Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-06-24
Tashington
w LETTER
BY H. 3. WALKER
SHIFT ON CURRENCY BILL
81 H. 3.
star stnff oorrespondent.
Star Bureau,
Metropolitan National Bank Bldg.
WASFIINGTON. ,Juue "a.

Within forty-eight hours the cur
rency situation in Congress has COM
pletely shifted. The public indorse-
ment of the administration bill. just
before the Presidents personal ap-
peal to Congress for legislation, has
had the effect of entirely reversing
the tables. Last week 1t was the
Bryan forces in the House and SEN
ate who were expressing dissatisfac-
ton and meditating insurgency. Now
it is the conservatives who are look
ing dubious, while the radicals are
themselves tremendously for the
White House program.
There was muttering among the
Bryanites and ex-Popuillsts over the
first announcements of the proposed
legislation and its plan for a cur
reney board made UP of bankers and
controlled by the banks. Now, bear
ing the Bryan Endorsement of its
amended plan for a government board,
the radicals are falling over each
other getting in line for the legisla-
ton, while most of the protests heard
are coming from bankers and bank
Ing interests, based on the fear that
the control of the currency by pub
lie board is going to put the banks
under political control and bring
politics into banking.
Protests of n Few.
A few men are protesting that the
bill doesn't go far enough, in that it
doesn't carry out the recommends
tions of the Pujo committee for re-
straining and regulating the New
York Stock Exchange, forbidding in
terlocking bank directorates and
making bank purchases of railroad
securities subject to government SUI
pervision A few others, in answer to
the bankers fears of bringing politics
into banking, are saying that there is
greater danger in the present bill of
forcing banking into politics, although
1t is admitted that the danger of this
is rather remote.
1t is frankly admitted, even by the
men who aided in making the adj
ministration bill, that it does not
provide for such complete and funda-
mental reforms in the banking, cur
rency and money system of the coun-
try as may eventually be necessary.
1t is as frankly admitted that no
effort has been made to make it
such fundamental reform. In the
opinion of the President and those
of his advisers who helped frame the
BILL there is real and immediate need
for making the currency more elias
tic, and for freeing the control of
business credit from the power of
such private agencies as the New
York Clearing House and great spe
cial interests.
To Avert Panic Plot.
Not only is there a Democratic be-
lief that big business means if pos
sible, to force a panic or hard times
following the enactment of the new
tariff law, which will be at least
more difficult to accomplish with a
free, uncontrolled and elastic cur
rency, but 1t is highly desired by
the President that no loophole should
be left open to make possible a repe-
tition of the money panic of 1907,
when the inelasticity of the currency
system and the lack of available
money led to the extensive use of
Clearing House certificates and
forced into failure a number of per-
fectly solvent banks and financial
institutions.
Relief from the conditions existing
in 1907, at least partial and tempo
rary relief. was afforded by the
Aldrich- Vreeland currency bill of
1909, under which Secretary McAdoo
recently announced himself ready to
issue $500, 100000 of emergency cur
rency. The Vreeland act, however,
was enacted for only five years, and
becomes null next year by the ex-
piration of the five-year term.
Should the consideration of the cur
rency question be left until the regu-
lar session next winter, and then
confused with a hundred other sub
jects of legislation, it Is feared by
the White House ana administration
supporters that action might be de-
layed or made impossible until after
the Vreeland act had expired, when
the country would be left in the
same condition it was in 1907.
Ready for Amendments.
While it must be admitted that
there is no great enthusiasm either
in the House or Senate for the Pres
ident's program of passing currency
legislation before adjournment of the
present session, there is no organized
or vigorous opposition to the general
plan of legislation proposed by him.
Criticism is made of some features of
the bill, but Mr.. Wilson has made it
plain to those with whom he has
talked on the subject that he does
not intend to demand it's acceptance
exactly as it stands, and is perfectly
willing that Congress shall consider
the subject carefully and make such
amendments as are found to be wise.
| He has announced that he will stay
| in Washington, and even remain at
the Capitol, If desired, while the bill
is under consideration, and will con-
! fer with any members at any time as
| to changes proposed in the measure.
! The prevailing sentiment here to.
day is that the President has passed
the crisis in his fight for currency
reform and will be able to add tn,
new currency system to the tariff re
vision as the first big accomplish
ments of his administration.