New-York tribune., 1913-10-15
OWEN CHARGES GREED
IN FIGHT Of BANKERS
Senator Defends Currency Bill
Before Conference of ACad-
emy of Political Science.
RESERVE CLAUSE TROUBLE
Says Immediate Loss of Profits
Is the Real Cause of Op-
position-Heckled by
Financiers.

Senator Robert 1, Owen. who, with Rep
resentative Carter Glass, drew the Glass
owen currency bill, defended the measure
before the first session Of the second ma
| tional conference Of the Academy of Po-
| litical Science in the hall OF the Chamber
Of Commerce yesterday. He said opposi-
tion to the bill came from those VINO
wanted a more radical currency REFORM
and that If legislation was postponed until
another panic hit the country the radicals
would have their way.
The bankers present, many OF whom
| had Just come from the American Bank
| ers' Association convention at Boston.
heckled Senator owen. He was appiauded
only once. and that was when. in reply to
question by John Harsen Rhoades. he
said that members of the federal reserve
/ board ought to be men of the same calibre
as justices Of the Supreme Court.
'The real opposition TO the bill" Senator
/ owen said "is by reason of It's most vital
requirement-that in the future funds on
deposit In other national banks cannot be
counted as legal reserve. This means an
immediate loss of profits TO many bankers
1 say immediate, for in the long run the
change will benefit the bankers as well as
the public, and It is the prospect Of that
| loss that explains most OF the organized
opposition TO the bill"
Senator Owen, in a reply TO a question
put by Benjamin F. Harris, president OF
the Illinois Bankers Association. said the
system could not be permitted to fall by
making optional the joining of the reserve
association. He said he hadn't the slight
est doubt that the banks would join
readily
This prediction was challenged at the
afternoon session by Arthur Reynolds,
president Of the American Bankers Asso-
ciation. He said to his own knowledge
about six hundred country banks would
decline because of the unsatisfactory pro-
visions Of the bill
Senator owen said the greatest advan-
tage Of the bill was that member banks
would be able to withdraw from the New
York Stock Exchange and other stock eX-
changes large volume of credit and
time loans. and thus be enabled to use
the funds for commerce and industry.
"The fight" he said, "is to drive us
| from our firm resolution to break down
the artificial connection between the bank
| ing business and the stock speculative
operations at the monetary centres. The
| banking and currency committee has gone
TO the very root of this gigantic evil and
| intends to cut the cancer out
Representative Glass was unable to be
present but his paper was read as part
Of the record. Robert J. Bulkley, Of Ohio.
member Of the House Committee on Bank
| ing and Currency, caused a stir by charg-
ing that the recent report Of the American
Bankers Association was written In bad
temper"
! He said the association should have eX-
ercised some care in charging that bill
which had been publicly indorsed by Pres
| ident Wilson and passed by the House Of
Representatives was Unconstitutional
and sought TO confscate private prop
erty"
In the afternoon "A. Barton Hepburn.
chairman Of the Chase National Bank,
said he was not especially fearful OF po-
litical control" under the bill as he was OF
incompetent control" but as long as the
bill was born in n caucus and Graded In
political generalit'es" he believed business
men and bankers would be pardoned II
they had some misgivings about possible
political control.
The bill was defended at the afternoon
session by II. Parker Willis. Of THE
Journal of Commerce and Commercial
Bulletin" and by Professor o. NJ w.
Srrague of Harvard University.
Professor Z. w. Kemmerer. OF Princeton
University. presided over the discussion
Another session will be held to-day In
Earl Hall, Columbia University.