The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-08-01
NATIONAL BANKS
TO GET Millions

CONTINUED FROM PAGE ONE.
rotary McAdoo Is relying on this section
is indicated by the statement which he
issued back in April, when he announced
that he would accept State and munich
| pal bonds as part security for govern
ment deposits. At that time he an
rounced that he would require national
banks to put up 20 per cent of the Sc
curity in United States bonds and the re-
| naming 30 per cent in United States
bonds or State or municipal securities.
| Secretary McAdoo obviously Is apply.
ing to the present situation one of the
fundamental principles OF the PROPOSED
new currency law. which contemplates
| the use of first-class commercial paper
as the basis for circulation
| There are $4,000 600 of these . per cent
| bonds still available to be deposited for
national bank circulation. II was point
ed out that banks which want to avail
| themselves of the new government de-
posts, but which have less than 20 per
| cent Of their authorized circulation. will
| therefore be Obliged to avail themselves
order to qualify.
Crop Moving strinsency.
Mr.. McAdoo, when questioned in regard
to his announcement, denied II was de-
| signed to meet any immediate emergency.
1t has been obvious all along that the
Wilson administration intended to take
eevry step possible against any embar-
easements that might grow out OF a
financial stringenCy during the CROP
moving period. Mr.. McAdoo already has
announced that he would. IL necessary.
avail himself OF his right to issue $780,
10000 q currency under the Aldrich-
VrCeland act.
Secretary McAdoo's charge that Amer
lean bankers have conspired to defeat
the Standardization banking and cur
rency bill by depressing the price OF
government per cent bonds will be
made the subject OF an inquiry by a
House committee IL the House passes a
resolution that will be offered tomorrow
by Representative Medley OF Kansas
Mr.. Medley was a member OF the Pujo
Money Trust committee that operated
in the last Congress, and believes II to
he the duty OF Congress to pass the
strict regulation measure governing ma
tional banks and other financial insti-
buttons recommended in the report of
that committee to the House.
The Medley resolution. which will be
referred to the Committee on Rules Of
which Representative Henry OF Texas,
the radical leader. is chairman. directs
tina the Banking and Currency Commit
tee shall make thorough inquiry to de-
termine the facts. Mr.. Henry is in SYM
pathy with the purpose OF the resolu-
ton. and will make every effort to have
it reported. Mr.. Medley will ask the
Rules Committee to give him a hearing
on the resolution.
Amendment May Go Out.
There was another interesting de-
velopment in committees yesterday.
Objection was made to the final adop-
ton of an amendment tentatively
passed last week prohibiting interlock-
ing directorates in the new banking
system. This amendment. offered by
Representative Wingo of Arkansas.
was adopted last week by a vote of
to 5. Chairman Glass dissenting.
corporate the amendment in the bill
a point of order was made against ii.
AS the committee is proceeding in
secret session it could not be learned
upon what ground the objection was
raised or who made the point OF order.
The committee adjourned at this point.
when the committee resumes its ses-
sion today Chairman Glass will rule
on the point of order. He will look up
the preCedentS and confer with par
liamentary experts in reaching 4 con-
clusion. II the amendment Is defeat
ed in committee 1t is the purpose of
Mr.. Wingo and some Of his associates
to appeal to the caucus.
The committee is making rapid prog
ress, and doubtless will conclude its ses-
sions in a day or So. Then the admins
tration forces and the opposition will
make preparations for the presentation
of their respective sides Of the store to
the caucus. 1t is known. Of course, that
majority of the committee Democrats
favor the administration bill The minor
ity will not exceed five, and there Is a
probability that only four will oppose
the measure in caucus.
Representative Eagle Of Texas, a MEM
Der of the committee, issued a statement
in which he criticised the administration
bill. He said he could not give the meas
ure his support. Mr.. Eagle declared the
bill to be fundamentally bad.
TiIImnn Issues Statement.
Senator Tillman of South Carolina last
night gave out the following statement:
81 sincerely hope that the Banking and
Currency Committee of the House of
Representatives can work out some prac-
ticable scheme that will inspire the ron-
fidence of the business people of the
country for lending money to banks at
3 per cent on satisfactory collateral.
Mr.. McAdoo is well informed as to
the business conditions in the United