Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-13
Representative Smith, in Novel
Manner, Tells House of
Bills Weakness.
COLUMN ILLUSTRATES
RESERVE BOARDS POWER
Declares Control Of Banks Will Be
Political, Not Gov
ernmental.

| painted white, with black lettering
was placed squareIy in front of the
| Speakers desk in the House Of Repre-
sentatives today when Representative
| Smith of Minnesota arose to declare
| that the Glass currency reform system
rests entirely too much personal power
upon the members of the federal re-
serve board The columns integral
| parts. from base to capital. were used
/ by Representative Smith in much the
same manner as lecturer upon archi-
| lecture would use similar exhibit to
prove to the members OF Congress that
/ "a more dangerous and unwarranted
method of legislation has never been
| perpetrated-this in face of the fact
| that the country as whole has de-
manded that this legislation should be
non partisan"
Pillar of Seven Disks.
| Mr. Smiths white pillar had seven
disks painted upon it's base to repre-
sent the seven members of the federal
reserve board.
Three Of the disks were brown, rep
resenting the Secretary of the Treas
ury. the Secretary of Agriculture and
the controller of the Treasury. who
WOulO cnan&6 Win eaCn dOm lulSCFdClOu
The other four disks were blue.
Arising from this base. the square
column Of white. represented the sixty
nine powers Of the federal reserve board
| The column supported slab marked
Banking and Currency" which. in turn,
supported Industry. Agriculture. Com
| merce and Capital" all of these being
supported by the seven members of the
federal reserve board at the foot of the
/ column.
Too Much Power With Board.
This was method of showing that too
much power rests with the board.
This bill," said Representative Smith.
by reason of the manner In which the
federal reserve board is appointed, in
| wolves the substitution of political con-
troll for the control by banks. The bill
falls far short OF the ideal government
control.
The great political power which Presi-
dent Jackson saw in the first and Sec
ond national banks of his day was the
power Of mere pygmies when compared
to the power imposed in the federal re-
serve board, and which, by the proposed
bill, is made the prize Of each national
election"
General. Debate Near End.
General debate on the currency bill will
come to a close in the House when that
body adjourns late tonight. and the pro-
visions Of the bill will run the gantlet
of criticism under the five-minute rule
beginning. probably. Monday. A score
OF speeches. for and against, are expect
ed to occupy the time today and tonight
Attacks on the methods of the caucus
and the secrecy with which the democrats
hal m
not only from republicans and progress
sives but from democrats as WELL
Representative Neeley, democratic
member of the committee which wrote
the bill, was one OF the foremost critics
OF the secret methods used In getting the
bill into shape during the debate late
yesterday. Representative Burke OF
Pennsylvania, a republican, was strong
| in his adverse comment of the bill. He
said the proposed reform wound be about
las useful to the country as dollar
| to a dead man.
Hardwick Replies to Attack.
| The republican attack on the method
| by which the democrats prepared the bill
wick Of Georgia.
| "Our people, north. east. south and
west" he said. ARE deplorably extrava-
/ CANT. A.ilS Ii OtAc Sl tuc pTIaCiPcA1 Se@NoSS
Of the high cost Of living today.
"Our people are mortgagipg farms and
homes to buy automobiles. Our people
are trading and overtrading; their credit
| is expanding and expanding. Under this
/ bill that expansion will go on and on;
/ We will have our paper discounted and
rediscounted and double discounted. We
/ will go ahead very we'll for four years
or five years. but finally the day Of sober
ats
\ ture of credit to be built up will not last
/ forever.
/ Mr. Hardwick criticised the provision
of the bill making the federal reserve
notes obligations Of the government.
| He declared that in his opinion the bill
| would establish a gigantic money trust y
The democrats. he said. we're going over
/ to the Roosevelt iuea of .puDlic mo-
/ nopoly" Nevertheless, he said he would
vote for the bill because of Loyalty GO
i the Judgment of his party associates"
Aldrich Plan in Disguise.
A charge that the Glass bill Is none
other than the Aldrich currency plan in
disguise was made in the course of de-
| bate last night by Representative Plat
of New York. Representative Guernsey
of Maine declared that many OF the p O.
| visions OF the bill would prove burdens
| TO the people and possibly drive many
| banks out OF business.
| Representative Hinebaugh, progressive
of Illinois, criticised the lack OF interest
taken by the House In the debate.