Evening star., 1913-06-21
POLITICS SCENTED
IN CURRENCY BILL
Administration Would Domi-
nate Banking System, II
Is Charged.
INITIATION OF CURRENCY
ALSO BEING FORECASTED
Many National Banks Threaten to
Operate Under State Charters,
Wilson to Stand by Measure.

One OF the most serious criticisms OF
the administration's new currency BILL
already being freely registered in Wash
tngton through countrywide communi-
cations, Is the charge that the national
/ banking system Of the nation is placed
under political domination. The next seri-
Gus objection raised to the bill is that
failure to retire the national bank notes
will, through the issue Of the $500 600, COO
virtually result In initiation of the cur
rency to that amount.
On top of these criticisms come threats
of New York and Chicago national banks
to abandon their national charters, if the
bill becomes law, and to take out state
charters under which to transact their
business.
The charge that the supervision of the
national reserve banks is relegated to DO
litical control is regarded as the one
likely to attract most attention and re-
suit in freest discussion. AS the bill
reads, there is said to be no question
of doubt that absolute control of the
banks is vested in appointees of the
President.
Functions of the Board.
The federal reserve board to be an
pointed by the President is authorized: ::
thirty days (and to renew such suspen-
sion for periods not to exceed fifteen
days. any and every reserve requirement
specified in this act
To supervise and regulate the issue of
Treasury notes to federal reserve banks
TO add to the number of cities classi-
ned as reserve and central reserve cities
under existing law in which national
banking associations are subject to the
reserve re cot fnrfh tv, %Lo %.
or to reclassify existing reserve and CEN
tral reserve cities and to designate the
banks therein situated as country banks
at its discretion
To require the removal of officials of
federal reserve banks for incornpetency,
dereliction of duty, fraud or deceit
10 require the writing off Of doubtful or
worthless assets upon the books and bal
ance sheets of federal reserve banks
To suspend the further operations Of
any federal reserve bank and appoint a
receiver therefor.
To perform the duties, functions or
services specified or implied in the act.
70 examine at Its discretion the ac-
counts and books Of each federal re-
serve bank and to require such state
ments and reports as 1t deems neces-
sary.
To require. or on application to per-
count the paper of any other federal
reserve bank
To establish each week, or as much
oftener as required, a rate of discount
which shall be mandatory upon each
federal reserve bank and for each class
OF paper. provided that said rate of
discount need not be uniform for all
federal reserve banks, but shall be
MADE with a view to accommodating
the commerce Of the country and pro-
noting stable price level
Tremendous Political Lever.
The board can virtually expand or
contract the issue of money based on
commercial paper at its pleasure, nomi-
nate the character Of the paper and
designate the section in which the
money shall be let out.
1t is charged that this power would
be a tremendous political lever in
political campaigns and political crises
having in mind especially the power Of
the federal board to cater to the farmer
vote and in agricultural sections by
ioosening up money on commercial
collateral, which of course would in
clude good farm collateral
1t is the general impression in the
House that this feature is the work
of the western element in the admins
tration and many congressman give
William ]. Bryan the credit for it,
The original bill. which was amended
after Mr. Bryan's two-hour conference
with the President and the midnight con-
ference at the White House last Wednes-
day, guarded I'm a measure against such
sweeping political control of the federal
reserve board.
What Bryan Baked At.
The original bill gave the banking in
terests partial representation on the
board, although ii left the government in
| majority control. This was what Mr..
BRYAN is understood to have baked at
and finally caused to be eliminated.
The first draft of the bill provided for
board of control of nine members. three
of whom should be chosen by the federal
reserve banks through a board of fifteen
electors. Three others should be appointed
| by the President. and the remaining three
! the Secretary of Agriculture and the con-
| troller of the currency.
AS amended, the board consists Of seven
members. the three government officials
! above mentioned and four members to
| be appointed by the President one Of
whom is to have practical banking expert
| ence.
| Interviews published in the press with
| ready that the banking community is TAX
| ing alarm at the political possibilities
| seemingly involved in this measure Of
| control. and will fight that feature of the
| bill vigorously.
Wilson to Stand by Bill.
President Wilson has not been back
ward In stating to visitors who discussed
the currency bill with hinf that he is
for the bill and will stand by II. He is
| willing that the bill shall be amended in
any way that will strengthen it, but
amendments offered for the purpose of
obstructlng its passage and having no
decided bearing will be opposed by him.
He proposes TO watch the progress of
the measure with close concern and will
| have frequent conferences with those who
have suggestions to offer that tend 10
make the bill better
The Senate today completed the action
necessary for holding the joint session
Monday to hear President Wilson's cur
rency message when it passed the reso-
luton adopted yesterday by the House.
No debate attended the passing of the
resolution. The Senate will meet at noon
MONDAY. and will proceed in a body to
the House chamber shortly before ]
o'clock. when President Wilson is to ap-
pear for the second time to deliver orally
"a communication to the legislative
branch Of the government