New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-21
House Sends Measure to
Conference After a
Sharp Wrangle.
ACCEPTS ONLY TWO
CHANGES BY SENATE
Chairman Glass Declares Some
Amendments Would Bring
Calamity on Country.


tration currency bill was sent TO confer
ence late to-day by the House,
Representative Glass, chairman OF the
Banking and Currency Committee. was
both piqued and pessimistic over the fact
that the Senate had named nine confer
rees on the bill. He said he saw no pros
pect for an immediate agreement and
tabooed plans TO have the House desis-
nate nine conference managers. The
House named as conferrees Representa-
tives Glass, Korbley, Of Indiana, and
Hayes. of California The conference i'm
mediately began.
rs there a chance that this bill will be
reported back to-day asked Mr.. Mann.
in the debate.
"I do not think there will be an imme-
date agreement" said Mr.. Glass. II
won't even promise we will get through
Monday or Tuesday"
Representative Alfalfa Bill Murray.
Of Oklahoma. displeased Mr.. Glass ex-
ceedngly by moving TO accept the Senate
bill.
THE gentleman proposes to concur In
tire Senate amendments" said Mr.. Glass.
bill. have been studying 1t for weeks as
the Senate amended IT, and l don't know
what is in the measure. l do know It
contains things which will bring calamity
on the country If they stay in
Two Amendments Accepted.
Mr.. Murray's motion to concur in all
Senate amendments was rejected-59 10
294 The House, however, adopted a mo-
ton made by Mr. Lever, OF South Caro-
lima. instructng its conferrees to accept
the Senate amendments relating 10 farm
loans and the discount Of agricultural
paper wit ha maturity of not longer than
six months.
In a short but vehement speech Mr..
Glass sought to point out what he consd-
cred the more serious defects of the Sen
ate bill The Virginia member was in a
peppery mood, which was partly attribut-
able to the appointment of nine confer
rees by the upper chamber.
II do not believe that the bill as re-
turned from the Senate would be a work
able law, said Mr.. Glass. 1T contains
some crudities and contradictions which
should be corrected. Take the amend
ment Of the Senate which provides that
the directors OF Glass B of the regional
reserve banks shall not be officials, di-
rectors employees or stockholders of mem
Der banks. And yet further along 1t is
provided that the directors Of Class r
shall be selected from the same list of
electors as directors Of Glass "A list
composed exclusively, as was intended,
of ANIL JInxH- hot Ea
made TO operate?
This House and the Democratic eau
Gus insisted on a definite policy Of con-
stituung these regional reserve banks the
fiscal agents Of the government and re-
quiring that the government funds should
be deposited in these banks. under re
straints insuring a fair distribution of
them TO the various sections OF the coun-
try. Under the Senate amendment that
is altered, and the Secretary Of the Treas
ury is made the sole custodian OF the
funds
Warned by Bankers.
The House decided that We should not
embark on that uncertain and reckless
proposition OF permitting 1900 national
banks to engage in the acceptance bust
ness-that is, in business involving con-
tingent labilities-without one dollar of
reserve behind them as a safeguard
Banker after banker who came before our
committee wqarned US against that sort
OF thing, and Sir Edmund Walker, head
OF the Canadian banking system, testified
that such a thing might involve fright
full consequences to the banking insttu-
tons of this country.
THE reserve section OF the bill has been
so altered that the cash reserves in men,
Der banks required under existing law
amount TO more than both the cash re-
serve and the credit reserve. balances OF
the country. Is tho House willing to APP
prove that? Six months after the passage
of this bill there would be veritab'e
saturnaIia of imitation in the country.
Under the Senate amendment the dis
tribution Of earnings is entirely changed,
so as 10 provide, not a guarantee of bank
deposits, but mere pretense of insuring
deposits, for which purpose the Senate
amendment appropriates the profits or
the government instead OF taxing the
banks themselves, if such a scheme is to
be embarked upon at all. We have COM
blamed for fifty years of the infiexibility
of this currency. Bankers, business men
and currency experts agreed that we
ought TO retire bond-secured currency,
and yet fhis. Senate amendment extends
it's existence unfortunately"
Within an hour after the conferrecs
met serious points Of difference developed.
The House members announced their in
tention OF insisting that the Secretary OF
Agriculture and the Controller Of the Cur
rency be retained as members of the COM
ynittee TO organize the new system and
as members OF the Federal Reserve
Board. The Senate amendment removed
them from both.
on the number of regional banks the
House members agreed to accept the Sen
ate provision that not less than eight be
created. but insisted that the provision
be eliminated fixing the maximum num-
Der at twelve They also announced that
they would insist on the House provision
that the capital stock Of each regional
bank be fixed at per cent OF the capital
OF the national banks in its district. in
stead Of at per cent of the capital and
surplus Of the banks. as provided in the
Senate bill.
Banks Seeking Admission.
With the currency bill In its final stage
in Congress, informal applications from