New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-25
CHANGES LOOKED FOR
IN CURRENCY MEASURE
Banknote Retirement and Two
Per Cent Bond Refunding Ex-
peCted To Be Restored.
WILL BE PUT BACK LATER
House Committee Democrats
Agree to Favor Early Action,
but Are Not Bound to
Support Entire Bill.

Washington, June 24.-While the ad-
ministrations currency bill VIII be IN
PRODUCED i'm Senate and House substan-
tiallv in the form recently made pubic
by Representative Glass. II is under
stood that the provision for the retire
ment of national bank notes and the re-
funding Of per cent government bonds
with a per cent issue is to be put back
into the measure later, with the con-
sent Of the administration. This pro-
vision was in the bill before the final
conferences at the White House, and
was taken out because of the opposition
of Secretary Bryan and others.
Much Of the criticism against the
measure among members Of both houses
has been directed at the proposal TO
create a new kind Of paper currency
without Withdrawing the national bank
notes, or providing against a deprecia-
ton IN value Of the per cent govern
ment bonds that secure these notes. 1t
is said that this objection has become
so strong as 10 convince administration
leaders that the provision must be re-
stored II the bill is 70 pass.
Chairman Glass and Democratic mem
bers Of the House Currency Committee
agreed to-day to undertake individually
10 Sound out" impartial bankers. bust
ness men and students Of financial af-
fairs TO ascertain how the provisions OF
the Glass bill are regarded by that part
of the public which will be most direct
~ affected by monetary changes.
Senators to Consult Wilson.
Members Of the Senate Committee on
Banking and Currency. Democrats and
Republicans, will meet President Wilson
at the White House tomorrow night for
their first discussion of the new meas
ure with him.
The majority members of the House
committee agreed that they would favor
currency reform at this session. in line
with the wish of the President. but il
was explained that this decision did not
carry with il acquiescence in the pro-
visions OF the bill as drawn by Chair
man Glass. Senator owen and the Sec
rotary Of the Treasury.
Representative Lindbergh, a Progress
sive member of the committee. attacked
the bill in statement in which he said:
If enacted in it's present form the
bill would deal with the banking inter
ests only. The bill has no direct rela-
ton 10 the people except in the creation
Of federal reserve board. BY the terms
of the bill this board would have the
power to loan upon certain conditions
s500. 900. 900 of currency created by the
government These loans would be made
to the federal reserve banks at a rate
of interest to be fixed by the board. The
banks becoming members of the reserve
associations would be able to borrow
the money,
Banks Would Control Distribution.
NO provision is made as to the rates
of interest that the banks would pay,
and what the banks would do with the
money when obtained has not been pro-
vided for. The bill simply proposes to
add 70 the currency of the country a
volume Of money. The government
would control the printing and engrav-
ing'of this money and the banks would
control its distribution"
The first problem to be solved by the
Banking and Currency Committee is the
far Of the Lindbergh resolution provid-
in& for publi1ity of committee meetings
while the currency bill is under consid-
Grafton. The Buckley subcommittee has
ordered a favorable report on the pub
licity resolution. and prospects are that
the open door" policy will be adopted.