The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-09-09
The Administration Currency
Reform Measure Reported
To the House in Form Ap-
proved by the Caucus.
CORRECT LONG STANDING EVILS
According to the Language of
the Committee.
Would Do Away With Present
Bond Secured Currency.

washington. Sept. 9.-The admins
tration currency reform bill as ap-
proved by the Democratic caucus was
reported to the house today from the
committee on banking and currency
by Chairman Glass. A voluminous re-
port, including a lengthy technical dis
cussion of the theory of the bill, ac-
companied the measure setting forth
the views of the Democrats on the
committee. Representative Hays of
California presented a report from the
Repuoicans criticising the measure
and proposing various amendments.
The majority declared that the bill
is intended to bring about necessary
changes in the present banking and
currency system of the United States
and to correct long standing evils that
nave had a slow and deep rooted
growth. 1t aims at the rectification of
the essential defects of the present sys-
tenn although it does not seek to make
all the innovations that might from an
ideal standpoint be deemed desirable"
ReV1eWlng the arguments against the
so-called Aldrtch plan outlined by the
national monetary commission and
against all central bank plans suggest
ed the report says:
After looking over the whole ground
and after examining the various sug-
gestlons for legislation, the committee
on banking and currency is firmly of
the opinion that any effective Iegisla-
ton on banking must include the fol-
lowing fundamental elements:
creation Of a joint mechanism for
the extension of credit to the banks
which possess sound assets and which
desire to liqufdate them for the pur-
pose of meeting legitimate commercial
agricultural and industrial demands on
the part of their clientele.
Retirement of Bond Secured Notes.
ultimate retirement of the present
bond secured currency with suitable
provision for the fulfillment of govern
ment obligations to bondholders. cou-
pied with the creation of a satisfac-
tory flexible currency to take it's place
Provision for better extension of
American banking facilities in foreign
countries to the end that our trade
abroad may be enlarged and that
American business men in foreign
countries lay obtain the accommoda-
tions they require in the conduct of
their operations.
Beyond these cardinal and simple
propositions the committee has not
deemed it wise at this time to make
any recommendations save that in 4
few particulars it has suggested the
amendment of existing provisions in
the national bank act with a view to
streng gthening that measure at points
where experience has shown the neces-
sity of alteration
CreditiEg the present financial sys-
tenn with chief responsibility for the
various panics of the past half century,
the report sets forth that under the
proposed law the federal reserve
banks to be created under the bill
would have available at least $780,
100000 of reserves in cash.
"'This,'' said the report, "would
create a reservoir of liquid funds far
surprising anything of similar kind
ever available in this country hereto
fore. 1t would compare favora bly,
with the resources possessed by gov
banking institutions abroad"
The committee reviewed the bill
section by section, setting forth at
great length the probable operation
and results of the law
The Minority Report.
In their min ority report on the bill. |
the Republicans pointed out what they |
held to be the weaknesses of the meas |
ure. They said they found the Demo- |
Gratis $50 bound by their caucus action |
that they could not consider amend
nents to the bill. which if adopted, !
would have eliminated its unsound !
and questionable provisions"
They suggested that the provision !
national banks to subscribe |
for the capital stock of the federal re- |
their charters was "of doubtful con-
and wholly unnecessary |
and inexpedient.'
II the plan of the bill is a good one |
they said, the banks would gladly par
ticipate, if not, should the banks re- |
fuse to enter the system "all business |
would be disastrously affected
The Republicans declared that the |
provisions making the new federal re- |
serve notes obligations of the United |
States" practically creates a central |
bank. They urged that the powers of |
the federal reserve board We're too |
great and that there is a great dan
ger as the bill is now drawn, that he !
banking business of the country may |
be used for partisan political advan- !
tage.'
The Progressive views of the curren-
cy question were set forth in a report |
on the Glass bill filed several days ago |
by RepreSen tive Lindebergh of Min /
neSota. the ProgreSsiXe nemher of the