New-York tribune., 1913-07-24
lam Through House Committee
Amendment Prohibiting In
terIoCking DireCtorateS
Among Banks.
MEASURE IN GRAVE PERIL
Chairman Glass Protests in
Vain, and Unless President
Uses Party Lash at Once
Administration Plan
Seems Doomed.
rFrom Tho Tribune Bureau. !


Washington July 23.-Showing un-
expected strength and decreasing the
prospects of currency legislation at
this session, the insurgent Democrats
Of the House Banking and Currency
Committee jammed through the Demo-
cratic conference to-day a radical
amendment to the administration bill
By a vote of Z to :. despite the
earnest protests of Chairman Glass and
tne conservatives, an amendment was
adopted prohibiting interlockirg di
rectcrates among national banks. or
among any banks which may become a
rart Of the federal reserve system Gre
ated by the bill.
Adoption Of this amendment has
completely upset the plans of Chair
man Glass and other leaders, who have
tried TO minimize the seriousness Of the
situation IN the House committee. A
distress signal will go out Immediately
n President Wilson, and unless he
brings powerful pressure to bear at
once the currency bill may fail en-
tirelC.
There is hanging over the head of
Mr.. Glass and other administration
leaders the threat that the insurgent
faction will offer a substitute bill in
committee tomorrow or next day.
This bill Is the result of secret confer
ences between Chairman Henry, of the
Rules Committee. and the several
radicals" Of the Banking and Currency
Committee.
The action Of the Democratic trainers
of / bill to-day is the first break
toward the recommendations Of the
Puio money trust committee, which
have been frowned on from the outset
by Chairman Glass and the admins
tration leaders. Adding TO Mr.. GLASS;
discontinue, the conference instructed
him to draft the amendment which
will prohibit interlocking directQrates
in national banks.
Chairman Glass, utterly out Of SYM
pathy with such an amendment said to-
night that he had not decided on the
language cf the provision, which must
he satisfactory to the insurgents The
amendment is TO be so worded that no
person who IS a director OF one ma
tional bank shall be a director Of any
similar institution. The same rule is TO
applv 10 state hanks. which may be-
como q part Of the federal reserve sys-
tenn proposed in the Glass-Owcn bill.
The measure provides that state banks
shall be invited. but not required, to
become members Of the regional re-
serve associations.
The amendment adopted to-day was
offered by Representative Wingo, OF
Arkansas. who, with Representatives.
Eagle. Ragsdale and Korbly. has re-
peatedly tried to make a dent in the
administration bill. The vote in COM
mittee was not officially announced.
but it is understood that Representa-
tiyes Bulklcy, Weaver and Neeley
swelled the insurgent ranks and de-
featcd the administration forces.
A second amendment by Mr.. Winso
prohibiting directors Of national banks
from taking part in stock speculation
was rejected by the narrow vote OF
10 :. and may be adopted on recOnsid-
Grafton.
As previously told in The Tribune,
the administrations currency bill is in
Jeopardy, and unless President Wilson
can leave the Mexican situation long
enough 70 WELD a whip over the House
committee the chances are against
his measure. 1t is doubtful that even
a Democratic caucus can save the
measure intact unless the President
uses the party lash even more vigor-
ously than he did in the tariff fight