The Washington herald., 1913-08-16
CURRENCY BILL
CALLED VICIOUS
Measure Bitterly Assailed in
Democratic Caucus by
Mr.. Hardwick.
DECLARED UNAMERICAN
Vigorou. Defense by Leader Under
wood-Debate in House to Be-
gin About August Is.
DECLARED UNAMERICAN

The administration banking and cur
rency reform bill was savagely assailGd
in the House caucus of the Democrats
yesterday, necessitating vigorous
speech in defense by Representative In
derwood, the majority leader, who has
undertaken, in behalf of President VII
sen, the task of plotting the measure
through both the caucus and the House.
Representative Hardwick of Georgia
attacked the BILL declaring it was ur-
American and un-Democratic in principle
and vicious in the extreme. He charged
that while the bill proposed to give the
government some measure of control
over the banking business, that ii at the
same time made possible a bankers mo-
nopoly of the business. He was partic-
uiarly severe in his denunciation of the
provision that gave the Federal admin
istration. through the reserve board, su-
pervision over the proposed system of
regional banks.
Mr.. Hardwick claimed that he had
opposed on the stump just such a sys-
TEN Of banking as was now fathered
by President Wilson, who. he had told
his constituents, would never subscribe
to such a measure as the one now un-
der consideration.
Mr.. Hardwick's arraignment Of the
administration brought Leader Under
wood to his feet. He declared that the
measure was the best compromise on
the question that could be evolved un-
der present conditions. He said that
the Democratic party was pledged to
pass a banking and currency reform
law.
Tired of Panics.
Mr. Underwood insisted that the
country was tired of constantly recur-
ring panics, and that it was high time
that Congress legislated to correct this
evil. He stated it as hiss opinion that
panics would be obviated by the pro-
posed law, because it would segregate
the money reserves Of the country in
the twelve regional divisions instead of
their Capitalization in the great basin
New York-toward which all money
reserves now seem to flow.
Mr.. Underwood discussed at length the
charge of political domination over the
Federal Reserve Board. 1t was up to
Congress, he said, to decide whether the
government or the bankers should con-
troll the new system. He approved the
provision of the bill vesting control in
the government One of the principal
objects OF the law, Mr.. Underwood ar
gued. was to create a condition that
would make panics practically impossible.
To give the bankers control, Mr.. I'm
any President of whatever political faith
to administer the banking system in the
public welfare.
1T would be vitality important to any
administration" said Mr.. Underwood, TO
prevent panics. The stability of any adj
ministration would depend upon stahle
business conditions"
1t Is now assured that the banking
bill will not be presented to the House
until late in the month. The leaders said
last night that the present caucus would
continue all of next week. instead of
terminating tonight An adjournment
was taken last night until Monday. Cen
eral debate will be concluded Tuesday
and pending amendments will be taken
up for discussion late that day. The
leaders do not believe that a final vote
will be taken in caucus until Saturday,
August %. If their present plans carry
debate will be begun in the House August
% or August 26
Further consideration was given yes
terday to the Ragsdale-Henry amend
ments, which provide for the rediscount
of agricultural paper. As heretofore in
dicated the leaders are willing to compro-
mise on this proposition. but they will not
go the lengths demanded by the radicals.
The leaders are willing to accept an
amendment leaving 1t discretionary with
the members banks whether warehouse
receipts representing agricultural prod
ucts shall be discounted, and to the Fed
eral reserve banks whether such paper
shall be rediscounted.