New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-11
VANDERBILT ATTACKS
GLASS-0WEN BILL
Defends Wall Streets Good
Faith in Desiring Cur.
renCy Reform.
SPEAKS AT ECONOMIC CLUB
Wilson Represented by His Sec.
retary-Representative Glass
Asks if Bankers Know
What They Want.

Frank A. Vanderlp, president Of thu
! National City Bank, speaking last nigh,
before fourteen hundred members of the
! Economic Club at dinner in the Hotel
Aston attacked the Glass-Owen currency
bill, defended the good faith of Wall
| Street in its desire TO have currency 70.
| form. and addressed note of personal
| advice to President Wilson begging him
not to let his judgment be clouded BY
partisan pride or the hope of partisan
advantage by demanding immediate, rath-
er than careful, monetary reform
Joseph p. Tumulty, President Wilson's
secretary, was present. and to him Mr..
Nanderlip addressed his remarks intended
for the Presidents ears. Several speak,
ers. including Senator Robert l.. Owen
and Professor Joseph French Johnson, OF
New York University had spoken for
and against the bill, but their remarks
had been received with apathy.
When Mr.. Vanderlp finished speaking
the diners stood up and cheered and
yelled for several minutes. Representa-
tive Carter Glass replied TO Mr. Wander
lip in a defence OF the Glass-Owen bill
that lasted more than an hour. He ad.
mitted that the bill was not perfect, and
probably never would be.
He said he was at a loss to know what
the bankers of New York really wanted.
for, he said, he found that Mr.. Vanderlip
had given up his desire for a central bank
and was now in favor of the essential
provisions of the new bill. He said, in
part:
Should Aid Each Other.
we decentrallze the reserves of the re-
gional reserve banks for operation IN
normal times when there is no disaster.
and when there is no crisis, but We vest
the federal reserve board with power
when panic threatens or financial strin.
gency, and there must be assistance to
compel one of these regional reserve
banks to aid the other. Is that any con-
flscatlon Of property? Don't that do II In
business way? Vest with the bank that
function; don't that require the other
bank 20 put up prime commercial paper
or bills, and require the other bank to in.
dorse the transaction?
The other power that has been oh
jected TO is the power conferred upon the
federal reserve board 10 suspend the re-
serve requirements of the bill Why gen.
tlemen Of the Economic Club, that is a
power that the Controller of the Cur
rency has exercised time and time again
within the last fifty years under the ma
tional bank act.
why. one of the greatest bankers in
this country admitted, not in boastful
way that he was one OF the twelve men
who practically controlled the credit Of
this country Before our committee he
said he very often went below his reserve.
And YOU bankers know that bankers DO
20 below their reserve. and they cannot
be required TO replace their reserve funds
except within thirty days. upon notice
of the Controller of the Currency. So,
we see that the national bank act per.
mits the Controller OF the Currency 10
exercise this very authority we have con.
ferred upon the federal reserve boards.
Professor Johnson objects that we
have permitted the regional reserve banks
unoer the House bill TO be owned and
operated by the bankers of the country.
Why, the objection we have hitherto
heard TO that provision of this bill is that
we have not made the ownership and
operation by bankers complete enough:
and here Professor johnson would take
IT away altogether. I say they should be
owned and operated by the bankers Of
the country