The Washington herald., 1913-09-24
GLASS BILL FOES
GIVEN HEARING
Minnesota Business Men Make
Objections to Currency
Measure.
CREDIT IS RESTRICTED
Senator Reed and Mr.. Untermyer
Clash Over Proposition to Extend
VreeIand Act.

After listening to Samuel Untermyer,
formerly counsel for the PujO Money
trust investigating committee, at its
morning session yesterday, the Sensts
Committee on Banking and Currency lis
tened at its afternoon meeting to the
views OF a group of the Minnesota busi-
ness men. a delegation representing the
Minneapolis Civic and Commerce Asso-
ciation, the Minneapolis Chamber Of
Commerce, the Duluth Commercial Club,
and other mercantile interests of the
wheat-producing section of the great
Northwest.
The Minnesota men are not bankers.
Several of them acknowledged they had
interests in banks, held directorships, or
, had in the past been engaged in country
banking, but banking was not their prin-
cipal source of livelihood-only an Incl
lent.
Edward p. Wells of Minneapolis, presi-
dent of the Russell-Miller Milling Com
nany. of that city, appeared first. After
telling the committee that the group
which he headed represented the princi-
pal lines of business in the Northwest, he
explained that none of his party assumed
4 knowledge of the science of banking,
hut that they represented the borrowers.
Forthwith Mr.. Wells settled down to
show the committee that he did possess
the widest sort OF a knowledge of bank
ing in its relation to Northwestern farm
ing, and the concentration, conversion,
and redistribution Of the wheat crop.
, Credit Is Retarded.
Mr. Wells told the committee that the
Glass bill would not improve credit con-
ditions and would tend TO restrict, rather
than to diffuse. credit. He urged a
in hn Of ha
advisory board provided in the bill by
suggesting that at least one member, the
chairman. if possible. should have offices
in Washington and be paid a cOmpensa-
ton. He thought that il would be better,
however. TO create a paid executive COM
mittee of three members of the advisory
board, with permanent headquarters in
" ashingtOn.
Senator Weeks asked the witness if he
believed or felt that the passage of the
bill was at present necessary to prevent
4 general business disturbance. particu-
larly a financial disturbance, now that
The program of currency reform had been
initiated
No said Mr. Wells Il do not think
they are prejudiced in favor of immediate
action. l think they are very well salts
icd with present conditions
Mr.. Charles NJ. Harrington. an elevator
%
oils. followed Mr.. Wells. He dwelt at
length upon the length of credit extern
sion in the Northwest He raised Objec-
ton to the bill now pending that it pro
Vided a Limitation of ninety days on
9aper, to be discounted at the reserve city
BANKS.
This would mean,'' said Mr. EaFring-
.On. that the entire system of banking
in the Northwest would have to be
character maturing in the late autumn
and early winter, and where obligations
are not met before January, they must
be carried over for another year. The
bill as at present framed creates an
inhibition upon the extension of credit
as at present worked in the Northwest"
Paper Restriction Opposed.
Mr. F. f. Kenaston, manufacturer Of
thrashing machinery and farm tractors.
also of Minneapolis. followed. He ex-
pressed the view that the principal
faults in the bill were the compulsory
subscription to stock in reserve banks
by the member banks This he charac-
terized as un-AmeriCan. Mr.. Kenaston
also objected to the ninety-day restric-
ton on terminability of paper submitted
to the reserve banks as a basis for cur
rency issues.
He was interrupted DE Actlng Chalr-
man Hitchcock who is leading the op-
position to immediate action on the cur
rency bill, who asked:
Have they been holding any mass
meetings up in Minnesota urging Con-
gress to pass this bill in about fifteen
ninutes?'
Indeed. no." replied Mr.. Kenaston,
They are in no hurry for the bill in
Minnesota"
Opponents to the administration cur
rency bill think they see in the questions
Dropounded by Senator Reed and Senator
Hitchcock at the morning session, with
Mr. Untermyer on the stand, a disposi-
ton to favor the extension of the life
Of the Vreeland currency act rather thar
the immediate enactment of the Glass
bill Senator Reed sought to get Mr..
Untermyer's approval of such a plar.
Mr Untermyer engaged in sharp ex-
change of opinions during the examina
ton.
Il think some of your opinions, Sena-
tor Reed. are unsound, or, at worst,
rather extreme Mr.. Untermyer an
swered to one of Senator Reeds ques-
lions.
"'Of course. l reciprOcate that view,'
Senator Reed snapped back at him.
"As your testimony is likely to have