New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-04
M'ADOO REPLIES TO
CURRENCY BILL FOES
Gives Figures to Dispute Crit
Cism of RediscOunt Pro-
visions of Measure.
SHORT TERM PAPER VOLUME
SO Large, Secretary Declares,
as to Make Facilities Offered
by Bill of "Incalcu-
liable Benefit"

Washington, oct. Answering criti-
cism of the currency bill TO the effect
that the volume of short term commercial
paper held by the national banks was so
small as TO render the rediscOunt proVi-
sions OF the measure OF little value, Sec
rotary McAdoo announced tonight that
on August 9 last the national banks held
S},42s,065157 Of paper maturing In ninety
days or less.
The volume of short-term paper con-
stantiy held by the banks of the country
said Secretary McAdoo, "is so great
as 10 make the facilities offered by the
Glass bill Of incalcuable benefit 10 the
business interests OF the country
In order to secure accurate informa-
ton on the subject the Secretary ex-
piained, the Controller in the August 3
call required all national banks TO report
the amount of paper maturing IN Ninety
days or less, and that with a maturity OF
more than ninety days. The secreuE
statement continues:
"A few of the banks failed to CLASSIFY
the maturites. but the omission anected
only about 2ia per cent OF the TOTAL Inc
reports 20 the Controller show that the
national banks OF the country held on
August .. 1918. s6,o22, 4C6597 OF loans and
discounts. OF this sum there was to'si
of Ss.I2s, o5S l57 maturing In ninety Gays
or less and n total of S2,59ASl,4O matur-
ing in more than ninety days. In short
IS per cent Of the paper held by the ma
tionsl banks showed maturity In ninety
days or less. and AZ per cent In more than
ninety days.
Holdings in Reserve Cities.
",rbs central reserve city banks held in
round numbers s,S75, 10000 OF paper. of
which s75s.Ooo,0oo showed Rnaturity OF
n,n.tv DAYS or less and s6l6.bo,0O ma
turity OF more than ninety days.
Reserve cities, other than central re-
s.rye cities, held a total Of H,S7S'cpop OF
paper. OF which sss3, 10000 showed ma
turity Of ninety days or less and sets'-
600 oo a maturity of more than ninety
days
"Outside OF central reserve and reserve
cities there are s7Ss country banks. On
August Q last these banks held s3,o'3'coVeO
of paper, OF which N,7S5.0o.OO showed a
maturity of ninety days or less ana si'-
2S70 900 a maturity OF more than ninety
days
1.-The Glass bill provides that notes and
bills issued for commercial purposes ETC.
and having maturity of not more than
ninety DAYS may be discounted by any
member bank with a federal reserve
bank. and also that the federal reserve
bank may Issue TO the reserve banks red
eral reserve currency against paper OF
this character.
"The claim which the opponents OK the
bill have been insistently making that
the volume Of eligible paper held by the
national banks OF the country was 20
small as to render these provisions of the
bill OF little value. would thus seem TO
be disproved."
An attempt to determine the exact att
tude of the Senate Banking and Currency
Committee on the administration cur
rency bill will be made tomorrow. Sena-
tors owen, Pomerene, Shafroth and Hol'
liz. supporters of the administration on
the committee. want to get definite idea
from their colleagues as to what are the
chief obstacles to q final agreement and
20 place a limit on the hearings winch
threaten 20 run for weeks.