The Washington herald., 1913-09-20
GOLD STANDARD
upheld in BILL
Chairman Glass Issues State
ment Reviewing House
Currency Measure.
CHANGES ARE PROBABLE
Senate Committee May Modify In
Portant Features of Legislation
Recess Plan Fails.
CHANGES ARE PROBABLE

That the administration banking and
currency bill as passed by the House
does in every particular. uphold the gold
standard even with reference to the re-
demption provision for the proposed issue
of Treasury notes. is the claim reiterated
last night by Representative Carter Glass
in connection with an explanation Of the
various changes that were made in the
note issue section during the considera-
ton OF the bill by his committee.
The original draft of the bill as intro
duced by me on June 26 provided that
the Treasury reserve bank notes should
be redeemed on demand when presented
at the Treasury Department in Washing
ton, said Mr.. Glass, "but that when
presented at any one of the Federal re-
serve banks for redemption IL provided
that they might be charged of by such
bank a,slnst the Treasury balance on its
DOCKS or might be redeemed out of that
banks lawful money funds The same
draft OF the bill provided that the re-
serves to be held In the vaults of the
Federal reserve banks were to be I'm
gold or lawful money This latter pro-
VISION has at no time been changed.
Mr.. Wfngo's Proposal.
On July a." Mr.. Glass continued.
Mr.. Wingo, who has from the very be-
ginning opposed this bill and contended
that II was a bankers bill asserted al
committee meeting that section II. which
ls the Treasury note issue feature, was
discrimination in favor of the banks
and against the government, in that n
MADE the notes redeemable in gold at the
- - IieSsury and IN lawful money at the
Federal reserve banks On the face of
II, the section did
slstent, II not an actual discrimination.
When Mr.. Wingo proposed to strike out
the words lawful money in the clause
covering the redemption of the notes at
the Federal reserve banks, / suggested
that we amend the bill SO as to make The
notes redeemable in gold or gold certifi
Gates at the Treasury or the Federal re-
serve banks. There never was an au-
thorized print Of the bill with that amend
@ nneht IN II, but 1t was published in the
papers at the time.
A few days after the amendment was
written in the bill Mr.. wingo brought
the matter up again, saying that he had
suggested making a change, but that in
thinking 1t over he realized that it might
ne difhcult TO mobilize the gold required
Tor redeeming the notes, as the bill pro-
Vided that the reserves to be carried by
the Federal reserve banks was to be in
gold or lawful money. 1t was then de-
cided to make the redemption Of the
notes in gold or lawful money in keeping
with the other provisions of the bill"
will not the fact that the notes may
be redeemed in lawful money create dis
trust and fail to uphold the gold STAN
dardE Mr.. Glass was asked
or course not" Mr.. Glass replied IF
a Federal reserve bank redeems a note
IN greenbacks. or any lawful money,
that money can be presented at the
United States Treasury and gold de-
manded for il. under the act OF March
H. 1900 II the Treasury hasn't got the
gold the law requires the government to
sell bonds in order to get the gold. If
there was no gold in the Treasury with
"hlch 10 meet such a demand for gold
IN exchange for greenbacks, there also
would be no gold with which to redeem
the treasury notes. There absolutely is
nothing in the bill which prevents any
one from converting into gold the law
tul money which may be used to re-
deem the notes under the provisions ~
the bill
Changes Are Expected.
The note issue section of the pend
ing bill, which is now in the hands of
the Senate Committee on Banking and
currency, as well as other important
FEATURES of the measure. are certain
10 be changed by that committee il
the open hostility of the members, as
expressed at the hearings now in prog
ress, are seriously meant The whole
question of bond issues. note issues,
and currency. together with the
amount of reserves, promises to be
the stone wall which the administra-