Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-03
CURRENCY BATTLE
NOW IMPENDING
Effort to Delay Action Until
December Is Likely
in Senate.
HACKERS OF PRESIDENT
SURE TO OPPOSE PLAN
Bankers Views on Paper Money Ex.
pressed Before the
Committee.

L ''ASiAAA a lew udSS d IIotioH IL IhCAs
to be made in the Senate directing the
committee on banking and currency
to report the currency bill to the Sem
| ate December 1 next, the committee
to give thorough hearings on the bill
| meanwhile. Such a motion would be
| vigorously resisted by the administra-
| t1on leaders and would precipitate a
| contest of strength between the op-
ponents and advocates of what those
| inimical to the pending bill call hair
trigger currency legislation
President Wilson's more immediate
hackers in the Senate contend that the
bill should pass before the present ses-
dorsed ~ the commercial interests and
the banking community outside of a
few big eastern banks
No good can come of delay, 1t is
| urged, and the only result would be
confusion and uncertainty. The Presi-
dent is satisfied with the bill, con-
| vinced that 1t Is satisfactory to the
mass of the people concerned, and
end to discussion.
Reports Do Not Agree.
ouf OH ACpoi 10 w AAOt d6i &C cS ~ SAiS
acceptance of the bill by the banks at
large. Senator Gronna said yesterday
that 200 small national banks in his state
would find the bill unsatisfactory to them
Banker Wexler Of New Orleans told the
committee today that in the present form
Of the bill very few small banks would
come into the federal scheme.
In many sections of the country ma
tional banks are threatening to abandon
their national charter and take out state
charters, if the compulsory joining fea-
| lures of the pending bill are retained.
Senators hear mingled praise and criti-
cism of the bill
1t is this seeming uncertainty of the
banks at large over the bill which is fo-
menting the sentiment in favor of post
poning action on the bill. But it is an ad-
ministration measure, the administration
Is entirely willing to assume responsibility
for it and the administration friends in
tend to resist to the last any effort to
shove the bill over until next session.
The kind of national paper currency
the American Bankers Association
would like established in place of the
by the administration currency bill
was outlined to the Senate banking
committee today by bankers who de-
clared they did not favor asset cur
credit Of individual banks because of
the danger of wild cat banking"
I'VE believe 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. said Sol Wexler of
New Orleans, one of the spokesmen for
the recent bankers conference at Chi
cagO.
Committee Has Open Mind.
Senator Reed. democrat. declared he
was welded to no particular currency
plan," and throughout the hearing wit
nesses were questioned with freedom.
indicating that the committee would
take up the administration plan with
open minds.
The chief evils Of the present banking
system, Wexler said, were the lack OF
a flexible circulating medium" and the
fact that banks have mo place to go for
rediscount when we have exhausted our
own credit facilities"
1--WE believe the reserves Of the cOun-
try should be in one big reservoir, said
he, where they are readily accessible,
rather than scattered in 10000 or more
little piles, where they can be of little
benefit to the country in general
Quizzed as to Need of Law.
Mr.. Wexler was asked if he knew of
any unusual emergency that require i'm
mediate currency legislation. He said
the need of reform rested in the growing
Inconvenience due to shortage of money
at crop moving season and the failure of
the present system to meet all the nee1s
of business.
An increased issue of government
bonds and an increase in the bond-se-
cured national bank currency would
not meet the present needs of cur
rency reform, Wexler thought.
The bankers again suggested the ad-
vantages Of a single central bank.
especially as to the fixing of rate of
discount for all parts of the country.
Mr.. Wexler said, however, that he did
not believe the federal reserve board
under the administration bill, would
| arbitrarily try to fix different discount
rates for different parts of the country.
1.-The rate of discount would really
be fixed by conditions in the region of
the reserve bank" he said. "and the
federal reserve board would simply
promulgate that rate.
System to Prevent Panics.
The possibility of constructing a finan-
cial system that would prevent recur-
renee of panics similar to that of 1907
came squarely before the committee dur
| ing the examination of Mr.. Wexler. He
was aSkOQ ny OcudlOA AeOSu IL d SJ SlcIIl
giving greater elasticity and enabling
bankers to convert their assets. into cash
through a rediscount bank would not pre-
| vent panics.
with such privileges there probably
could be no panic arising from the same
causes that produced the last two said
Mr. Wexler. Under any circumstances,
banks probably could go on paying out
money for the ordinary needs of business.
But there can be no perfect panacea
against the folly of men. A period of
wild and extravagant living. great specu-
| lation on the part of the classes that
usually save, the investment of savings
| in wild cat mines-such conditions will
! produce a panic, no matter how carefully
| a national banking system may be de-
vised."
Forgan and Wexler Heard.
| James d. Forgan Of Chicago and Sol
wexler of New Orleans were the first
bankers heard yesterday afternoon by
the banking and currency committee
Suggestions upon which they dwelt with
! chief emphasis were:
| That the banks rather than the federal
/ Treasury issue currency.
| That a central bank, or not more than
Il