New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-27
VANDERBILT PLAN A
SURPRISE SAYS .SCH|FF
Sudden Reversal on 0Wen-GIaSS
Currency Bill Stirs
Wall Street.
BANKERS NOT SATISFIED
Proposed Substitute for Bank
ing Measure, 1t Is Said,
Does Not Meet Approval
of Financial Community.

OF FINANCIAL community.
Sectional strife and class dstrust are
already too rampant, says Jacob H. Schiff
In statement made public yesterday
outlining his views on the proposed sub
sttute for the Owen-Glass banking and
currency bill, as put forward by Frank
A. Vanderlip. He holds that the PROPOSE
ton is far from being satisfactory to the
banking interests The financial COM
munity, he says, is surprised that Mr..
Vanderlip should now reverse himself on
the plan which he recently recommended
further:
The Vanderlip proposition has come as
a complete surprise to the financial COM
munity and is far from meeting general
approval in banking circles. The strang-
est part of it is that only last Monday
Mr.. Vanderlip, at a special meeting OF the
Chamber of Commerce. made a report
for its finance and currency committee. of
which he is chairman, strongly recon-
mending the enactment of the House
currency bill-now before the Senate
provided certain stipulated changes were
effected; a report which, with its recon-
mendations, the chamber adopted with
out dissent.
within three days thereafter Mr. Van
derlp springs upon the country plan en-
tirely different from the one he had just
emphatically recommended, except as to
certain required changes, and which he
had only very recently publicly COM
mended as so per cent good
1T is, however. unjust TO charge Mr.
Vanderlip. as has been done. with de-
sire to break up the pending legislation
for he is surely actuated by high. even II
mistaken. motives.
Il think. however, | am justified In
saying that a considerable part of the
financial and commercial community OF
New York. and OF the East in general
is anxiously desiring the settlement of the
currency question at this time and Is ad
vocating the speedy enactment Of the
pending measure, with the changes that
have frequently and forcibly been pointed
out: these are. notably, the proposed
amendments that shall reduce the mum
Der Of regional banks and give reason
able representation to the banking anc
commercial interests OF the country upor
the federal reserve board.
"As a matter OF principle, the desire Is
also justified that the proposed note Issue
be made the obligation OF the banks anC
not OF the government, though this, undel
the provisions and limitations Of the pend
ing measure, is i'm effect more matter o
form than Of substance.
What is most surprising in Mr.. Van
derlip's proposition is that after all tina
has been said against the ACCESSIBILITY o
giving the government sole contro
through the Federal Reserve Board, al
objection which no one has, believe. EN-
phasized heretofore more persistently thar
Mr.. Vanderlp. he should now so complete
~ reverse himself and be willing that tn
government alone be vested with the vot
ing power Of the entire capital stock o
his proposed central bank, and thus Civ
II control Of both head bank and branches
Nor is IL likely that the stock of ;
bank. TO be subscribed for, as Mr.. Van
derlip proposes, by the people at larg
and dependent for its value solely upoI
uncertain and huctuating dividends, cal
be prevented from becoming more or les
the football OF speculation. with all tn
III effect this might produce upon tn
credit Of the corporation itself, the stand
ing Of which is so important to maintain
without the least blemish.
with the eminent position Mr.. Wander
lin occupies, and with the weight hi
views and opinion justly carry. his actor
NAV. II cannot be denied, prove a serious
menace TO currency legislation at thi
time and to the final reaching of the goal
which is now in sight and almost at
tanned.
The responsibility Mr. Vanderlip ha
thus taken is very great for If currenc!
legislation be now defeated who know
when we shall obtain ii and what the con
sequences OF the disappointment the coun
try will then experience may prove TO be
Students OF financial history know tina
the enactment OF national bank Legislation
Of the early SOS. which has helped 81
greatly I'm saving the very life OF the ma
tion. was attacked and fought even NOR
bitterly tnan tne present JUST 40 iiiipoi Tan
measure, but Salmon p. Chase, Its orig
inator. won the day, and his name con
tinues to live, while his opponents are for
gotten.
"m our own time sectional strife an
class distrust are already too rampant
let us do nothing TO further intensity this
but make every effort TO appease 1t. Al
| imnortant legislation has. as a rule. bee
the result OF compromise, as this currenc
legislation must necessarily be, and II W
shall succeed. after having successfuli
settled the tariff. to get now also currenc,
reform reasonably adjusted 1t is not un
likely that for a long time to come tn
country will have economic rest. whic
will surely accrue TO the benefit OF ever
-.I.. nnh sses of nur neOnleh