Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1913-08-29
BANKERS WIN POINT
SENATE TO GET FlNANcIERs'
OPINIONS ON THE GLASS CUR
RENCY BILL.
no GRANT OPEN HEARINGS
Senator Owen. co-Author Of the Adj
administrations Measure, Sees Merit
In Plan to Reduce the Quantity of
Bank Reserves.

Washington. Aug. 26.-In answer to
the criticisms OF the currency bill
made by the conference of bankers
at Chicago the administrations forces
in the house will tighten up the lines
and a more vigorous Endorsement of
the currency bill as 1t now stands will
be the result.
Informal conferences of Democratic
members of the house currency COM
mittee emphasized the fact that the
active supporters of the presidents
currency plan expect to pass the
measure through the house without
substantial changes
The proposal to reduce the guam.
tity of reserves, and give country
banks the privilege Of keeping part of
their reserves in the large cities had
many supporters, 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 opportun.
ity to present their views openly to
congress after the currency bill gets
into the senate. Chairman Owen of
the senate currency committee said
that while hearings had not yet been
arranged he expected leading repre-
. sentatiyes of the various factions"
among the bankers Of the country
would be invited to give their views
of the bill to the senate committee.
Il see a great deal of merit in the
proposal to reduce somewhat the
quantity Of the reserves" said Senator
Owen.
The fact that the leading bankers
hold differing views of the effect of
the new legislation, particularly with
regard to the possible reduction of
loans and curtailment of credit. has
led members of the senate committee
to believe that a further discussion
of the bill at open hearings would re-
suit in winning the cooperation and
support Of a large portion of the
banking fraternity of the country.
Few of the changes advocated by
the bankers conference in Chicago
will receive favorable consideration
from the Democratic forces in the
senate.
Senator Shafroth, majority mem
Der Of the currency committee will
Introduce in the senate a proposed
plan for the retirement of all existing
currency except silver certificates,
and the issuance Of a general form
OF treasury notes secured by 80 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 his bill would save $14,-
100000 in interest now paid by the
government on bonds used to Sc
cure national bank currency, sum
that would be increased to $22,246,-
900 If the two per cent bonds were
refunded with three per cent.
bonds.
1T would take the control of the
currency out of the hands of tie
banks and place 1t in the govern
ment," said Senator Shafroth; sit
would satisfy the bankers, because it
would cash their two per cent. bonds
without loss"
Representatives who support the ad-
ministrGtion currency bill won vic
tory in the house Democratic caucus
on Friday when they brought to their
aid and unuuaIified Endorsement of the
measure from Secretary of State
Bryan and defeated proposed ''insur
gent" amendments that would have
prohibited interlocking directorates in
national or state banks incorporated
under the proposed law.
Secretary Bryan, in letter adj
dressed to Chairman Carter Glass of
the currency committee. approved the
bill as it stands, declaring President
Wilson had recognized fundamental
rights of popular control in it's proyi,