Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-26
Finance Magnates of New
England Tell Senate 0bjec-
tons to Pending Bill. 4
WOULD DRIVE COUNTRY '
BANKS OUT OF SYSTEM
Prof. Fisher Tells Committee Gold
Reserve Should Be Larger-Hear-
ings to Continue.

New England bankers today discussed
the administration currency bill before
the Senate banking committee Generally
they disagreed with its provisions and
suggested vital changes.
The New England delegation was
brought before the committee by Sena-
tor Weeks of Massachusetts. 1t was
headed by Charles p. Blnn. vice presi-
dent of the National Union Bank OF Bos-
ton. and included Justin T. Narney. vics
president of the Bay State National
Bank of Lawrence. Mass: President
Bowman OF the Springfield National
Bank, and President Drury OF the Mer-
chants National Bank of Worcester.
General Opposition Expressed.
Mr.. Blinn said that as president OF
the Massachusetts Bankers Associa-
ton he was opposed to the bill IIo
said correspondence with banks In
New England showed a general oppo-
sition TO the bill
He presented figures to show that
the organization OF the proposed re-
glonal reserve banks would cause
temporary contraction of credit.
He said that under the plan central re-
serve city banks would be forced to sup
ply s2l9.voO,uOO of cash which they would
not possess. To secure this cash. he
said. the banks would either have to re-
discount paper or call In their loans The
present prejudice against rediscounting
among bankers would operate 10 force the
banks to call in their loans and thus
contract credit.
Mr.. Biinn also objected to the provision
of the bill allowing the regional re-
serve banks to so into the open market
to deal in commercial paper This, he
q would rRtyl has. lra
competition with the member banks.
which are forced to supply the resources
of the regional banks. He said this
power would not be necessary to enable
the federal banks to fix and maintain the
rate OF discount.
Hard on Country Banks.
Mr.. Drury said that while the small
banks were in favor of some of the pro-
visions of the bill. they believed its de-
mands too heavy upon the country bank
er. Unless some of these were made cas-
Ter, he said. country banks in Massachu-
sets would find it to their advantage TO
surrender national charters become state
trust companies and stay out of the sys-
tenn. The principal objection, he said,
was that country bankers believed the
system would take away from them
selves the control of part OF their capi-
tai and would place II In the hands OF q
politically controlled board"
Prof. Fisher Heard.
Prof. Irving Fisher of Yale University.
expert on the theory of currency. yester-
day afternoon Endorsed the principles of
the administration currency bin before
the Senate committee, but proposed a
number of amendments to the measure.
He criticised the provision OF the bill fix
ing the gold reserve to be held against
the new currency at 33 1-3 per cent. and
recommended that this be increased 10
40 or 80 per cent.
Hearings to Continue.
The desire of the committee to examine
Edward d. Hubert of Chicago. banker.
further brought out the fact that hear
ings on the bill will be continued indefi-
nitely Mr.. Hubert said he was willing
to return to Washington later, and asked
how long the hearings would continue.
1.-THE chairman of the committee can't
saw" answered Senator Owen.
oh about two months" suggested Sen
ator Hitchcock, who has indicated that he
will oppose the bill.
Reed Not Insurgent.
Senator Reed denied before the commit
tee a statement accredited to him that the
currency bill would not pass at the pres
emf session of Congress. He said. too,
that he resented any reference 10 imselt
az a democratic insurgent. because OF
his position regarding the measure