New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-06
DEMOCRATS MAY FIGHT
WILSON ON CURRENCY
Ready to Oppose Him if He
Tries to Jam the Bill
Through Hastily.
BANKERS KEEP UP ATTACK
Say Bill in It's Present Form
Would Cause Withdrawal
of go Per Cent of the
Outstanding Loans.
IFrom The Tribune Bureau

IFrom The Tribune Bureau
Washington, Sept. 5.-The fight over
the question of postponins currency legs-
ration until the regular session of Con-
gress. in December was transferred to-
day to the Banking and Currency Com
mittee of the Senate. to which was Ie-
ferred Senator Weeks's resolution. direct
ing the committee to make its report On
December >.
Senator owen, chairman of the COM
mittee, intimated to-day that the resolu-
ton will be pigeonholed without action.
but Senator Weeks is confident that tic
committee. Of which he is a member, Will
give it consideration Senator Hitchcock
is said to be in favor of the resolution.
and it is possible that it may be modified
in some way to obtain the support Of
sufficient number Of the majority MEM
beps 10 insure favorable report.
Despite the resolution of the Demo-
cratic caucus TO consider currency
legislation at this session. many Demo-
Gratis believe more time should he given
to the subject The President VIII UNI
doubtedy meet with strenuous opposition
in the ranks OF his own party II he at
tempts 10 lam the bill through with TOO
much haste.
The somewhat frankly avowed position
Of the President is that the opposition.
now worn out with its tariff labors and
eager for adjournment, VIII refrain from
debating the currency bill At much length,
and will. in fact, be almost supine lie
and his immediate advisers are satisfied
with the bill, and he does not wish to
give the opposition an opportunity ITO
get its second wind
There are, however, even In his own
party, men who do not regard his Stt-
tude as Democratic. and who fear that
when the facts are realized generally they
will iniurc him and the party.
The hearing Of the bankers to-day only
served To accentuate the divergence OF
opinion among members of the BANKING
and Currency Committee On the subject.
Their questions indicated, for the most
part. that they are in a state Of mind APP
preaching bewilderment. and every "rit-
cism and suggestion of the bankers. made
with telling directness. only served To Ina
GltAlt lIc ndSillldu' anu NV iN"rs - 49,
task which confronts them
George NJ. Reynolds. president Of the
Continental and Commercial National
Bank Of Chicago, startled the members
Of the committee by the prediction mat
the enactment OF the administration Dill,
in its present form. would result in the
withdrawal Of 90 per cent of the loans
now outstanding by the national banks
in order that they may nc ~ a position
10 comply with its requirements. ms
would be necessary, he SAID, That the
banks might obtain the reserves made
COMPULSORY by the law.
lama 3. Forgan. also of Chicago. sug-
gested that the apparent effect OF the bill
would be a contraction OF credits. II the
present reserve basis OF the national
banks were to he maintained Both OF
those predictions are the antithcsis of the
results expected by the administration
leaders.
Instead Of relieving the currency sltna-
,ion. according to the bankers. the immc-
diate effect Of the establishment OF the
system proposed by the administration
would be the creation OF still greater
striugcncy. with disastrous eject upon
the commercial or borrowing class ot the
country.
Former Representative Ebenczer Hhl'
Of Connecticut. insisted that the govern
mont should not issue the notes provided
bv the administration bill. This. he said.
should be done by the banks Themselves.
which hold the reserves and are directly
responsible for them.
70 obligate the government TO redeem
the proposed currency would place TOO
great a strain upon the depleted reserves
Of the Treasury. he explained. which
might collapse in case of a panic. lie
seriously questioned the constitutionality
of this provision Of the proposed law.
"If changes are not made" said Sol
Wexler. Of Sew Orleans, II am confident
state banks will not come In, and many
national banks will reorganize under state
charters. You will have a legal shell, but
YOU connot organize the banking system
it contemplates."
Would you prefer no new law AT all
rather than the bill now before the
House?" asked Senator Bristow
we would decidedly prefer no law we
do not believe the House bill onors
sound or workable system OF hnahciai
fnr