The Birmingham age-herald., 1913-09-24
ADVOCATE REVISING f.
THE CURRENCY BILL
Reed, Hitchcock and Bris-
tow Propose New Plan
UNTERMYER OBJECTS
Says Hitchcock Plan Would Not Offer
Enough Security to the Govern
ment for Issue of
Currency
UNTERMYER OBJECTS

Washington, September 23--eomplefs
revision of the framework OF The al
ministration currency bill was pro-
posed by Senators Reed. Hitchcock aud
Bristow today during the examination
of Samuel untermyer before the Sen
ate banking committee. Reed and
Hitchcock have vigorously asasiled GER
tain provisions of the House bill
senator Reed advanced what he
called the Hitchcock plan which would
eliminate from the proposed system the
entire scheme of regional reserve banks
and substitute a government issue q
currency to individual banks on com
mercial paper backed by 50 per cert
gold reserve up to 75 per cent Of the
capital stock of each individual bank.
Reed Makes Long Speech
That woutd be in addition TO the
present bank note issue. senator Rect
in long speech advocating .he plar
criticised the regional bank plan as
making the individual banks subser-
Went to combination of banks
Mr. Untermyer opposed the flitehcoeie
plan as not offering enough seeurits
to the government for the Issue of cur
rency. The committee was unable 10
conclude the questioning of Mr. Un-
tei'myer today and he will return Mon
day next.
Mr.. Untermyer made it plain that in
his testimony yesterday he desired to
deny that the federal reserve board
would be able to use its influence for
political purposes Senator Reed sug-
/ gI4n ar . 80
against banks to which notes would be
issued to form a sinking fund 10 pay
off the government debt in nucleus.
This Is a revival of the bank guar
antee plan commented Mr. Untes-
mycr.
The committee also heard delegation
of Minnesota business men representing
the Minnesota commercial organizations
Edward p. Wells told the committee that
the delegation. although opposing the bill
did not represent banking interests. lie
declared the idea for capitalizing the fed-
eral reserve banks was ceasscatng cap
ita and putting it into an sorganiza-
ton that might become the football of
politicians.
Wells believed country banks would be
unable TO take advantage OIL the feuts-
count provisions because much farmers
papers ran for a year and under the bill
only 90-day paper would be available for
rediscount.
Says Small Bankers Oppose
Mr.. Wells declared that in talking with
300 country bankers in the northwest he
had not heard a single expression in
favor of the bill.
81 believe the business men of the cou:l-
| try he said, would be satisfied to con-
tinue under the present system temporal
rily at least. long enough to allow pro-
posed legislation to be thoroughly con-
sidered and digested.
| Charles NJ. Harrington read lengthy
argument TO show that under the pro-
posed system the banks of the snorth-
west would not have available sufficient
funds to handle the farmers products
during the fall and winter months
f. +. kenaston said that in his busi-
mess of manufacturing farm machlnerv.
he found ii necessary TO borrow money
ON paper running from nine months to
one year. in order to accommodate the
purchasers and for that reason the 80
days" provision Of the hill would make
the proposed loan system valueless to
him
lie added that the provision of the bill
allowing the rediscount of paper running
up to six months, when used for export
or import transactions, was "A rank dis
elimination against domestic business.
The other members OF the Minnesota
delegation will he heard tomorrow morn
ing.