The Caucasian. (Shreveport, La.) 1900-192?, 1913-06-26
CURRENCY REFORM.
The Bill Is Step in the Right Di-
rection-The Primary Cause OF u
Panic.

rection-The Primary Cause Of u
Panic.
The Chicago Sunday Tribune
Washington special referring to the
currency reform legislation desired
by President Wilson says:
Back of the bill approved by the
President is the whole power Of the
administration. The man who Will
lead the fight in the Senate is Robert
l.. Owen of oklahoma, chairman of
the Banking and Currency Commit
tee of his chamber. The champion IN
the house will be Garter Glass, a
Virginia congressman, who is chair
man of the Banking and Currency
Committee of The lower branch.
Opposed to the measure are Dem
oCrats, Republicans and Progress
ives, some of whom contend the blll
does not go far enough, others who
claim it goes too far, and large
number who argue that it is unwise
at this session to enact any bank
ing and currency legislation at all.
Measure Il Compromise.
The bill agreed upon by the Pres
ident, Senator owen and Congress-
man Glass is in the nature Of a
compromise, and does not fully meet
the views even of these three men.
Mr.. Owen, for example, wanted 10
90 further than Mr.. Glass. 1t is due
10 him to say that had it not been
for his insistence Mr.. Glass and his
associates would not have consented
10 the principle of government con-
troll, which the measure recognizes.
Mr.. Owen has insisted that the
real questions to be considered II
framing legislation are the follow
ing:
The prevention OF panic.
The protection and promotion OF
our national commerce.
The firm establishment of stabl-
lily in business affairs.
The maintenance in active opera
ton of the productive energies Of
the Nation.
Owen Experienced Banker.
The Oklahoma senator has long
experience in banking affairs. 1t was
through his efforts that the provis-
ions of the national banking act
were extended TO Oklahoma. He
served as president Of bank, and
therefore has had practical expert
ence in banking. He went abroad in
1893 and studied European financial
systems and conditions.
| The speech he made in the Sen
| ate in 1908 had a powerful effect IL
defeating the inadequate and unsa'-
| isfactOry Aldrich scheme. Support, Il
by his observations and experience
Of quarter of century, the Demo
Gratis of The Senate recognized his
peculiar fitness to serve as chairman
of the banking and currency com
knittee and to lead them in the SEN
Yatorial struggle for currency reform
| The primary cause of a panic, OF
| course, is the fear of the people OF
| the insolvency of banks, and the real
cause is when the depositors, num-
bering millions, draw out their small
deposits and hide them away. To
prevent panics Mr.. Owen believes
That the first essential is the secur-
lity of the bank deposition and the
second is emergency circulation.
Both of these are essential to the
stability of commerce.
List OF Currency Defects.
The defects in The present bank
ing and currency system which have
been in Mr.. Owens mind in Inc work
he has been doing are The following
| 1. Tying up of the resources and
reserves of the banks of the United
States in loans for speculative pur-
lpOses when their resources should
be available for legitimate COM
merce, for manufacturing and in
dustria enterprises, and for moving
!, The agricultural, mineral and man.
ufactured products Of the country
2. The leaning Of funds to active
officers Of bank without proper
safeguards.
3. Inadequate cash reserves, which
he thinks should be strengthened.
Mr.. Owen thinks it is a matter ot
+, small concern what the banker!
want in connection with the pro
! posed legislation, or where the
send their money for interest. 1t j
what The country as a whole shoult
have which concerns him.
Believes In Supervision.
! | II is because of this belief that h.
J so strenuously demanded and sue
y Cceded in forcing the adoption of