The Washington herald., 1913-09-02
HIT HARD BY THE
ADMINISTRATION
FROM PAGE ONE.

ings, this opportunity was Immediately
afforded them by telegraph, and the
hearings set for o'clock Tuesday, Sep
tember 2.
"I deem it my duty to advise you that
you are being misled by an atificial
propaganda, conducted in behalf Of pri-
vate interests, which does not hesitate
to convey to the country the false sug-
gestion that the administration is pro-
ceeding without adequate knowledge or
| without giving a hearing to the bankers
of the country.
Compliment for Bankers.
THE rank and file of the bankers of
the country constitute one of the great
est, most important, and most valuable
parts of our national commercial ma
chinery. They have been of great value
in promoting every kind of enterprise
and one of the most useful features of
the proposed public utility banks-the So
called Federal reserve banks-will be to
give stability, peace of mind, and
greater opportunity to the bankers of the
country to render patriotic service.
1T is not surprising that a few men,
having an enormous control of credits of
the country, should oppose surrendering to
the United States in any degree the vast
power which they have heretofore exer-
cised. enabling them to control credits,
to bull and bear the market, and to enrich
or impoverish other men,
The inquiry sent out by a New York
newspaper TO which Chairman Owen has
taken serious exception, read, in part, as
follows:
"Co-operation appears to be lacking be-
tween the trainers of the administration
currency bill and the bankers of the
country. Do you feel that the best in
forests nf the hmSinRSG nf he
try would be served by a free exchange
of opinions between the trainers of the
bill and representative bankers?'
Chairman owen said that when this in
quiry was published the Banking and Cur
rency Committee already had invited the
bankers to appear. and that they had had
four previous hearings before the trainers
of the bill
Tells of Investigat tions.
Senator Owen reviewed the sources of
information which the men drawing the
currency measure have had. He men,
tions the voluminOus discussions that fol-
lowed the 1907 panic. the investigation
of the National Monetary Commission
and the elaborate hearings held last
winter by the House committee. Among
the bankers and experts who were ex-
amined by the House committee were
A. B. Hepburn, chairman of the cur
rency commission of the American
Bankers Association; Paul Warburg, of
Kuhn, Loeb & Co: Victor Morawetz,
Leslie NJ. Shaw, Prof. ]. L. Laughlin.
D. G. Endy, Festus J. Wade, president
of the Mercantile Trust Company of ST.
Louis; James E. Ferguson, of Temple,
Tex; William A. Nash, former chair
man of the Clearing house Association
of New York; George NJ. Reynolds, presi-
dent of the Commercial National Bank of
Chicago; John B. Farwell, of Chicago,
and several others.
Senator Owen says that after the re-
port made by the National Monetary
Commission IN 1910, the bankers of the
country carried on an active propaganda
Of education, spending between $780, 900
and $4,000. Mr.. Owen adds that after
the investigation made by the House
Banking and Currency Committee last
winter, and before the new bill was
actually drawn to comply with public
opinion, ''the preliminary draft was SUBJ
mitted to various representatives of the
American Bankers Association"
The Senator adds:
After the preliminary draft was
actually prepared for submission to Con-
gress, and before being submitted, the
present chairman of the Committee on
Banking and Currency of the United
States Senate spent seven hours with
Mr.. Paul Warburg, regarded as one of
the ablest representatives of those banking
interests, and their greatest expert on the
question of bank currency. The present
chairman also spent over ten hours con-
secutively in conference with the repre-
sentatives of the American Bankers As
sociation, discussing the details Of this
bill, and has been in constant communi-
cation with bankers from all over the
country. as well as with leading experts
on banking.
Hearings Start Today.
"After the bill was introduced in both
Houses a further and third hearing was
accorded to the representatives Of the
American Bapkers' Association by the
chairman Of the Committees on Banking
and Currency OF the House and Senate,
also by the Secretary of the Treasury,
and also by the President of the United
States. In addition, the chairman of the
Committee on Banking and Currency Of
the Senate called for the opinions of over
500 bankers on the pending bill and on
the principles involved in 1t, and 5000
copies Of the bill were sent out for in
spection and report"
.--rar-a -xy1y acToEI EATNT