Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-04
TIGHT FOR DELAY
ON CURRENCY BILL
Senator Weeks Resolution
Postpones Action Until
Next December.
COMES UP FOR A VOTE
IN SENATE TOMORROW
Administration Leaders Working
Desperately to Uphold Immediate
Action Program.

i Active opposition to the administra-
lions plan for immediate currency legis-
lat1on took form in the Senate today.
senator Weeks Of Massachusetts, re-
publican. and himself banker, offered
resolution directing the committee on
banking and currency to report cur
rency bill December 2, after full hear
| ings.
In the committee on banking and cur
rency Senator Reed Of Missouri said he
did not want to discuss the House bill
at tnls time; he wanted information first
ana then would look at the House bill.
Inc Weeks resolution went over until
tomorrow. when 1t will como up for
consideration In the Senate and bring
TO acute issue the question of immedi-
ate currency legislation.
Administrator Handicap.
The administration leaders are work
ing vigorously to align their forces in
support OF the Presidents plan for ac-
ton at this session. The knowledge,
| however, that there is strong DISPOSE
ton among democrats in the committee
itself as well as on the floor in favor
OF postponement is serious handicap
to their efforts.
1
resolution. said that tomorrow he
would seek to show that no emergency
| exists in the financial situation Of the
| country Warranting undue haste in the
passage or a bill now He declared this
would be shown by the government
statements of bank reserves and circu-
lation.
| He pointed out that the Aldrich- vree-
be in effect. He said it would be i'm
possible to pass bill under sixty days.
| at best.
He suggested that next December the
Senate will be idle. waiting for the
House to send over the appropriation
bills. and that 1t could act with the
knowledge obtained by the committee
in hearings during the interim.
Opposes Glass; Owen Plan.
! Festus J. Wade of the Mercantile Trust
Company of st. Louis, one Of the repre-
sentatives Of the Chicago conference Of
bankers, told the Senate banking COM
| mittee today that the administration
currency bill would put the whole burden
Of organization on the Commercial
banks" of the country.
1.-The national banks are simply the
| commercial banks moving the merchan-
| disc and the commerce OF the nation"
he said. This bill. in its principles, ig
nores the great banking strength that
has really developed the country-the
state banks and trust companies that
| have financed building. land development,
j farming and internal improvements
| Inducements necessary to draw in the
state and national banks had apparently
been lost sight of. he thought.
rency and the handling of the bank re
serves should be divided and not joined
as In the new oill
Would Consider Credit.
at would be fatal economic mistake
for the government to issue the cur
rency Of the nation" he said. Because
| 1t would put the government in debt
just that much more than Is necessary"
He declared the bankers appeared not
as banners but as public spirited citizens
in urging the change.
| 1--WE say: Don't put the credit Of the
| government behind this great issue Of
notes. The time may easily come when
| the nations credit will need all the
strength 1t can command for emergen-
cies."
The Senate committee asked Mr.. Wade
| to outline his ideas Of q new federal
| banking system. He said central bank
with branches in the large cities would
be the nucleus Of any ideal system. in
| his opinion.
! The power of note issue should be left
to the banks. he said. under control OF the
government, the banks to have represent
alton on the federal board of control.
These notes should be obligations Of the
banks and not of the government. said
| Mr.. Wade; they should be redeemable In
| gold with a so per cent gold reserve.
The federal reserve board should have
/ the power to increase or diminish this
percentage OF reserve in time OF financial
distress.
Retirement Of Bonds.
The law should then provide that ma
tional and state banks and trust COM
panies could do business under the sys-
tenn provided they became members Of
the central bank. Mr.. Wade's plan pro-
vided next for the retirement of the pres
ent government bond-secured national
bank currency and the refunding Of the
bonds.
He urged that the central bank should
have power to collect transient hems." "
checks and drafts; to handle all govern
ment money and to act as fiscal agent for
) the government.
II that were done, you would create a
; homogeneous banking organization that
would bring in 1h,0OO or more banks into
the great banking system Of the world.
he said.
Mr.. Wade said he did not expect the
, that he now favored building up as per-
feet a system as possible on small
, number of regional reserve banks, pref
) erably five.
Not Worried Over Credits.
, Mr.. Wade declared he did not believe
the proposed new currency plan would
, result either in a great expansion of
credits. as Charles 9. Dawes of Chicago
had predicted, or In violent contrac-
. ton OF credit. such ~ James B. Forgan
} of Chicago suggested before the recent
Chicago conference Of bankers.
, IF the system were established with
) five reserve banks, I don't believe il
would have the slightest effect on the
, volume Of credits" said Mr. Wade.
) Senator Weeks expressed the opinion
that Congress would soon enact some form
OF q faPm-loan bank system, to provide
, | more adequately for loans on farm lands
. and real estate business than national
banks are now permitted to do.
The proposal to let national banks loan
. money on real estate. as trust COM