The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-09
O'Golman and Root Re-
sent Criticism Of New
York Banks.
HELD TO BLAME
FOR 1907 PANIC
Virginia Senator Points to In
ability of Richmond Banks to
Get Money Due Them From
New York as Example to
Enforce Argument for
Pending Bill.

/ Washington. December s-Sona-e
changes IN tho administration currcnoy.
bill. 50 far, will not cause any nro-
tractcd discussion when IL goes TO con
terence with til" House. in tho opin
ION Of President Wilson. With .d-
ministration leaders. ne hopes for pas
sage by December 20, and smooth ac-
uon III conference that will permit the
full Christmas vacation for Congress.
senate swanson. OF Virginia. one Of
IN" administration supporters on the
Ranking Committee. defended the ad .
inlhistration bill in the debate to-day.
generally analyZing the measure.
wh'ch hc declared was tho best remedy.
under present conditions He urged
prompt action, and praised tho Presi-
dent hithly for insisting upon cur
rcnCy reform.
senator Swanson attacked the CON
dition OF the New York banks during
IN" 1907 panic. and drew a vigorous
protest from Senator O'Gorman who
quoted from the hearings before the
RANKING Committee to show that coun-
Try banks had no trouble in getting
FUNDS from New York during the panic
general debate over vital fen
lures OF the proposed revision develop
cd during the speech of Senator Sel-
son. one "f tho Republican commit;
tee members who helped in the pre-
paration OF the bill submitted by the
Hitchcock faction of the Senate com
mittcc
Party Division. Forgottcn
Democratic Senator'S forgot partv di-
VISIONS and driftcd over into Repub-
iican chairs. and throughout the af-
ternoon the debate resembled 4 COM
mittee conference. Senator Nelson adj
important features of the Hitchcock
bill, and declared the Owen draft. and
the Glass bill, which passed the
House. were defective.
Public ownership of the stock Of the
proposed regional reserve banks would
greatly strengthen the banking sys-
ten OF the country. Senator Nelson
said. by bringing new banking CAPT
tai into existence. He objected to the
double liability features of th.. owen
bill, as applied 10 the stockholders of
the regional reserve banks StockL
holders Of local banks are held under
double liability. he said. and TO hold
them 10 that liability again in the
regional reserve banks would impose
TOO great burden upon them.
Real interest in the debate was
manifested during the speech OF Sena-
ator swanson. when Senators O'Gorman
anu Root took exceptions 10 the vir-
Iinia Senator's criticism OF the conduct
OF the New York banks during the
panic OF 1907. Mr.. Swanson charged
that the New York banks held back
reserves belonging to country banks, in
consequences of which the panic was
prccipitatcd.
Senator O'Gorman rctortcd that if
senator Swanson had read the tcsti-
mony taken by the Senate committee he
could not have made such a statement.
More misapprehension exists about
the banking and currency question:"
said Senator O'Gorman, speaking with
warmth, than upon any other public
question Much of the inaccuracy Is
based upon ignorance. and. at times
upon desire to aid in disseminating
Information that thoughtful persons
know TO be without real foundation"
Comes Back Sharply.
Senator Swanson came back sharply
with statistics from the comptroller's
office TO show that in August. 1907. the
New York City banks owed other ma
tional banks S213,00O.OO0 and owed
state banks Sl96,O0O, oU0. or a total of
$;0?,o0e,000 duo TO banks outside OF
that financial centre
on October 81 OF that year con
tinued Senator Swanson. the banks of
Richmond had due tncnt between So
100000 and S3,Goc,000. and they could /
not get the money. The New York /
banks suspended payment. IL was alb 2
solutely impossible to get shipments of .
currency from them, although they had 4
S224,000o00 in their vaults. They got f.
scared too quickly or else their action
had sinister move"
Senator oGorman also produced fig /
urcs. and stated that the total loans
pf New York City banks TO country .
banks at that time WAS more than the
81 0,U0o.000 of deposits they had from
banks.
And | am satisfied that an cxanina-
ton of the figures viii show that en-
tctly the opposite was the case re-
tcrated The Virginia Senator.
Senator Weeks referred to the re-
servo requirements of the law. and.
that al that particular june
-urc every national bank was Violat-
nS IL. asked: is il fair to criticize
hem for stopping II some point. when
hey knew they were breaking the law
vc had imposed upon them
Laying foundation upon which to
Iuild his case, Senator Root obtained
Continued on Thirteenth Pagc)