Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-06-30
SENATOR OWEN EXPLAINS
TERMS Of CURRENCY BILL
Predicts Proposed Law Will
Improve Country's Finan-
ciaI Condition.

statement explaining the terms of the
administration currency bill has been Is
sued by Senator owen, chairman OF the
banking and currency committee. Sena-
tor owen predicts that the proposed law
! will be effective in improving financial
conditions. and said tina. the chief end
i'll view is to make bank reserves more
! mobile and to provide an elastic cur
vency. He added:
Some o. the larger interests Of the
country having set their hsart UPON the
passage of the Aldrich bill, and having
expended large effort in educating the
country in favor of the Aldricil plan.
have been disconnected in two very i'm
portant particulars: First, the Aldrich
bill gave control OF the proposed system
to the banks of the country; antk second
ly. authorized the banks to issue the
currency to the country under this sys-
tenn as bank currency.
We have been unable to approve these
principles of the Aldrich bill. believing
that the federal reserve banks. having
been established purely for the purpose
of stabliZihg the commercial and financial
operations of the PEOPLE of the United
States, should be governed exclusively by
the people of the United States. and in
establishing the federal reserve board to
not think 1t proper to permit private per-
sons to have representation upon such
| governing board"
Compared With I. C. C.
I'VE think It no more reasonable to
grant this demand to the bankers than
it would be to authorize the railroads to
have representation and exercise part
of the governing power of the interstate
commerce commission, which is charged
with the duty of regulating the railroads.
1t would. perhaps. be but little different
If tine beef packers should demand rep
resentation in administering the pure food
act and regulating their own conduct.
1T has been suggested that some Of the
largest national banks might go out of
this system and become state banks be-
cause of their displeasure at not having
representation on the governing federal
reserve board and because they were not
satisfied to have their correspondent
banks put part of their reserves in the
federal system, and for the further rea-
son that they were d!spleased at the
United States issuing public currency and
in the bill not giving the right to the
reserve banks to issue the currency of
the country.
Thinks Banks Will Rejoice.
We have taken infinite palms to ascer-
tain the grounds of these objections and
feel justified in saying that there is no
| reason to apprehend that any national
| bank will go out of the system because
| Of the provisions of this bill, but that
| they will generally rejoice at the oppor-
tunity afforded them of having more
stable condition In the financial and COM
mercial world"
| The House committee on currency will
begin work on the administration bill
early this week The measure will be
! taken up in detail and efforts made to
secure an agreement as to its provisions,
| as 1t may be reported back to the House
| for debate by July IA. An agreement was
made last week that no general business
would be transacted in the House before
that time; and leaders hope the currency
measure can be taken up and passed be-
| fore the Senate is through with the tariff
| bill.