Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-06-17

its lair''-the cry now heard in sew
eral quarters in the House of R0Eye-
sentatives-Was reuttered in an eX-
planatory way by Representative
Medley of Kansas in an interview
with a Star reporter.
Representative Medley, now mem
Der Of the banking and currency COM
mttee was a member of the old spe-
cial committee on inquiry into the So
sentative Henry Of Texas, earnestly
believes in the imperative necessity
of further inquiry into the ramifica-
lions of the money trust. and believes
that another committee should be i'm
mediateIy appointed to continue the
money trust investigation and bring
out details Of abuses that still exist.
Secretary McAdoo rang the bell when
he recently declared the issuance of
money to be a governmental function.
said Mr.. Medley. land j hope the banking
and currency committee will adopt the
suggestion and present to Congress plan
responsive to the demands of the COM
mercial interests Of the country! vet so
safeguarded that the very plan itself may
not be used to further the concentration
of money and the control of credits.
Alleges Juggling in Finance.
NO student of finance will doubt the
advisability of financial reform at the
earliest practicable date, not only to meet
present-day needs. but to care for any
emergency that may arise, but we should
keep constantly in mind the disclosures
of the recent money trust investigation
and push that work to its completion.
This investigation disclosed such jug
Cling in high finance as to astound the
country, and If other abuses exist. and
they do exist. We should know what they
are and proceed to correct them as a
part of the plan of general currency re-
form.
The last republican Senate. by its in
action, prevented the completion of this
work. and this democratic Congress
should amend the law by giving a COM
mittee of either house of Congress VlSltO-
rial and inquisitorial powers and author
ize another committee having both the
disposition and the courage to go to the
bottom of the proposition, and that at
once
Newlands Introduces Resolution.
Declaring himself in favor of immediate
banking reform legislation. Senator New
lands of Nevada today introduced in the
Senate a resolution which would put the
Senate on record as favoring the estab-
lishment of reserve associations in each
state. with the national and state banks
both as members.
The state banks to be members. how
ever. must conform with the require
ments of the national banking act re-
garding capital and reserves, and must
be examined as the national banks are
In regard to his proposition for bank
ing and currency reform, Senator New
lands said:
Il believe that immediate action should
he had regarding banking laws. l think,
however, that instead of organizing fif-
teen regional reserve associations, COM
posed of both national and state banks
within certain banking zones. it would
be better to organize a reserve associa-
ton in each state. composed of the
banks both national and state. within
such state. thus accommodating our eco
nomic to our political divisions. Pro-
visions can be made for some of the
smaller states by allowing the banks in
such states to join the associations of
adjoining larger states until they reach
certain population.