The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-27
Representative Glass
Analyses Proposition
for Central Bank.
IDEA REPUDIATED
BY THE PRESIDENT
House Currency Bill. Designed to
Correct Radical Defects of Sys-
tenn Under Which Nation Is
Ruled by Concentrated
Wealth, in Danger of
Being Defeated.
Especial to The rimes-Dispatcl

Especial TO The Times Dispatch.
Washington. October 26.-Ecprcseni-
ativc Carter Glass, Of Virginia, chair
man Or the House Committee on Bank
ing and Currency. to-day gave the cor
respondents OF The Times Dispatch an
analysis of the Nandcriip proposition
TO establish central ba.li which was
presented several days aEa to the Son
ate committee. This is the plan which
the President was said to favor but
which he explicitly rcpudiated and to
discuss which he positively declined Ia
see Mr.. Nanderlip and Mr.. Dawson, Of
the firm Of Morgan and Company Mr..
Glass thinks the plan was devised sim
ply to delay and ultimately defeat cur
rcncy lceislation:
i have somewhere read in Eng
iand-or maybe IL was in Scotland
they used To have an annual fox hunt,
at one stage OF which, with rcynard
hard pressed rcd herring was draw.
across tile trail to divert the pursuit
and give the fox another chance.
To Correct Defects.
or course what Is popularity styled
the money power In this county is not
foxy. nor would anybody dream OF sus-
pecting Mr. Vanderlip of being in the
red herring business. Yet II happens
TO be fact that the House currency
bill is designed To correct the radical
defects OF Il system under whichscon-
centrated wealth has ruled the nation:
and, likewise. IL happens to be n fact
that the Nanderlip scheme is project
ed at the eleventh hour Of congression-
al consideration with the absolute Ger
tainty Of indefinite postponcment of
currency legislation should the scheme
be given serious attention. Ii surely
/ does remind me of the fox chase and
/ the red herring. This opinion seems
To In ciD lar nj !, -,
press To-day one of the New York
papers, opposed to the House bill. has
this significant editorial expression:
1T is reassuriug to reflect that IL
4 the Injection OF this project into the
controversy should result In putting
! the whole question over until tho reg
ular session of Congress no harm Will
conc.
7 so there you are. If Mr.. Vanderlips
scheme was not actually designed to
delay AND Illustrate currency leGisla-
( tion. il will ii given consideration, have
that inevitable effect.
Miraculous Conversion.
But this aside. the Vanderlip prop
osition is as amazing as IT is inter
estinE. The miraculous conversion or
saul of Tarsus loses Its historic
uniqueness coEtrasted with the CONVEX
sion of Mr. Nanderlip; while the re-
Elected glory which came TO CANA
/ liel as the tutor of the Apostle OF the
Gentiles isn't TO be compared to that
which must come to the Republican
Senator from Kansas as the financial
mentor OF tho distinguished president
OF the National City Bank.
Just three months ago. on July "a,
MIR. Nandcrl!p wrote me Il letter, as
chairman OF the Banking and Currency
Committee Of the House. voicinG the
protest of himself and other bankers
against certain provisions of the House
y n. ~ H.
forgotten with what Vehcmence he as
sailed that feature OF the measure
which involves government control. He
declared the principle TO be practically
jineXpedient and fundamentally wrong.
| The objection said Mr. Vanderlip, is
not to the powers granted TO the Fed
| eral Reserve Board. but 10 the hands
In which they are placed Asserting
! that both financial and political his
| tory furnish ample illustration OF the
danger, tho ineffectivencss. the made
quacy Of politically appointed boards
Mr.. Vanderiip went 10 the extreme Of
| saying:
| "'If such a board az is proposed were
| formed by appointing the seven leading
| bankers of the United StateS-who-
| ever they may be-and these men be
| came disassociated from the daily con-
| duct of actual affairs and sat In Wash
| inBton, directing at arms length the
| operation OF the several reserve banks.
| they would very rapidly lose tho power
| to direct wisely. II seems to me thac
tho only proper method Of control
must be through Il board composed OF
practical bankers in direct touch with
| current business, who are selected for
| short terms by the member banks
Fling Consistency TO Winds.
I'm direct contravcntion of this po-
sition, Mr. Vandcrlip and his Wall
! St aet associates come here ut the last
| hour ninging consistency TO the winds
| proposing politically-appointed
board. not one member OF which is to
| be selected by the stockholding banks,
| but all by the President of the United
| States. Mr.. Vandcrlip in July object
ed to the long term of seven years pro
| vidcd by the House bill; but now in
October he would stretch out '..c term
TO fourteen years under his central
bank bill. If the board provided by
the House bill. sitting ut arms length
in Washington would in seven years
lose the power to direct wisely. what
would happen in tho case of Mr.. Van
derlips fourteen years board?
Il note that Mr.. Vanderlip, in his
testimony before the Senate commit
tee. differentiated his bill from the
House bill In several important fea-
lures, among them: uniform, nation
VIDE discount rate, instead or regional
discount rate Why, three months ago
this same Mr.. Vanderlip, in his letter
TO me. highly commended the House
, bill for it's superiority to the Aldrich
scheme IN the very particular In which
he now condemns tho House bill In
contrast with his own plan. again
quote from his letter or July "a:
I'm one way the system OF regional
reserve banks has an advantage over
the National Reserve Association pro-
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