El Paso herald. (El Paso, Tex.) 1901-1931, 1913-10-23
HAS SUBSTITUTE
FOR FEDERAL BANK
Vanderlip Frames PROPOSE
ton for Committee at Sug-
gestion Of Senators

Washington. D. c., Oct. ga COM
plete substitute plan for government
controlled federal bank was presented
10 the senate banking committee today
by Frank A. Nanderlip. president of the
National City bank of New York. He
framed the plan at the suggestion Of
senators.
THE government would grant a so
year charter to the federal reserve
bank Of the United States. with capt.
tai CT s100000,000," he said.
Mr.. Nanderlip outlined a plan to
have the proposed bank rediscOunt for
all member banks commercial paper Up
10 the amount of the member bank
capital and surplus The federal bank
would also buy and sell paper bearing
endorsement by member banks in the
open market in order to maintain dis
count rate
The federal bank would issue curren-
cy dollar for dollar for the gold or for
the commercial paper rediscounted for
the banks, provided 50 percent gold
reserve was maintained against the So
called ''unse cured" issue based on COM
Hearings to Close Saturday.
Plans for securing the aid of ex-
TO the administration currency bill have
been made BY the senate banking and
currency committee. Hearings on the
bill viii be closed formally Saturday
and then consideration of amendments
will begin. Other witnesses whom the
committee wishes to hear. particularly
finaneiers familiar with the movement
of gold between the United States and
Europe, who have not been able to at
tend so far, are to be examined as
work on the amendments proceeds
The members of the committee
agreed that the framing of amend
ments must be done with greater DELHI
Grafton and each one will be submitted
TO an expert qualified to judge of its
effects
The committee heard four witnesses
discuss the bill.
Taylor Vincent, of Huntington. ".
Va. proposed an entirely new banking
and currency scheme. He recommended
that the collectors Of internal revenue
be made branch officers Of this bank to
pass on credits, pointing out that they
would have at their disposal as credit
information the returns under the in
come law.
F. ]. Syme. Of New York. briefly
endorsed the general principles OF the
The effect Of the bill on banks in
Hawaii was called to the committees
attention by L. Z. Peck, cashier of the
First National bank of Hawaii. He
asked that the Hawaiian banks be al
lowed TO retain their charters under
present conditions
The senate met at noon under an
agreement to vote on the seaman's bill.
Would Be Insult to Nations
That the socalled 'seaman'S servitude
bill" now before the senate. would re-
peal or annul many foreign treaties
that is almost an insult to certain
countries, was cOntended by senator
Burton. Of Ohio, in the senate
The senator's statements were made
after foreign protests against the bill
had been informally. considered by the
senate committee on foreign relations
Germany, France, Great Britain and
Belgium have made representations
that the United States ought not TO act
on any proposed shipping regulations
or safety at sea requirements until after
the international maritime conference
is held at London, November u. The
London conference will take up gem
eral questions of safety appliances. the
manning of lifeboats, the efficiency of
jects-
Bacon Makes Protest
A vain effort BIZ senator LaFollette
bill brought further protest from SEN
ator Bacon. chairman OF the foreign re-
lations committee
1t is a serious thing TO abrogate a
treaty with another nation; to set aside
our solemn agreement with if without
first consulting the nation senator
Bacon said We have enough present
and anticipated frictiOns now with for
eign governments, over disputed ques-
tons, TO convince US that in matters Of
such great consequence We should not
act without at least having knowledge
OF what we are doing.
The senator declared the bill appar-
entity would abrOgate certain treaty
agreements with Germany