New-York tribune., 1913-07-31
Amendment Proposed Giving
Them Right to Cooperate
with Reserve Board.
PLAN TO CHECK PL0TTERS
Senate Resolution Would With
draw Charte from Bcnks in
Conspiracy to Depress
Govern ent BOND
From The Tribune Bureaul

Washington. July 3O-An advisory board
Of bankers to make suggestions TO the
federal reserve board created by the
administration currency bill probably
will he provided for when that measure Is
reported TO the House Chairman Glass
Of the House Banking and Currency Com
mittee acknowledged to-day that he was
i'm favor of such a board. which. he sug-
gested. should consist Of twelve members
named by the twelve regional banking as
sociatons.
II is not contemplated that the bankers
advisory board shall have vote in mat
ters determined by the federal reserve
board. The bankers would be merely en-
titled to offer suggestions on all questions
relating TO emergency currency issues, re-
discounts. reserves and other powers dele
gated to the government board. The ad-
vising bankers. according TO present
plans would serve without salary.
Members Of the House Banking and
Currency Committee, who feel strongly
that the government should assume all
money issuing powers, have not been
sounded regarding the new proposal,
which Chairman Glass has accepted teuta-
lively.
To authorize the Secretary of the Treas
ury to withdraw all privileges of the
! Treasury and even charters from any ma
tional banks which band together TO de-
press government bonds resolution was
introduced to-day by Senator Lewis, Of
Illinois, II was based on the recent
public statement by Secretary McAdoo
that New York banks were depressing 2
per cent oOnds 10 influence currency leg
islation.
The Democrats Of the Banking and cur
rency Committee held no conference to-
day on the currency bill The majority
conference will be continued tomorrow,
and a call is out for party caucus on
August Il. when the bill will be submit
ted to the House Democrats whether it
has been completed in committee or not
Mr. Glass hopes" to-day 10 complete the
bill before the end OF the week
The Stock Exchange police commit
tee. which is investigating the short sale
Of $500 government ? per cent coupon
bonds on the exchange last Saturday by
Il. A. Manice & Co. at 95i2 summoned
the head of that firm to appear yesterday
and explain whether the transaction was
made for the purpose OF breaking the
market or whether it was for a customer
contemplating actual delivery.
II was stated by a representative OF
the committee that no decision had been
reached and that IT may be week be
fore any is made public. In view OF the
charge of Secretary McAdoo that Ne"
York banks are depressing the govern
ment bond market TO influence currency
LEGISLATION. considerable criticism was
heard Of the apparent disposition on the
part of the exchange authorities 10 hush
the matter up at this time II was sug-
gested that il would be far better 10 in
form the public regarding the ethics OF
the sale when the government charges are
still fresh.
In behalf Of the exchange officials,
however. it was said that the investiga-
ton. TO he thorough, would take time.
The purchaser of the bonds was the Ma
tlonal City Bank. and since the bank has
not yet secured delivery, the period al
lotted for this purpose being twenty days,
II has no information regarding the seller.
There was a steadier tone TO the gov
ernment bond market yesterday. and the
buying was heavier than Ead taken place
since the introduction of the new cur
rency bill. OF the 2 per cents. which are
the subject of so much DISCUSSION among
the banks which hold them as security
for circulation privilege $1,000 were sold
TO Harvey Fisk & Sons for the account
of banks. The prices at which these
bonds were taken ranged from 9J'4 TO 96.
or practically the same az prevailed on
Tuesday. when sl35,OCO OF the bonds
changed hands.