnl H's of the coi poration plan pointed out that whereas the corporation was an integral part of the Governnn'iit under the new system, the bank.-- would be supervised by the semi-mdependent and "bank- j minded" Federal .liso-vr Board. A ' mysterious touch was given to the whole matter when Pi,esident ivoose V e!t informed pies- cone pendents that he knew nothing about the pl'opo : ed iIK'IIHIIT, It Is felt heie th;.t. a qi.a'Tel is brewing between tlie corporation and the Reserve Board and that Mr Henry Merger.' baa i : ui'pi'ft in.',' tb.e latter. AIR MAIL CONTRACTS iindberui denoi nces plan or admimsika i ion < Received March Ik. 7.-10 p.m. i WASHINGTON. March 17. Colonel Lindbergh, testifying befoi'c t!i" Senate committee, denounced the Administration's bill . for the return fi mail contracts to private operators. The bill pro- ; vides that no ni'v: I'ontraets should go to companies with claims against the Government because of contract cancellat lorn . "It is one of the mo-.| nniu. t acts 1 have even in American legislation." said Colonel Lindbergh, "'t lie army is not so \u-il equipped as com- ! mercal companies, and army pilots ; linvr bi'en sent into the air without I proper trai'ii'ig, although American ' military aviation leads thai v-f other ; count ries." ANOTHER PILOT KILLED A I \T\I. TI-.ST 111 (. If 1 <Received March 10. t'.a p.m.) MAY YORK, Mar. ii 17. Lviu a- the announcement was made in Washington that the army air corps was to resume the emergency carriage ol air mails on a limited scale from Monday word was received at Cheyenne that Lieutenant Richardson was killed in a test Might in preparation for the resumption of the service. Further interest i-- added to tbran- mail situation Ry the testimony before the Senale Committee bv Captain R ickenbacki-i\ a noted war ace, who called on President Roose\ent '"to puree the oflicial family of traitorous elements." and who advised him th't the- cancellation of the air mail Contracts was "contrary to American principles of .iuslice." Senator McKellar rebuked the witness, diivGmg him ''not to attack the President or make a political speech." NEtJKO STUDENTS IN RIOT

IM'IMI-iNT IN W \SII!N<.TON WASHINGTON. Match 17. A Hvri' or mure negro students li'oiii Howard I'Diversity, an institution supported by local bodies, noted a! the Capitol and clashed with 11k- police lu-ciay when they were prevented I rum entering the House ol' Representatives restaurant "to test the legality" of the unwritten rule hairing negroes from receiving service. The incident grew out of a conflict which lias arisen between the representative De Priest, the only negro in the House, and southern representatives who ordered the restaurant manager to refuse service to negroes, although they had lm some time been admitted.

A HUGE INCOME j < lIICACO MAN I'AYo HEAVY TAX | i i (Received March 10, 7.-15 p.m.) CHICAGO, March 17. Despite the depression, one Chicago man had an income of between four and live million dollars in l<i;;:k He will make an income taxpayment of 1,593,000 dollars, the largest recorded for this area since 1020, and the largest of any individual or corporation to file returns this year. INSULL ARRESTED j 10l ND ABOARD ( ARf.O BOAT ATHENS, March hi. Samuel Instill was arrested aboard the cirgo boat Meotis, which was overhauled by a torpedo-boat. i Samuel Insiiil lias been wanted by the United States police since October lii:cj. to answer charge/ of larceny and • -mbc.'/lcmrnt connected with the collapse of the great Instill Public Utilities combine, which is estimated to have involved investors in a loss of £•100,000.000. He was ordered to leave Greece by last Thursday, but when the police M-arched his house they found he had disappeared. I PERMITTED TO LEAVE NOT DETAINED IN ATHENS (Received March 10. u.o p.m.) ATHENS. March 17. The Mentis has arrived, and it has been announced that, after complying with the formalities, Insull will be permitted to leave as soon as possible for Djibouti, on his way to Abyssinia. Mrs Insull hurried to the Ministry of the Interior and begged the Minister to send a message to her husband, saying he would riot be handed over to the American authorities. The Minister agreed, adding that Insull could have an escort of police during his stay in port. However, the American Legation, although informed of the arrival of the Meotis, took no action, and a later message states that the Miotis sailed with Insull aboard. INSILI/S BROTHER EXTRADITION ORDER IN CANADA t Received March IS, G p.m.' l TORONTO. March Id. The Chief Justice has confirmed the extradition order against Martin Insull. who is wanted in Chicago on similar charges to those facing his brother Samuel. Martin Insull has lost a 17 months' battle, in which he fought bis extradition to the High Court. He is now being held for the United States authorities. KSCAPKI) CONVICT SHOT PORT HURON 1 Michigan). March Hi. The negro. 11 rherl Younghlood. who escaped with John Dillinger. was shot and killed by a police patrol after a desperate battle m which throe policemen were seriously injured. Before he died Youngblnou said he had seen Dillinger on the previous night. This lias caused officers to intensify the search in this vicinity.

l.bhn Ddlmscr. one of America's most notorious bank robbers and murderers, walked out of the supposedly escape-proof Lake County gaol with Ycninqblood. a convicted murderer, on March 3. He cowed Iris guards with a small piece of wood carved to resemble a pistol and stained with boot tracking. I