The Washington herald., 1913-10-04
RADOO DEFENDS
GLASS MEASURE
Secretary Answers Criticisms
Aimed at Rediscount
Provisions.
LAST REPORT QUOTED
Volume of Eligible Paper in Banks
Declared Sufficient to Justify
the Bill.
LAST REPORT QUOTED

The Wilson administration began its
active campaign in defense of the bank
ing and currency bill yesterday, when
Secretary of the Treasury McAdoo issued
a statement giving figures in contraven-
tIon Of attacks that have been made on
the measure. Here is Mr.. McAdoo's state
ment:
1t frequently has been asserted, since
Sic currency question has been under dis
zaSsion, that the banks hold an INSULT
sent amount Of paper maturing in ninety
lays or less to make the rediscount pro-
~Esions of the Glass bill valuable TO the
hanks and 10 the commercial interests Of
the country.
I'm order to secure accurate informa-
ton on this point, the Comptroller Of the
Currency on the last call, August 8, 1913,
required all national banks to report the
amount of paper held by them, showing
how much carried a maturity of ninety
days or less, and how much maturity
of more than ninety days.
"A few of the banks failed TO classify
the maturities, but the omission affected
only about 213 per cent of the total.
Percentage of Maturity.
The reports to the Comptroller show
that the national banks of the country
held on August 9. 1913, s. O22, 4O6, 597 of loans
and discounts. OF this sum, there was a
total of SSi2S, 05J, 157 maturing in ninety
days or less, and a total of s, 59I S5l, 40
maturing in more than ninety days. In
short, IS per cent OF the paper held by
the national banks showed a maturity in
ninety days or less and - per cent in
more than 20 days.
The central reserve city banks held, in
round numbers N.S15.OOd.OOO of paper. of
which S15S.CC0mo showed a maturity Of
ninety days or less, and S616, 900, 900 4 ma
turity OF more than nil ETY. days.
Reserve cities. other than central
reserve cities, held total Of Sl,573, 600, 900
Of paper, of which SF;3. 900 600 showed
maturity Of ninety days or less, and
$751;, a maturity of more than ninety
duls
Outside OF central reserve and re-
serve cities there are G,736 country banks.
ON August . last. these banks held Si.0T5.-
Ua.Wn Of papcF,-of which SIZE, O11 90
showed a maturity of ninety days or
les. and S.:c51, on0, 900 a maturity OF more
than ninety days.
The Glass bill provides that notes
and bills ISSUED for commercial pur-
poses. &c, and having a maturity
Of not more than ninety days, may be
TedisCounted by any member bank with
a Federal reserve bank. and also that
the Federal reserve board may issue to
the reserve banks Federal reserve cur
renry against paper OF this character.
The claim which the opponents of
the bill insistently have been making
that the volume of eligible paper held
by the national banks of the country was
so small as to render these provisions
Of the bill of little value, would thus
seem to be disproved.
The volume of short term paper con-
stantly held by the banks of the country
~ so great as to make the facilities Of
fered by the Glass bill of incalculable
benefits 10 the business interests of the
country"
Committee HenrS Witnesses.
Representatives, bankers of the cotton
belt section of the United States and
the group Of Hoosier hnanciers who be-
gan their testimony at Thursday morn
ing's session of the Banking and Cur
rency Committee, yesterday were heard