Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1913-07-04
Explains The Terms OF The Cur
renCy Bill.

A statement explaining the terms of the
administration currency bill has been is
sued by Senator Owen. chairman of the
banking and currency committee. Senator
Owen predicts that the proposed law will
be effective in improving financial condi-
TONS and said that the chief end in view
is to make bank reserves more mobile and
to provide an elastic currency. He added /:
Some of the larger interests of the
country having set their heart upon the
passage of the Adrich bill. and having
expended large effort in educating the
country in favor of the Aldrich plan, have
been discontinued in two very important
particulars First, the Aldrich bill gave
control of the proposed system to the banks
of the country; and, secondly, authorized
the banks to issue the currency to the
country under this system as bank currency.
ave have been unable to approve these
principles of the Aldrich bill, believing
that the federal reserve banks, having been
established purely for the purpose of sta
blizing the commercial and financial oper-
atoms Of the people Of the United States,
should be governed exclusively by the
people Of the United States, and in estab-
fishing the federal reserve board to exer-
else this governing function we do not
think it proper to permit private persons
TO have representation upon such govern
ing board.
I'VE think it no more reasonable to
grant this demand to the bankers than it
would be to authorize the railroads to have
representation and exercise a part of the
governing power Of the interstate COM
merce commission, which is charged with
the duty of regulating the railroads. 1t
would, perhaps. be but little different il
the beef packers should demand represen-
tation in administering the pure food act
and regulating their own conduct.
ut has been suggested that some Of the
largest national banks might 90 out OF this
system and become State banks, because
of their displeasure at not having represen-
tation on the governing federal reserve
board and because they were not satisfied
to have their correspondent banks put
part Of their reserves in the federal system
and for the further reason that they were
displeased at the United States issuing
public currency and in the bill not giving
the right to the reserve banks to issue the
currency Of the country.
I'VE have taken infinite pains to ascer-
tain the grounds Of these objections and
feel justified in saying that there is no
reason to apprehend that any national bank
will 60 out Of the system because Of the
provisions Of this bill, but that they will
generally rejoice at the opportunity afforded
them Of having more stable condition in
the financial and commercial world"
The House committee on currency began
work on the administration bill early this
week The measure was taken up in de-
tail and efforts made to secure an agree-
ment as to its provisions, as IL may be re-
ported back TO the House for debate by
July Ia. An agreement was made last
week that no general business would be
transacted in the House before that time
and leaders hope the currency measure
can be taken up and passed before the
Senate Is through with the tariff bill