(2 of 2)
"There is not a safeguard in the R. F. C. act that was not written into it by a Democrat or a Progressive Republican after the bill came from the Treasury Department. . . . The very fact that not one dollar of the corporation's debentures has been offered to private investors but every dollar of them unloaded on the Federal Treasury is a clear portent of the burden the taxpayers will be compelled to endure. President Hoover has converted the Treasury into a national pawnshop and infected the central government with the fatal germ of financial socialism."
As for the Glass-Steagall bill passed at the President's request to "broaden the base of Federal Reserve credit," its Senate sponsor hotly pointed out that only 39 "limping" banks out of 7,600 have been "insignificantly" aided by this feature of the law.
Senator Glass hotly denied the President's Des Moines statement that the country was within two weeks of going off the gold standard. Recalling that the Treasury sold nearly $4,000,000,000 worth of short-term Federal obligations payable in gold during the first half of 1932, the Senator declared: "If the President and the Secretary of the Treasury had knowledge that this country was faced with imminent disaster by being 'driven off the gold standard in two weeks' and failed to so advise the banks and private investors who purchased these Federal securities, they were guilty of amazing dishonesty: they were cheating the investing public." Relief? The Democrats forced the Administration to act by bringing forth the Wagner bill. Economy? Congress cut $334,000,000 from the President's own estimates over the loud protests of his Cabinet. Budget? It is still unbalanced despite the President's "breathless rush to the Capitol to get publicity." Bonus? It was specifically voted down at the Democratic national convention. The Garner "loans-to-all" bill? President Hoover wanted to authorize R. F. C. loans to private industries and named an automobile corporation whose head contributed $25,000 to his campaign fund as a likely recipient.
Secretary of the Treasury Mills, No. 1 Hoover stumpster. procured an advance press copy of the Glass speech, engaged radio time immediately following to make a partisan retort. Hearing of this Senator Glass concluded his speech by declaring that Secretary Mills had obtained his copy "by some means which involves a breach of confidence disdained by every honorable newspaper man," and adding:
"If he prefers the backstairs method of controversy he is at liberty to make that choice. I prefer to keep my rapier clean and play the game as gentlemen in their code of ethics require."
Secretary Mills, fagged by a long campaign, insisted that there was nothing unethical in the manner of his reply, the gist of which was: "It is so easy to be wise after the event."