The Birmingham age-herald., 1913-08-25
Administration Forces Vig-
OrOusly IndOrse Bill AS
1t Now Stands
ADMIT MERIT OF
SOME PROPOSALS
Senate May Finally Work in the
Changes, But House Expected to
Pass Original Measure-Many
Suggestions Made

Washington. August 24.-The answer
of the administration forces in the
House to the criticisms of the currency
bill made by the conference of bank
ers at Chicago yesterday will be a
Tightening UP of the lines and more
vigorous Endorsement of the bill as it
now stands Informal conferences of
democratic members of the House cur
rency committee today empasized the
fact that the active supporters of the
Presidents currency plan expect to pass
the measure through the House with
out substantial change.
The amendment proposed by the
bankers, 1t was pointed out by House
leaders today, all were considered in
detail when the bill originally was pre-
pared and In the long debate over its
provisions in the House committee on
banking and currency
Change Not Expected
The proposal to reduce the quantity
of reserves and give country banks the
privilege of keeping part of their re-
serves In the large cities had many sup
porters and ultimately may be worked
INTO the bill in the Senate, but the
change is not expected in the House.
The bankers will have an opportunity
to present their views openly to Con-
gress after the currency bill gets into
the Senate. Chairman owen of the Sem
ate currency committee said today that
while hearings had not yet been ar
ranged he expected leading representa-
tives of the various factions" among
the bankers of the country would be
invited to give their views of the bill
to the Senate committee
Merit in Proposal
I see great deal of merit in the pro-
posal to reduce somewhat the quantity of
the reserves said Senator Owen. I'VE
nave not discussed the new legislation
sufficiently In committee, however, to
Know what changes may be made in the
BILL"
The fact that leading bankers hold diff
ferent views of the effect of the new legis-
lation, particularly with regard to the pos
sible reduction of loans and curtailment of
credit, has led members of the Senate.
committee to believe that a further discuss
sion Of the bill at open hearings would re-
suit IN winning the cooperation and sup
port of large portion of the country's
banking fraternity.
Few of the changes advocated by the
bankers will receive favorable consider
alton from the democratic forces in the
opposed to the idea OF changing the feder-
al board of control so banking interests
would have a share in its management or
10 creating currency to be issued by the
banks instead of by the federal govern
ment. Tt is believed q large majority of
the Senate will adhere to the plan for
treasury notes rather than notes issued by
banks.
Plan for Retirement
the currency committee, tomorrow VIII in
troduce in the Senate a proposed plan for
the retirement of all existing currency ex-
cept silver certificates and the Issuance
of a general form of treasury notes Sc
cured by a so per cent gold reserve.
Senator Shafroth's bill also would
substitute treasury notes at once for
all outstanding national bank notes
and would cancel the government bonds
that now form the security for the
national bank currency He said today
his bill would save s14.S00,000 in in
terest now paid by the government on
bonds used to secure national bank
currency, a sum that would be in
creased to $22,246.00o if the two per
cent bonds were refunded With per
cents.
'Tt would take the control of the
currency out of the hands of the banks
and place 1t in the government" said
Senator Shaffroth. 'It would satisfy the
bankers because 1t would cash their
2 per cent bonds without loss"
Request Hearings
Many requests for hearings have been
received by members of the Senate
committee. Among these are requests
from offers of leading labor organ
izations. One such letter. from 7. j..
Dolan of Chicago. secretary treasurer
of the Brotherhood of Steam Shovel and
Dredgemen, said In part:
The working men of the country
are just as much if not more interested
in the pending currency measure than
any other class, as they are the peo-
pie who deposit their earnings In the
savings banks of the country l be-
lieve If representative men of the diff
ferent classes of people Interested in
this measure were invited to partici-
pate In a conference great good would
come from it."