Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-06-17
Washington
w LETTER
- 800 a. F-r
CURRENCY LEGISLATION
BY q, q. WALKER
star stan corresponaent.
star Bureau.
Metropolitan National Bank BldE.,
WASHINGTON, June II.


Metropolitan National Bank Bldg.
WASHINGTON. June II.
President Wilson SCOTS at the hotel
corridor and Capitol lobby and cloak
room rumors that his currency and
banking legislation program is likely
to run into snags. He denies that
there is any discord in his cabinet on
the subject, and predicts that by the
time the proposed administration
currency bill is agreed upon members
of his own party will be fairly well
united for its passage.
When the President made state
nients to this effect to the newspapers
yesterday there was much head
wagging and brow-lifting among
members of Congress, both among
ultra-conservat'ves, who are fearful
that an administra ton bill win be too
radical and among the ultra pro
gressives who are afraid it won't be
radical enough.
Bryan Democrats Scoff.
Neither the President nor any of
his advisers have as yet made public
any of the details of the proposed bill
as it is likely to go to Congress. Much
of the speculation to date has been
based on current knowledge of the
bill proposed by Chairman Glass, of
the House committee ON banking and
currency. The Glass bill is under fire.
It is attacked by the, Bryan Demo-
Gratis as the Aldrich plan thinly dis
guised. The Glass idea of fifteen
bank reserve districts or associations
is characterized by its critics as just
fifteen times as bad as the Aldrich
plan for a single reserve centre and
association.
Developments of the last forty eight
hours, however, have made it appear
likely that the Glass bill will not get
very far and that the asset currency
scheme it involved with regional re-
serve districts, will probably be dis
carded.
Senator Owens Plan Favored
While the President has not ex-
pressed himself on this phase of the
subject, there is large and growing
sentiment among Democratic con-
gressmen in favor of the plan urged
by Senator Owen and Secretary of
the Treasury McAdoo for taking
away from the national bank entirely
the power to Print currency and for
having all currency printed by the
government.
Senator Owen, chairman of the
Senate committee on banking and
currency, is openly opposed to asset
currency or to continuing the bank
ing monopoly of issuing currency.
One bill under serious consideration
by the Senate committee proposes
not only a revision of the currency
laws and system, but the adoption
of a price-leveling standard, by which
a government commission would keep
watch on the daily prices of a hun
dred commodities, and the volume of
currency in circulation would be so
controlled by the government as to
maintain this average price at sta
BILE point.
The volume of currency, it is pro-
posed, would be regulated by the in
terest rate on currency issued to the
prices on the downward trend. the
government would offer currency at a
lower rate of interest. A glut of
money, and an ascending scale of
prices, would be corrected by the
governments demand for increased
interest.
To Destroy Monopoly.
The general purpose of this bill
would be to destroy the national
banking monopoly. Following the
action of the treasury department in
demanding interest from banks on
government deposits. advocates of
the proposed bill assert that there
Is no reason why the banks should be
given the privilege they now enjoy
of monopolizing the volume of cur
rency The issuance of money is a
purely governmental function, they
declare, and bank notes are really
money, inasmuch as the law makes
them legal tender for all debts public
and private. except the nayment of
customs duties on imports.
Under the present system. the ma
tionel banks buy government bonds.
and upon depositing these in the
treasury. are privileged to issue their
own currency to the amount of the
bonds, and lend it at whatever rate
they can get. Opponents of the sys-
tenn declare this is the foundation of
the money trust and that the banks
constitute a specially privileged class
which is allowed to invest its money
OF interest. with the government, and
still have II TO lend at further inter-