The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1913-11-06
CURRENCY BILL CRITICISED
BY PROMINENT DEMOCRAT
Senator Reed of Missouri Says the Measure Originated In
Wall Street and Not With President
Wilson.

some inside light upon the nation
al currency BILL upon which there
seems to be dearth of knowledge
and of grasp by party leaders as well
as by the general public, is indicated
In letter sent to c. E. Wales, cash
Ter of the Bonner County National
bank, by United States Senator James
A. Reed, of Missouri. Mr.. Wales
was for some years publisher of a
paper at Shellbyville, Mo-, and Sena-
tor Reed had not learned Of his
change of residence and that Mr..
Wales had descended from the tripod
70 become a banker. The letter was
addressed to Mr.. Wales at his forme,
home and was brought forth from
Senator Reed by reason of recent crit
icisms made of him by the democrat
ic press of his state and elsewhere
to the effect that he was not observ-
ing strict party accord with the demo
cratic caucus. Senator Reed indicat-
es that these stories were circulated
by political opponents and that as a
matter of fact he has been most so
licitous as a member of the commit
tee before which the currency bill has
been in the senate for the pas
sage OF good currency measure. His
criticism has been based upon the ef-
forts which have been made to hurry
the bill through and he complains of
the haste of the house in passing the
bill
Drawn by College Professor.
Senator Reed asserts that the orr
ginal currency bill is not in any true
sense an administration measure and
that the bill was drawn by A. Parker
Willis, college professor, and an edi
tor of the New York Journal of Com
merce, generally Known says Sen
ator Reed, "as Wall Street organ"
When the bill came to the senate,
Senator Reed explains, it had been
passed by the house after a debate
which had been limited to four days,
time not as great "as is frequent
ly given to the argument of an impor-
tant lawsuit"
Senator Reed then has the follow
ing to say of the facts brought out
against the bill upon the hearings be-
fore the senate committee:
"The bill came to the senate. Up
to that time not single man in the
United States outside of congress had
been given an opportunity to appear
before any committee of congress and
discuss the bill. No opportunity was
afforded to point out either it's vir-
tues or defects although it revolution
lied our entire monetary system. 1t
applied to every bank and trust com
pany In the country, and yet no oppor-
tunity was afforded those who were
to be directly affected a chance to
advise congress whether the bill would
work an injustice or a benefit. The
bill very nearly jibed with the inter-
ests of the great metropolitan banks;
but 1t was so drawn that 1t would
In all human probability have put
thousands of the smaller banks exist
ing in the country regions out of bust
ness.
TT must be understood that this
bill was drawn by a man whose
knowledge was limited to eastern
banks, If, indeed, he possessed any
great knowledge regarding that
branch of banking. But the bill ap-
piled to every section of the coun-
try. An example of its possible in
equalities is found in the fact that as
originally drawn 1t provided for the
issuance of currency only upon prom
issory notes and bills of exchange due
in sixty days. This, of course, suit
ed the great banks of the east be-
cause they handle that kind of paper
to the small banks and country banks
particularly in some parts of the
country where the business exigen-
cies require longer time paper.
"The hearings have proceeded far
enough now so that many imperfec-
tions and dangers are apparent, and
the necessity for many amendments
is clear Here are a few:
Defects in Bill.
81. The bill provides that every
dollar in the federal treasury except
that held on special deposit and five
per cent reserve. shall be deposited
in the federal banks, and that every
dollar hereafter collected shall be so
deposited. The effect of this provis-