72D CONGRESS 1st Session } SENATE { REPORT AMENDING ACT RELATING TO DEGREE-CONFERRING INSTITUTIONS IN THE DISTRICT OF COLUMBIA FEBRUARY 5 (calendar day, FEBRUARY 12), 1932.-Ordered to be printed Mr. CAPPER, from the Committee on the District of Columbia, submitted the following REPORT [To accompany S. 100] The Committee on the District of Columbia, to whom was referred the bill (S. 100) to amend section 586c of the act entitled "An act to amend subchapter 1 of chapter 18 of the Code of Laws for the District of Columbia relating to degree-conferring institutions," approved March 2, 1929, having considered the same, reports favorably thereon, and recommends that the bill do pass. PURPOSE OF THE BILL The purpose of the bill is to exempt reputable institutions of learning in foreign lands from a restriction of the District law regulating degree-conferring institutions. This law was enacted to correct the "diploma mill" evil in the District, after investigation showed many so-called "universities" were issuing to correspondence students degrees in medicine, dentistry, and other studies. To safeguard the public from any misapprehension as to the supposed connection of a private educational institution with the Government, the law carried a prohibition against the use of the words "American, " "United States," "Federal" and the like, in the title of any institution of learning incorporated in the District of Columbia. Under the law, the Board of Education of the District was author District laws. Lacking this license, such an institution would be barred by law from conferring degrees. AMERICAN UNIVERSITIES ABROAD So far as the committee can determine, there was no intent to forbid the use of the word "American" in the titles of institutions of learning in foreign lands where the word served solely to indicate place of origin, such as the American Academy at Rome, the American School of Classical Studies at Athens, the American University at Beirut, and other well-known schools and colleges abroad. The committee knows of only one instance of such an institution that would fall under the provisions of the District law. This is the American University at Cairo, Egypt. It is a place of learning of high standards, and its qualifications have been completely investigated by the board of education. It is, so far as the committee knows, the only important American university abroad incorporated under the laws of the District and therefore subject to the restrictions of the "diploma mill" law. Under the law, this university would be compelled to reincorporate in the District under another title, because of its use of the word "American," or to incorporate in another State under the same title. CONTENTS OF THE BILL The bill, in every respect identical to one passed by the Senate in the Seventy-first Congress, would permit an amendment of the law to provide that no institution heretofore incorporated under the act, and carrying on its work exclusively in a foreign country with the approval of the government thereof, shall, if complying in all other respects with the law, be denied a license because of the inclusion in its title, as descriptive of its origin, of any of the words forbidden by the act. The bill was studied by the commissioners and the Board of Education. Their approval is expressed in the letter appended hereto as part of this report. The committee feels that the bill will not weaken the force and effect of the act it is intended to amend, and will prevent an injustice to existing educational institutions of known merit and high standing. COMMISSIONERS OF THE DISTRICT OF COLUMBIA, Hon. ARTHUR CAPPER, United States Senate, Washington, D. C. SIR: The Commissioners of the District of Columbia have the honor to submit the following on Senate bill 100, Seventy-second Congress, first session, entitled "A bill to amend section 586c of the act entitled 'An act to amend subchapter 1 of chapter 18 of the Code of Laws for the District of Columbia relating to degreeconferring institutions,' approved March 2, 1929," which you referred to them for report as to the merits of the bill and the propriety of its passage. Neither the Commissioners of the District of Columbia nor the Board of Education have any objection to the passage of the proposed bill, and the commissioners therefore recommend favorable action thereon. FEBRUARY 5 (calendar day, February 12), 1932.—Ordered to be printed Mr. GLASS, from the Committee on Banking and Currency, submitted the following REPORT [To accompany S. 3616] The Committee on Banking and Currency, to which was referred the bill (S. 3616) to improve the facilities of the Federal reserve system for the service of commerce, industry and agriculture, to provide means for meeting the needs of member banks in exceptional circumstances, and for other purposes, having considered the same, report favorably thereon with the recommendation that the bill do pass, with the following amendments: Page 2, line 4, after the comma, strike out "the" and insert the following: "provided such banks have no adequate amount of eligible and acceptable assets to obtain sufficient accommodation through rediscounting at the Federal reserve bank. The". Page 2, line 5, strike out "to" where it first appears, and insert in lieu thereof "must". Page 3, strike out lines 5 to 8, inclusive, and insert in lieu thereof the following: "Member banks are authorized to obligate themselves in accordance with the provisions of this section." Page 3, line 15, after the word "bank" insert a comma and the following: "having a capital of $500,000 or less,". Page 3, line 21, strike out "holding office at the time". STATEMENT The bill is not intended nor should it be used for undue inflation of the currency. One important temporary provision, covering a period of 12 months after approval of the act, authorizes, for that time, the Federal Reserve Board, should it deem such action to be in the public interest, to use the direct obligations of the United States as a basis for currency issues, against which there must be a gold reserve of 40 per cent. This will enable the Federal reserve banks to maintain a desirable volume of what is known as "free gold," which means gold in excess of the 40 per cent statutory requirement and not including "ear-marked" gold. This would fortify the gold status of the Federal reserve banks in this period of extraordinary disturbance. It is suggested, and is altogether probable, that the Federal reserve banks may not find it necessary to make use of this authorization. Another provision of the bill taken textually from what is known as the "Glass bill," now in process of consideration by the Senate Banking and Currency Committee, with a modification of the specific rate of interest which may be charged organized groups of banks desiring rediscount facilities on other than eligible paper and securities, is intended to provide a permanent reserve for groups of banks in periods of great distress. The discount rate is left to the determination of the Federal Reserve Board; but in no event shall it be less than 1 per cent higher than the prevailing rate of discount at the Federal reserve bank of any district using this facility. There must be joint action by not less than five banks in any one group, and the great probability is that there will be a great many more should circumstances ever require the use of this facility. These banks must first have exhausted their eligible assets before getting access to Federal reserve banks on securities not ordinarily eligible. A third provision of the bill authorizes, for a period of one year from approval of the act, any single member bank in exigent circumstances to get accommodation at a Federal reserve bank on satisfactory security not now permitted by existing law; but it may do this only after it has used all of its available eligible commercial assets and United States securities and is in immediate need of help which it may not otherwise obtain to avert failure. The two provisions relating to unusual rediscount operations are so carefully safeguarded, the committee thinks, as to make it improbable that there can be any unwholesome inflation of the currency unless we may assume that the Federal reserve banks, with the approval of the Federal Reserve Board, will be unwise and improvident enough so to administer the law as to bring about dangerous expansion. This would be difficult under the terms of the bill. It should be very definitely understood, as it is explicitly agreed by the proponents of this measure, that the bill is not intended to displace the so-called Glass bill now before the Senate Banking and Currency Committee for consideration. O 72D CONGRESS 1st Session } SENATE { REPORT No. 244 WAR-TIME COMMISSIONED RANK TO RETIRED WARRANT OFFICERS AND ENLISTED MEN FEBRUARY 5 (calendar day, FEBRUARY 15), 1932.-Ordered to be printed Mr. REED, from the Committee on Military Affairs, submitted the following REPORT [To accompany S. 460] The Committee on Military Affairs, to which was referred the bill (S. 460) to give war-time commissioned rank to retired enlisted men, having considered the same, report favorably thereon with the recommendation that it do pass, amended as follows: Strike out all after the enacting clause and insert in lieu thereof the following: That all warrant officers and enlisted men who served in the Army, Navy, Marine Corps, or Coast Guard of the United States during the World War or the Spanish-American War, and whose service during such war was creditable, and who have been or hereafter may be retired according to law, shall on the date of approval of this act or upon retirement in the case of those now on the active lists of the services named herein, be advanced in rank on the retired list to the highest commissioned, warrant or enlisted grade held by them during such war: Provided, That nothing in this act shall entitle any of the personnel described herein, while on active duty, to any other rank than that in which they were serving at the time of retirement: And provided further, That no increase in active or retired pay or allowances shall result from the passage of this act. This amendment is made upon the recommendation of the Secretary of War. The purpose of the bill is to give enlisted men of the Army, Navy, Marine Corps, or Coast Guard who served creditably during the World War or Spanish-American War, and who have been or may in the future be retired according to law, a rank on the retired list of the highest grade held by them during such war. The report of the Secretary of War to the chairman of the Senate Committee on Military Affairs, recommending the amendment and |