The Washington times., 1913-07-11
ENDS INVESTIGATION
OF CURRENCY BILL
Committee of U. S. Chamber of
Commerce Makes Certain
Objections to Measure.

Of the Chamber of Commerce Of the
United States today concluded it's in
vestig cation Of the Administration cur
rency hill and wired It's report, contain
ing upward of s,eeo words. to the board
of directors OF the national chamber.
who are in session at San Francisco.
The report will be passed on by the
directors Monday, and then will be sub
mitted to a referendum vote of the con-
stituent bodies OF the organization.
While the committee uphoids, in most
insta noes. the general character Of the
currency bill, IT'S objections are some
wnat more numerous than had been ex-
pected afler the report given out At the
close of yesterday mornings commit
tee meeting.
affecting the control and management,
the creation Of the reserve banking sys-
tesa. note issues and discounts. and mis-
cellaneous.
Suggests Bossd of Mine.
As To the control and management Of
the currency, the committee valves dis
pate with the Administration that it
should be Governmental. but suggests
that the bill should provide for board
of nine instead of seven, and that the
TWO added men should be elected by the
original seven. L he reason for this suS-
sesrion Is tnat the bill now provides
that at least one man on the committees
should have had banking experience
The committee holds there should De
q greater number than one with prac-
tical ex,,erieRce and suggests The ao-
aition OF the other two men as pos.
sible means Of procuring the DESIRED
men, and yet have the poaro striSS
under Government control. 1t Is fur-
iner suggested that the question OF
compensation Of officers should be feft
v Ith the board.
More radical suggestions are otiereo
banking system. IL Is pointed out that
The system should be operated along q
definite and wei defined line, and that
for thus reason Federal reserve coun-
cit, elected by the boards OF the several
heIera reserve banks should be created
10 serve IN an advisory capacity
Deplores Limitation of Issue.
Ii is also suggested that '.in many
important cities, naturally qualified by
geogIapnicsI location. centralized trans
pOr,ation facilities and common trade
interests, there is yet An insufficient
aggregate OF banking capital to permit
Tue establishment On FEDERAL reserve
bank Tine committee believes this
may leau to confusion and possibly
uissstrvus results or sudden shiItins
oI cl,dlu balances and reserves which
s0GAu DLCul WIN Tie csidpIlSIiinSht VI
an arbitrary increase In the number of
reserve clues al any one time The
committee aIso beneves IL Is important
that the clearing principe outlined in
lne bill be gradui..ly and judiciousiy de-
yeioped, and. nnRiiy. tnaI In the crea-
llon VI the r ede. al reserve system, the
begtR;Iing should be made with the
present central reserve cities. In the
meantime, wants OF other cities should
be cared for By branches.
In nhaS nf fhR Mill
Gearing res and discounts.
The com les the classification
of ''scce psances authorized by this act"
in the lists with lawful money, nation
al bank notes, Federal reserve notes,
etc. is an oversight. II urges that this
be corrected, ana also that pfonisseIy
notes secured by bonds should not be
oai the same plane as commercial paper
as basis for loans and currency issue.
The Committee ieels that the linllla-
tioHof the issHe of reserve notes TO
500 o1.eoo defeats the main purpose of
the eBt-elasticfty, because n a Coga-
parattvely few years that amount of !
notes will have been used UP in the
growing commerce of the country.
.. Should Guarantee Notes.
The only intimatfon in the report (
that the committee Is not in sympathy |
with the ADMINISTRATORS most fnl- |
peftapt and basic ideas. Is when 1t lays
the attitude OF the Administration is Tn
doubtedly toward almost exclusive Gov |
ernmenf control and that this attitude |
IL likely to be misunderstood because |
of our historic experiences with con- |
unenial currency and greenbacks, and |
future administrations may have a dif- !
fereut conception OF the principle in !
yolyed.'
The committee urges that no interest
be charged on notes supplied to Federal |
reserve banks. and that n should be |
made unlawful for any Federal reserve [
bank to pay out any notes but its own. !
Federal reserve banks. the report says, |
shotid mutually guarantee notes issued /
on their behalf by the Federal reserve
board. |
Under miscellaneous headings. nu-
meroes suggestions are made. the most I
important of which Is that the b:ll !
authorize each Federal reserve bank !
to make deposits In and discounts tor
any other reaeve bank: that the !
clause which provides that the license |
Of the bank expire At the end Of
twenty years be changed To make II |
provide for the automatic continuance /
of the established banking system unttl |
superseded by new legislation. and that
instead of the surplus going at once 10
the Government. the first Surplus |
should 60 to a sinking fund, for the 1