Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-25
Senator Shafroth Would Sub
stitute Treasury for Ma
ti0naI Bank Notes.
PREDICTS A SAVING
OF MANY MILLIONS
Administration Will Not Follow
Suggestions Of Bankers
Conference.

all existing currency except silver certifi-
Gates and the issuance of a general form
Of Treasury notes secured by so per
cent gold reserve was introduced in the
Senate today by Senator Shafroth OF
Colorado. majority member of the Sem
ate banking and currency committee.
Senator Shafroth's bill would substitute
Treasury notes at once for all outstand-
ing national bank notes, and would can
eel the government bonds that now form
the security for the national bank cur
rency.
Large Saving in Interest.
He said today his bill would save $14,-
500, 900 in interest now paid by the gov
ernment on bonds used to secure national
bank currency, a sum that would be in
creased to So. .246.O0O If the per cent
bonds were refunded with per cents.
ut would take control of the currency
out of the hands of the banks and place
it in the government" said Senator
Shafroth; lit would satisfy the bankers,
because it would cash their per cent
bonds without loss"
received by members Of the Senate COM
mittee. Among them are requests from
officers Of leading labor organizations.
Labor Leaders, Suggestion.
One such letter. from T. J. Dolan of
Chicago, secretary-treasurer of the
Brotherhood of Steam Shovel and
Dredgemen. said in part:
1.-THE workingmen of the country are
just as much, II not more, interested In
the pending currency measure as any
other Glass; as they are the people who
deposit their earnings in the savings
banks of the country. I believe II repre-
sentative men of the different classes of
invited to participate in a conference
great good would come from it.
Bankers May Be Ignored.
Democrats of Senate and House are
not disposed to adopt the suggestions
made for currency reform at the bankers
convention in Chicago The bankers have
proposed that the government have not
SO tight a hold on the banks; that the
advisory board Of bankers which is to
serve board shall exercise q veto power:
that a central bank be created, and that
national banks may affiliate with the
system instead of being absolutely re-
quired to do SO as provided for in the
Glass bill
Not until the bill reaches the Senate
will the bankers have an opportunity to
present their arguments to Congress. The
democrats of the House are disposed to
pass the bill as 1t stands.
Administration Firm.
The report that Secretary McAdoo Of
the Treasury Department conceded the
likelihood that the bill would be- amend
ed to meet bankers criticism is re-
garded skeptically in official circles.
The administration is firm for the bill
in essentially its present form. and
will not willingly yield to changes in
volving any of it's fundamental prin-
cip1es.
Strong assurances of support are daily
being received by President Wilson from
banking and business interests of the
country. That certain powerful bankers
are trying to intimidate the smaller bank
ers, through the medium Of the Chicago
convention. is an opinion held in official
circles. The President does not invite
such assistance in framing the currency
legislation IL this aid is to take the form
of antagonism to essential features, such
as government control of special issues
and the fundamental number of reserve
banks. He is convinced that opposition
to the bill will have disappeared, except
where selfish interest directs criticism,
before the bill becomes law.
Not Views Of Rank and File.
President Wilson does not regard the
objections raised by the Chicago con-
ference as representing the view OF the
rank and file Of bankers throughout the
Ia To
general opposition to the various pro-
posals of the Chicago conference, though
he has not examined them in detail
The President told callers he had re-
ceived expressions of hearty support for
the administration bill.