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July 9, Board of SwRiori ItiHn&i on H a. 7186 » r» loloaon. Assistant Counsel ftirsuant to the request of Mr» %afct, X attended oar in, a this aomlng by Mai iianklag and Ourranoy Coaraittee of the House on the b i l l H#H. 71M| which would ©rtead for tire yoar« after August 23, 1937, the authority of sasmber banks and oth«?r Insure-i banks to pay Interest oa deaaad deposits of public £&n&u and trust funds In cases where the paymfisit of i* r«qulmd by £tat® law* only witness who t#atifi«4 wai Mr» Clare Boss, froasuror of the state of Pennsylvania, who t«atlfi«d la favor of tl^ b i l l . It ma el«ar from hit toatimosy that # wliil® h> toatifle.: for a two y^ar extension, > o ^ really faTor^d • paraaaeat #x^mptlocs In faet, quostlosing froa nws^rs of the Cojasittee brought oat that UN Host mm no objeetlon to the payment of Interest on e.ny deaaad deposits* It appeared tbfct the f'^enzxeylTaiila leglelature r^oaaitly aiaeaded the Stat© laws with the intention of relaxing the requirement of Interest on State funds wherever that rsqulretfexit Might confliot with Federal r®striotions* However, Mr* Boss stated that there was a question whether this SflMBdment was not Ueo)mieally insufficient to aahlev* i t s purpose* He based a goed deal of his argiaaant for the passage of K*l« 7186 on this pceslbillty of a teohnioal defeet in the amendment to the State law* The questions of o©rfcaia of the Canalttee ineabere, particularly Ghainaan Gteagall (Ala#) aixd Hon^ressnen BBBIMB (!I«C.)# seea«<i to be sorns* what unfavorable to the b i l l , although Mr# Baaoook ^ntioaad the possibility that he aight propose an aaen^snt t© the b i l l to extend the exemption for one year instead of two* The questions of C©jjgr«sssaan ,'ord (Calif,) and Patoan (Taau) were apparently a»re favorable to the bill* After Mr* Ross had ooneludedf Chairman Sbeagall stated Informally that Chalraan Socles had asked to be heard on the b i l l to destroy old Federal R> *» serve notes bearing the gold redenptieo feature $ and i t was agreed that Cheiraen iooles would be he&rd oa Heteesdayt July 14, i f agreeable to h It was indieated that after hearlag Cfeainaan Eoel«s the Cetoslttee probably would go late Executive Session to dispose of the interest oa deposits b i l l and the federal '.'Reserve not© bill* The Cesadttee then adjourned until 1^30 A. . , Tuesdayf July 13* Respectfully, Frerlorie , Aeelstant Counsel*
