The San Francisco call., 1913-09-10
BANKERS ARE
CHILLED BY
GLASS
Currency Bill Would Take
Control From Big Finan-
ciers, He Declares

WASHINGTON, Sept. 10.-Denounc-
ing the bankers who have criticised
the currency reform bill, as designed
to institute political control of the
banking business of the country,
Chairman Carter Glass Of the house
banking and currency committee
opened debate on the measure in
the house today. He declared the
bankers are designing to coerce con-
gress to yield on points vitally i'm
portant to the banks in regard to
stock. exchange connections.
Glass reviewed the provisions of
the bill at length, declaring that its
main purpose is to remove the bank
ing reserves of the country from the
big banking centers, where credit
is pyramided' and used for the benefit
OF the large banking institutions.
Arguing against the criticism that
the federal reserve board might be
used for partisan purposes, Glass
said:
Il happened to be present when an
eminent banker suggested such a pos
sibility to the present occupant of the
executive chair and heard this banker
vainly challenged to show how it
might be done. / never shall forget
the emphasis with which the presi-
dent of the United States declared
that no man would ever be found who
would imperil his reputation or tar
nish his name by so fagrant pros
titution of his high Office
Glass indicated that federal reserve
banks would probably be located at
New York, St Louis, Cincinnati, Wash
ington, New Orleans and in the state
of Pennsylvania.
do not hesitate to account for
the fact that the batteries of the big
banks have been turned upon this
board" said Glass, defending the re-
serve board plan, and yet there is
hardly power enumerated in this
bill which has not been exercised by
the government for SO years, or, in
deed, which has not been confined to
one or two public functionaries'
THE real peril with regard to the
board, continued Glass, lis not that
enough bankers should serve upon it,
but that there should be too many.
The whole right of the great
bankers is to drive us from our firm
resolve to break down the artificial
connection between the banking busi-
ness of the country and the stock
speculative operations at the money
centers.' Glass continued.
Under existing law we have per-
bllttCu OdiihS W pNIditllu ClcQli upon
credit and to call the credits re-
serves. 1t is a misnomer; they are
not reserves. And when financial
troubles come and the country banks
call for their money with which to
pay their creditors they find it all
invested in stock gambling opera
tions.
The avowed purpose of this bill
is to cure this evil: TO Withdraw the
reserve funds of the country from the
congested money centers and to make
them readily available for business
uses in the sections of the country
where they belong
The shift, Glass said. would be
made cautiously and without harm to
business.
The real opposition of this bill
he. continued, sis not as to govern
ment control. upon which we shall
never yield; 1T is not to compulsory
membership, which was also pro-
vided in the Aldrich bill; 1t is none of
these things that vexes the big bank
ers 1t is a loss Of profits derived
from a system which makes them the
legal custodians of all the reserve
funds of the country, S240, 600, 600 of
which funds on the Gath day of No
vember. 1912. they had put into the
maelstrom of Wall street stock oper-
atfons'