Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-08
CURRENCY b|LLLF0R
EXECUTIVE. SESSION
1
House Plan Likely to Be Fol-
lowed by Senate Committee.
Considering Amendments.
HASTY CONSIDERATION
CALLS OUT OPINIONS
Frank A. Vanderlip Gives His Views
on the Pending Measure-Em-
phatic Objections.

When the hearing before the Senate
banking and currency committee closes
the majority members of the committee
probably will meet in executive session
to consider all amendments to the ad-
ministratfon currency bill, according to a
prophecy made at the Capitol today
ms is the plan that was adopted in the
House, where democratic insurgents
against the bill were members of the
banking and currency committee
Although Senators Hitchcock, Reed and
O'Gorman, democrats, are not yet classed
as insurgents against the administration
measure. they are known to oppose many
features OF the bill. If the bill, therefore,
should be considered for amendment in
the 1uli committee, with the republicans
present, the administration forces on the
committee would be in the minority.
Chairman Owen was asked a point
blank question today regarding this
matter.
Il have not discussed yet with the
majority members Of the committee
what the proceedings shall be-" was his
| reply.
Senator Hitchcock also said that SO
far as he knew this matter had not
been discussed
! Administration efforts to apply the spur
to the Senate banking and currency com
mittee, and hasten consideration of the
Presidents currency bill, drew forth a
souri,, one Of the democratic members
of the committee who has opposed haste
| Senator Reed In q statement took the
position that the committee Is not vast
ing time and that the Importance of the
bill makes careful consideration an abb
| solute necessity.
Compared With Tariff Bill.
THE currency bill reached the Senate
September 49," said Senator Reed. land
was that day referred to the banking and
currency committee. Counting Sundays,
the bill has been before the committee
twenty days.
| When it is remembered that the
| tarin had been discussed for a quarter
of a. century, that two separate poll
| cies had been developed, that the peo-
pie had declared in favor of one of
them. that only adjustment of the tariff
1t took the Senate working diligently
from May 8 to October to- perfect
and pass the bill. any. complaint that
i the banking and currency committee
has been guilty of undue delay be-
cause it has held hearings for twenty
days Is most unjust. not to say absurd
| Il do not want to be understood as in
any manner criticising the bill or the
| administration, or that l believe the
bill cannot be put into shape to be ac-
| ceptable as q solution of our Difficult
1 ties
/ Frank A. Vanderlip, president of the
National City Bank of New York, told
the general banking committee today he
l fnd0rQa6 S>t of he
administration currency bill. Mr.. Van
derlip, however, criticised adversely ,eer-;
tain points, notably the Independence Of
| the regional reserve banks, the charac-
| ter of the note issue plan and the sec
| ton compelling all national banks to
become members. Of the proposed sys-
| tenn.
Many Excellent Qualities.
Aside from those objections, however.
he found many excellent qualities in
the administration plan, and took issue
with many bankers who have criticised
adversely different parts of the bill
A repetition of the panic of 1907 from
such causes as brought it about would
be impossible under the proposed bank
ing system said MT. Wandering. He de,
be greatly minimized in importance
under the new plan, and that hundreds
of millions of dollars now usd for cali
loans on stock exchange collateral
would be turned into commercial chan
nels. The reserve system proposed
would be superior to the present sys-
tenn. he said.
Mr.. vanderlips objections were en-
phatic on certain points, however. He de-
| clared the new Treasury notes guaranteed
by the government would find their way
into the reserve of non-member banks
and ultimately no elasticity would be
L IN n unly nj 10
| thought there would be no incentive under
the new law to retire the present bond
secured national bank currency and there
fore there would be little room for the
proposed issue of Treasury notes.
| Mr.. VANDERBILT said the bill would
| cause a loss of $5O.OO0,OOO of deposits by
his bank, but he believed the measure
was a step In the right direction, al
needed reform. The bill, he thought.
would increase, rather that decrease, the
financial supremacy of New York.
To Eliminate Call Loan Market.
| Questioned by Senator Hitchcock, Mr..
VANDERBILT said that the one great object
of legislation should be to give the banks
a market for money which would elimi-
nate the call loan market on the New
York Stock Exchange.
AT present" he said, I'VE must use
our funds there because that is the only
place in the world where a call loan can
be called at once"
Don't you think 1t is an element of
danger 10 have our banking money loaned
on stock exchange collateral on the cali
loan market?' asked Senator Reed.
1T is an element of danger and II Is
unsound banking, but it Is the soundest
banking we can do with our present sys-
tenn. No one will be more thankful than
the great banks of New York IL we can
/ eliminate that evil
Mr. Vanderlip said that the safe sub
stitute for this system would be the es-
adjustment of a bank of rediscount
where banks could secure money at once
on good commercial paper.
/ President Now Backed.
That the currency is to be made q
party measure and the democrats of the
Senate whipped into line to support the
measure was the prophecy made at the
| ttal ~