The sun., 1913-10-28
VANDERBILT REPLIES
TO GLASS CHARGES
Head Of National City Bank
Says He Is Trying to Help
the Committee.
MEMBERS ASKED HIS AID
Not Opposed to the Legislation
Nor Confusing the
situation.

Frank A. vanderlip. president Of the
National City Bank. answered the charge
of Representative Glass that he had
drawn a red herring across the tratl' In
putting forward his central bank plan
with the purpose Of defeating the Glass
owen bill.
MIR. Vanderlip asserted that he had
drawn up the plan solely in response to
the request OF the Senate committee. that
he was not opposed to currency legislation
nor trying to confuse the POLITICAL situa-
ton He denied that he had been incon-
sistent In his views. This IL his statement
in part:
I believe no one regards sound currency
and banking legislation as more desirable
than I do. and nothing can be further
from my wish than to prevent such leg.
islation. | believe that the bill that has
passed the House can be amended 80 as
to become workable plan. II Is not
workable now. and 7 think not single
member OF the Senate committee believes
that II is workable. I disclaim abso-
lutely. however. coming into the situation
at this time with any intention OF block.
ing the course of legislation.
Asked for SsGgestions.
when l first appeared before the Senate
Ranking and Currency Committee I Was
requested by that committee tn prepare
a complete set OF amendments to the
House bill so to make II CONFORM to
what I believed would be sound economic
lines. as well as to make II practical
working measure ] devoted myself 10
the task and submitted the suggested
amendments with the reason for each
amendment to the committee.
At the time OF the first hearing 7 was
also asked by three Senators to engage
my mind with the problem as to whether
or not plan for a Government controlled
central bank could be worked out. I'm
media,e,y after completed my recon-
mendations for amendments to the House
bill | set to work In answer to the second
request engaged in this solely as a
result OF the request made by membeN
OF the committee In no sense did j
volunteer the suggestions that resulted.
The suggestion that have been incon-
sistent has not been borne out by the
facts. I explained to the committee that
up to the time tnat I had undertaken to
prepare this plan I had always felt that
no central bank could be organized under
the control OF public officers. because y
variation In rates for different sections OF
the country would be necessary. and the
political pressure upon public board
from a community where a higher rate
was cnaT&eU Uc SutI tHht HO PuOiC
board could successfully resist such pres
sure and give so the bank sound economic
administration
Tried 10 Develop Plss.
In endeayoring to develop the plan. the
idea was evolved OF charging each bank
the minimum discount rate up to 80 per
cent of the total amount that the bank
might be authorized to discount at the
central bank. and on borrowings above
the 80 per cent. minimum a progressively
higher discount rate should be charged
That idea solved the objection that | had
always felt must exist toward . central
bank managed By public officers II Offers
q plan for a bank that will rediscount
for every other bank on an exact equality.
charging the same rate under similar con-
ditions to all.
The request that the members Of the
committee had made OF me was to pre-
par. plan for central bank under
Governme control. not whether | would
recommend some other kind Of control
My work on that plan has been strictly in
cooperation with the committee. and the
result has been my best effort to meet the
views OF those members who asked me to
prepare such a plan.
For many years ] have consistently
held that a central institution was the only
Ideal solution and in the first hearing
gave that opinion to the committee as en-
phatically as knew how.
have given the Senate committee my
best judgment on how tO amend the House
bill and then on how to meet certain
fixed views OF members OF the committee
that there should be an entirely Govern
ment controlled central bank. The latter
plan seems to me the wiser. but its pre-.
sentatOn does not indicate that I am
opposed to leEislat ion or that ! am try.