The Washington times., 1913-11-02
CURRENCY BILL HELD
BANKERS MEASURE
Senate Committee Members
Join Public Critics in Hot
Criticism.

The currency bill situation in the Sen
aIe Banking Committee. has reached a
Point where the Administration measure
IS being assailed as bankers bill, pro-
L,ding for bankers bank system to be
dominated by the banks
Close students of the bill before this
nave criticised the bill as a bankers
measure which meant no relief to the
public. Now such criticisms are break
iEg out in the committee. Unless the
bn Is radically changed, much of such
criticism will be heard from this time
OF, not alone in the committee, but in
The Senate.
The fact that under the Admin 'stra-
lion bill the real power of control is
designed to rest in the boards of direc-
tors OF the regional reserve banks, and
tlat by this bill, as t passed the House.
these regional directorates is Just be-
ginning to draw fire from those Sena-
tors who do not believe that the White
House measure is what it purports to be,
and do not think it is going to give the
public any real relief. Those who crit
Csc the bill along these lines point out
that, while nominally the control of
the system rests in the Federal reserve
board at the head, government body.
there viii be, in actual practice. few
instances in which the central board
will venture to override the wishes of
the regional boards because the region
al board can set up the claim that they
are on the ground familiar with condf-
tons in their localities.
Bristow Emphatic in Opposition.
The criticisms, which threaten to be-
coIce numerous, of the extent of bank |
-ers' control of the Administration bill |
broke out in the Senate committee |
when Senator owen, chairman, ex-
pressed himself fayorably to public |
1.t
TEN, but wanted the provisions of the !
Dill as it passed the House with re-
spect to control left unchanged. Sena- |
tor Hollis another Administration Sem
atoI, voiced the same idea This led !
20 the inference the White House had |
ndicated to these Senators that it |
would be willing to accept such plan. |
&Thereupon hot fire Of dissenting |
opinion was poured on tire proposition, 1
so far as it related TO control after |
the method of the Administration or |
Glaas plan. |
Senator Bristow, Senator Reed, and |
others pointed out that this meant pub ,
lie ownership with private control. Sem |
ator Bristow was emphatic in saying |
ne would never consent to such a |
Dlar. He pointed out that under the |
House bill the banks would control six |
Of ne nine directors OF each regional |
oanl;: that these directorates would be |
OF the proposed regional system, and |
much more potent than the Federal re- |
serve board; and that unless the re- |
gional directorateS were dominated by /
the public the bankers would actually |
run he system. Senator Bristow made |
It plain he wanted no form of disguised |
banking control, but genuine public
cont, oil.
report to Be Further Delayed.
No further serious talk is heard of
the committee making a report by No
veInber 10. 1t is considered doubtful
now IL report reaches the Senate by1
November 15. The talk of getting the
bill passed in special session is still kept
up in Administration quarters, but in
Senate circles there is no real eNpecta-
ton that q bill can be passed before
the regular session.
That there will be public ownership |
of whatever system is finally settled I
on. with the most complete public con-
troll, now seems certain.
Yesterday the committee discussed at
great length the problem Of ho% 10
capitalize the reserve system. A plan
of Senator Hitchcock was voted down,
: to 1. This plan provided that the
sIo0.oGl,0o0 of capital stock of the re-
yionaI banks should be held in common
by the Federal reserve board. He felt
that this would make it possible to give
help 20 any region that needed it with
ont drawing support from another re-
gion. Senator OGorman's suggestions
were, first, that the capital of each re
aioEal bank be 10 per cent OF the capital
of all the banks in that region, half to
- tai.en by the banks and half by the
public. and, as an alternative, that all
the stock be offered to the public. the
banks to underwrite any amount not so
No action was taken on
eftheg. of the O'Gorman proposals.
Senator O'Gorman favored leaving the
regional boards in control of the bank