The Washington herald., 1913-10-18
jerks EXPLAINS
: CURRENCY VIEWS
New York University Pro-
lessor Gives Testimony
Before Committee.
GLASS BILL Is FAVORED
Expert Takes Exception to Many Pro-
visions Of Proposed Measure and
Indicates Improvement.
GLASS BILL Is FAVORED

Prof. Jeremiah w. jerks, Of the Uni
versity of New York, held the attention
of the Senate Banking and Currency
Committee throughout yesterdays ses.
sion.
Following upon the heels Of the testi,
mony by bankers, country and city, anc
one-ideaed enthusiasts with prescriptions
for fiscal nostrsms to administer Uncle
Sans financial department, the commit
with a relish.
The committee session grew more and
more informal as the day advanced. The
Senators gathered around Prof. jerks
and throughout the afternoon session his
testimony assumed the form Of a fireside
chat on currency. At its conclusion the
committee members expressed the view
that they had learned more in one day
with the reformer of China's complicated
financial system than from any dozen
witnesses who have appeared.
Prof. jerks discussed the Glass-owen
bill in detail In fundamentals he ap-
proved the measure. He thought that
the tendencies therein indicated were
good. The objections which he recorded
against the measure were definite.
Prof. jerks told the COMMITTEES that he
preferred central bank The govern
ment of this bank, he thought, might
well be reposed in a Federal reserve
board somewhat similarly constituted to
the one projected in the bill as 1t now
stands He was questioned at length
upon this suggestion by Senator Bristow,
who in the course OF the hearings by the
committee, has been won over to the
idea of a central Federal reserve bank
fortified with the provision that its con-
troll shall not be vested in the bankers.
Ex uHicIo aIembers Opposed.
Another point of OBJ lection to the pro-
jected composition Of Federal reserve
board registered by Prof. jerks was TO
the presence thereon Of ex officio mem-
bers. He said: 81 see a very clearly
defined reason for the elimination Of the
provision in this bill that the Secre-
taries of Treasury and Agriculture
should serve thereon as members. The
same objection. in less degree, however,
exists with regard TO the inclusion of
the Comptroller of the Currency in the
board membership. With the board COM
posed of but seven members, holding po-
sitions of such tremendous responsibility
as the control Of a nations finances
carries, there is no good reason why all
seven of them should not be men in
position to give all of their time to the
business of the board"
The provision IN Ine present Dill IoF
the institution of the so-caIled advisory
council" Prof. jerks does not approve.
He thinks that IL an advisory council
Is constituted ii should be privileged to
sit with the Federal reserve board at all
times, to give advice and counsel. but
without a vote. He thinks, however,
that his suggestion for two members of
the Federal reserve board, chosen as he
indicated above, would be preferable.
Another suggestion by Prof. jerks
which arrested the attention of the COM
of the regional reserve banks. In gen.
eral terms he approved of the asset cur
rency thus provided in the Glass-Owen
bill, but he thought that such notes
should not be guaranteed by or issued
by the United States government.
The redemption of the notes by the
regional reserve bank should be in gold
Prof jerks criticised with emphasis the
suggestions carried in the present bill
that the redemption might be effected
either in gold or lawful money. He said
that the expression lawful money was
in itself an invitation to imitation. His
reasons for urging the necessity of place
ing a definite embargo upon the reissue
of the Federal reserve notes from any
regional reserve bank without their hav-
ing first passed through the process of
redemption by the bank of their initial
issue left in the new system a tendency
toward currency imitation, and he sug-
gested that currency imitation carried in
its train price advances tending toward
the elevation of the cost of living