New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-04
SAYS CURRENCY BILL
WILL Be A FAILURE
Banker Tells Senate Committee
Measure in Present Form
Is Unsatisfactory.
CALLS IT A "FORCE" ACT
House Committee Defeats Re-
publican Effort to Have New
Hearings on the Subject
To Report Monday.
From The Tribune Bureau


Washington, Sept. 9-The failure Of the
administration currency bill, if 1t is enact
ed in the form in which It was approved
by the Democratic caucus Of the House,
was predicted before the Senate Banking
and Currency Committee to-day by Fes-
tus ]. Wade. of st. Louis. a member of
the bankers committee appointed by the
recent Chicago conference.
Mr. Wade declared that the measure
was force" bill and did not meet with
the appreciation of national bankers tie
cited figures to show that If approx
mately one-tenth of the national banks
refused 10 subscribe for the stock Of the
proposed federal reserve banks and sur
rendered their charters the Middle West
and Pacific Coast would be without a fed
eral reserve bank at all and the Eastern
and Southern states would have an mad
eQuate number.
''It is a force measure" said Mr.. Wade
and as such it is repulsive TO us. II is
not Democratic There ought to be
enough wisdom in the committees OF the
two houses TO draft a bill which Will not
force us 10 come in, but Will obhge us 10
ask TO be allowed TO come in voluntarily
Mr.. Wade. on behalf Of the bankers
committee, suggested that the puoIlc IN
general be allowed TO subscribe Tor the
stock Of the reserve banks, and that a
system be devised by which the sta'e
banks and trust companies be allowed u
go in. Without these, he said, a homo
1eneous system could not be established
as the national banks merely dealt WIN
one phase of the banking situatioH INC
commerce of the country.
AS a solution of the problem Mr.. Wade
suggested that the bankers who subscribe
TO the stock Of federal reserve DaiiAs pe
allowed 10 suggest a list Of forty or hfty
names from which the President might
make his selection.
T Nj. Johnston, president OF the
National Reserve Bank of Kansas CITY,
who appeared at the request OF senator
Owen. chairman Of the Banking and Cur
rency Committee. expressed general APP
nroval Of the bill as drafted. He said
that the spirit of The Republic was toward
decentralization and away from central
ization. and suggested that there should
be seven regional reserve banks
sol Wexler. of New Orleans. discus
sing national paper currency, SAID the
bankers believed the notes should be is
sued by the Federal Reserve Board TO the
banks and by them TO the public, and that
all the federal reserve banks should be
responsible for the whole issue of notes.
49,. IF ne n
try should be in one big reservoir" said
Mr. Wexler, where they are readily ac-
cessible, rather than scattered in 10000 or
more little piles wnere they can be OF
little benefit to the country in general
Samuel Untermyer, OF New York. coun-
sci for the money trust investigating
committee, was present at the Senate
hearing to-day at the request of Chair
man owen He probably will present an
answer to the bankers.
While the bankers criticised the bill
before the Senate Currency Committee
Republican members of the House com
mittee made an Intellectual effort TO have
new hearings opened up there. The adj
ministration forces on the committee de-
feated the scheme by vote of 10 against
g. Then the committee adopted reso-
luton offered by Representative Wingo
declaring that the views of the American
Bankers Association were fully known.
and that the amendments proposed by
the bankers conference had been re
peatedly suggested 10 the proponents Of
the BILL and every one Of them seriously
discussed and carefully considered by
those responsible TO the country for this
legislation"
This action will result in the conclusion
Of consideration Of the bill late to-mor-
row and the reporting of the measure to
the House next Monday by Chairman
Glass.