The Washington herald., 1913-10-16
Changes URGED
in GLASS BILL
Notes Should Be Redeemed
in Gold Alone, Says Balti-
more Banker.
THOMAS ALSO ON STAND
Colorado Senator Would Retire Pres
ent Indebtedness and Substitute
Bonds of Convertible Character.

William Ingle, vice president Of the
Merchants and Mechanics Bank. of BaIti-
more. was on the witness stand before
the Senate Committee most Of yesterday.
Mr.. Ingle assumed generally friendly
attitude towards the Glass-owen measure.
but criticised it in many details, advising
two radical changes He disapproyed
OF the much discussed INTERPOLATION of
the phrase ''or lawful money in the
redemption clause of the bill, saying that
the notes of the Federal reserve banks,
the future elastic currtncy OF the new
fiscal system, should be redeemable in
gold and gold alone.
Mr.. Ingle also took exception to the
provision that the United States govern
ment shall assume the position OF guaran-
tor Of the Federal reserve notes or that
they shall be issued by the United States
Treasury. They should be bark notes
pure and simple" said Mr.. Ingle. There
is no excuse for the placing of the gov
ernments guarantee upon the notes and
the sooner the country comes to realize
that in the development of a modern
scientific currency system the govern
ment should get as far away from the
business of issuing bank notes as possible
the better for the business Of the coun-
try.
Present Method Condemned.
The witness took s-veral severe raps at
the banking business of the United States
as at present conducted. The complaint
OF the country bankers that the pending
bills provision for the elimination of ex-
change charges between member banks
OF the new system would work a hard
snip upon the country banks, he thought
proved by its utterances that in commu-
mites where banks were unable TO exist
without such charges, the fact stood
forth most clearly that such communities
really had more banks than they needed.
lie deplored the development of the
banking business which had extended the
banking facilities to all the little towns
ana hamlets of the country Most of
the State laws providing for the estab-
llshment of banks of capital of $1,000
each, and in some instances as low as
S'OO, he thought. ought to be repealed.
lie expressed the view that banking had
become altogether too extensive, result
ing IN the gross misuse of the checking
privilege and the multiplication of the
mechanical work OF banking in the great
er business centers to the great burden
ing of the channels Of ebb and flow for
money aHd credit
Mr.. Ingle sharply criticised the present
reserve system giving approval to the
changes projected i'm the bill.
He said: THE new system would
really increase the cash reserve against
deposits, even though in terms il would |
seem TO show a decrease in the perren-
tage of obligatory reserve. 1t would also |
hy making the clearance of checks ina |
mediate cut down - per cent of the |
amount held today as deposits Under /
the present system, - per cent OF the l
credit balances claimed in bank state
ments Are, or y per cent. OF wind for the /
banks claim as credit, uncoIlected checks
In transit
Views of senator Thomas.
Following Mr. Ingle Senator Thomas of |
Colorado, who last week asked the COM
nlittee for time. appeared to explain his
own views 20 currency reform. Sem
ator Thomas, during a recent debate in
the Senate, announced himself spokes-
man for the President with regard to the |
Executive attitude toward certain of the
recalcitrant Democrats in the Senate. |
Yesterday he was On another tack, for
the system he outlined would. il given
consideration by the committee at all, |
extend not only the hearings, but also
the discussion of the measure in execu-
tive session for an endless period, be-
sides writing into the bill provisions that
not even yet have been broached in the
House of Representatives.
Senator Thomas plan, for which he
gives credit TO William A. Amberg, of
Chicago. provides for the retirement of