The Washington times., 1913-09-09
HOUS{ RECEIVES
! CURRENCY BILL
Republicans of Committee Ask
for Few, But important,
Changes in Measure.
Continued from First Page

Continued from First Page.)
may obtain the accommodations they
require in the conduct of their opera
tons.
Beyond these cardinal and simple
propositions the committee has not
deemed 1t wise at this time to make
any Recommendations. save that in a
few particulars II has suggested the
amendment of existing provisions in the
national-bank act, with a view to
Strengthening that measure at points
There experience has shown the neces-
sity of alteration"
Condemns Aldrich Plan.
The majority report condemns the So
called Aldrich plan. the result Of the
Monetary's Commissions work. The
cornmittee Democrats say they object to
the Aldrich central bank idea, because
it had the tendency to throw the voting
control into the hands of the larger
banks Of the system. and because of its
lack Of adequate Governmental or pub
lie control of the banking mecha nism set
up.
1t is declared that the Glass bill meets
these and other defects of the plan sug-
gested by the Monetary. Commission,
and that the Administration bill, while
not q perfect measure, is workable and
fair to all. The essential features Of
currency reform needed, the Democrats
say, are the following which are en-
braced in the bill:
The other plans before the commit
tee or examined by 1t have likewise
been found neutrality-suspicious. for
reasons analogous to those which
made the Aldrich bill unacceptable.
others because of defective detail. er-
roneous principle. or faulty construc-
ton. An effort was, however. made to
ascertain the constituent elements of
these measures and of the Aldrich BILL
common to all, which should be recog-
nized and provided for in any new
plan because representing the funda-
mentals OF legislation. 1t Is believed
that these are as follows:
Establishment of a more nearly uni
form rate Of discount throughout the
United States, and thereby the furnish
ing OF a certain kind OF preventive
against overexpansion Of credit which
should be similar in all parts of the
country.
General economy Of reserves in order
that such reserves might be held ready
for use in protecting the banks of any
section of the country and for enabling
them to go on meeting their obligations
instead Of suspending payments. as SO
often in the past.
FURNISHING of an elastic currency by
the abolition of the existing bond-se-
cured note issue in whole or in part.
and the substitution Of a freely issued
and adequately protected system Of
bank notes which should be available
to all institutions which had the proper
class Of paper for presentation.
Management and commercial use of
the funds Of the Government which are
now isolated in the Treasury and sub
treasures In large amounts.
General supervision of the banking
business and furnishing Of stringent and
careful oversight.
Creation of market for commercial
paper;
"Other objects are sought, incident
ally. In these plans. but they are not
As basic as the chief purposes thus
enumerated"
Expenses Criticized.
The majority report criticises the
large expenses of the Monetary Com
mission, saying that it spent more than
100000 and that there is in its report
practically nothing of original value
or Of direct aid bearing upon the de-
tails of remedial legislation
Answering suggestions that the Aid
rich-Vreeland act, passed as an emer-
sency measure in 1905 might be con-
tnued to meet future needs. the Demo-
acterize this as "a weak makeshlft
soon to expire
The general purposes of the Admin
istration's currency bill and the need
for currency reform are thus set forth
In the majority report:
'Tere can be no doubt that for some
time past the national banks of the
United States have been In a difficult
situation The committee has been
amply warned and advised Of this state
Of things, and general knowledge of
II is common to the country at large
certainly to all close or careful Oh,
servers of existing conditions.
In the reserve centers today banks
are unable to extend the credit that
they would under normal circumstan-
ces be disposed to grant, while mer-
chants are frequently unable to get the
accommodation to which they are en-
titled. A general tendency toward
strinsency evidently exists, and while
this is not peculiar today to the United
States IL should not be felt here in
asmuch as this country has not had to
bear the burden of warfare and des-
truction OF capital that has been
thrown upon the European countries.
"All over the Western world there
IS now a distinct shortage OF capital,
10th fixed and floating, while our
banking and reserve situation is any
thing but reassuring. Under such cir
cumstances 1t is highly desirable that
the utmost efficiency should be given
" tii6 TcscENc RESOURCES In tlS nanOS
OF the banks and that they should be
enabled to do all that circumstances
VIII permit in extending to the bust
ness world the volume Of loans that II
needs, SO long as they maintain them
selves in position to protect the &C
commodation thus granted.
Badly Needed.
Legislation which will relieve this
pending condition of pressure and
possible panic, which will place the
banks In position to employ their re-
sources to the best advantage, which
Will obviate the necessity Of expensive
transfers of funds between different
parts OF the country, and which will
furnish loans upon an inexpensive but
absolutely safe basis was never more
urgently demanded than IL is today.
IL 10 this condition of affairs that
has most strongly moved the Com
mittee on Banking and Currency in
It's effort to press a measure Of relief
upon the attention of the House
Republican objection TO the Glass bill
Is voiced against several fundamentals
or the Democratic measure. namely:
The provision which compeis national
banks to subscribe for the capital stock
of the Federal reserve banks on pain of
forfeiture Of their charter. The minority
doubts the constitutionality OF this pro-
vision.
The provision that the currency issued
through the Federal reserve banks Shall
be the obligations of the United States
IT IL contended that In times Of stress
this promise to pay by the Government
would lead 70 serious complications in