New-York tribune., 1913-10-10
HILL CALLS CURRENCY
MEASURE SOC|AL|ST|C
Tells American Bankers ASSo-
citation Its Enactment Would
Cause Depression.
CRITICISES RESERVE BOARD
Chairman of Agricultural Com
mittee Predicts Dollar a
Pound Steak Because OF
Cattle Decrease.

Boston. Oct 9.JThe American Bankers
Association closed its thirty-ninth annua!
convention here to-day.
Further adverse criticism of the pending
administration plan of currency and BANK
ing reform developed when James J. HILL
of st. Paul, speaking as friend OF agrl-
cultural development, called the bill 100
soclalistic to suit most Americans ana
predicted disturbance, monetary CRISIS
and business depression" from its enact
ment.
The convention settled a close contest
for the honor Of holding the next conven-
tion by deciding to go TO Richmond va
Delegates from Atlanta had made an eH-
tensive campaign to bring the convention
to their city. and Atlantic City and salt
Lake city also had some supporters
The choice OF the nominating commit
tee for new officers was accepted by the
convention, and Arthur Reynolds, Of Des
Moines. first Wce-president. was elevated
to the presidency. W. A. Law. of Phila-
delphia, succeeded to the first vice-presi-
dency without contest. the name OF James
X. Lynch. Of San Francisco. who had
been mentioned for the place, having been
Withdrawn.
With their opposition toward the pend
ing currency legislation finally registered
yesterday, many Of tho delegates showed
more interest to-day in the progress OF
the worlds series baseball game In New
York than in the convention business,
much OF which was OF a routine nature.
The bankers gave over much OF their
time to-day TO consideration Of addresses
dealing with the movement for closer re-
lations between the financial and agri-
cultural interests of the country. II was
under the head Of Agriculture in the
United States" that Mr. I'M spoke. and.
referring 10 the currency bill, said:
zone serious defect is that the bill VIII
not and cannot do what on its face 1t
proposes to do. II processes 10 aim at
a comprehensive reform Of currency and
banking by establishing n logical and per
maucnt system We have never had that
since this government was founded. We
will not have II II this BIN should be-
come law.
1T does not simplify the currency. II
does nothing with the grcenhacks; II
leaves the silver certificates where they
are. II proposes 10 retire the outstanding
national bank notes only in the course of
time our currency will be Just as con-
fused and unsclcntihc az before.
Another failure in frauKncss a least
is the rcpud.ation Of the central bank
idea IN name and the acceptance OF II IN
fact The proposed national and local
reserve associations are merely variations
OF the principle Of n central national bank
with local branches
"i am not c0ut,udiug that the central
bank principle IS either desirable or un-
desirable do think that It's rejection IN
form and adoption In substance Is as
little promising a the proposal 10 sim
pllfy our currency system by adding a
new element 10 its already heterogeneous
mass.
There arc practical working weak
ncsscs even more serious. First among
these Is the projected political control OF
the currency and banking Of the country.
Tht establishment OF "A federal reserve
board. vesting control OF our banking.
credit and note issues in men chosen nee
essarily with some reference 10 political
considerations. and at least partly sub
servieut 10 party demands, Is proposi-
ton that sets reason and all our expert
ence at defiance.
Naturally this board being a political
instead OF a financial body by the law Of
its constitution, It's seat is placed IN
Washington The objection TO the mental
atmosphere Of the capital Is matched by
the physical objection OF placing the most
important collection of gold In the world
at the mercy of a foreign navy. 4 glance
over the world to-day does not tend TO
reassure anybody who wishes to believe
In an increasing pacific disposition among
men or nations.
80 far as one can see. most results
Of real value TO be accomplished by the
bill under consideration might equally
well pe obtained under existing law pro
viding for the issue Of emergency circu-
lation But one Of its least eXcusable de-
fects is its exclusion from the approved
securities for discounted notes or invest
mcntS Of those which are actually most
desirable and safest of all. Government
bonds, state bonds, bonds Of cities and
counties are, in different capacities, rec
ognized as good. safe investments or col
lateral. \ first class railroad bond is not
The discrimination, like the proposed sys-
TEN Of banking control, is purely political
The bill I'm It's present form Is 100
socialistic TO suit the temper Of the body
of our people. The plan differs essentially
but little from the direct assumption by
the government of complete ownership
and control of the banking business"