Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-19
Regarded as Possible That
Republicans Will Be Con-
suited in Preparation.
MAJORITY PARTY LIKELY
TO DROP CAUCUS POLICY
President Wilson Confers With
Senator Nelson-May Call in
Other Minority Members.

possibilities that currency bill will be
reported out of the Senate committee
unanimously. Failing that. IL is declared
altogether probable that bill can be re-
ported with such preponderance of COM
mittee support as to cause 1t to appeal
strongly to the approval of the Senate.
These statements are predicated upon
the sponsors of the bill being amenable
10 suggestions of amendments proposed
by both republicans and democrats, and
abandonment of the idea of making the
currency bill q partisan caucus measure.
In fact, that practically has already been
given up.
Democratic senators were gratified yes
terday TO learn that there was DISPOSE
tion among their republican colleagues
on the committee to meet them in fair
discussion of the merits of the blu look
ing to an agreement. 1t was this deyel
opment which prompted the belief that
1t might be possible, under a process of
give and take, to frame a bill which the
committee could report unanimously.
President Wilson has further cleared
the pain Tor currency reform Al the Sem
ate tnr ouSh conferences opened yes lerday
with the repuD leans On the senate com-
mlttee now IN charge OF the bill. AS q
result OF a conference with Senator Nei-
SON. which II is believed will be followed
by talks with other republicans, the
President has received assurances that
the republican members are not holding
up legislation. nor trying to impede ac-
ton on the currency bill in the Senate.
Suggestion From Outside Sources"
The opening of direct negotiations with
republican senators, Ii Is understood, was
decided upon by the President because
OF suggestions from outside sources
that they Were endeavoring to delay
action in committee. While no effort has
been made to fix a date for the reporting
or the BILL II is understood the President
has been assured that progress In the
committee will be as rapid as possible
and will depend only upon the length of
time required for discussion and agree
nent upon vital features of the currency
reform plan.
Efforts to bring about recess Of Con-
Gress appeared to have abated somewhat
ana House leaders apparently have given
,ip any hope OF getting away from Wash
ington for any stated period.
1t Is expected the committee will spend
at least three weeks after October %,
when the hearings will be ended, in dis
cussion and amendment of the bill.
That the bill must be subject to wide
and even radical amendment has already
become apparent to its hackers and to
sist upon such course to an extent and
republicans will demand it.
Many Amendments Pending.
II Is said there are some 300 amend
ments pending before the committee at
this time, many of them, of course, des-
tined never to come even to a vote. But
there are few vital amendments which
viii be voted upon. and some that must
be accepted by the administration il the
bill Is TO get out of committee.
Amendments have been suggested from
a multitude OF sources, running the gamut
from high Observation-Disclosures that
much-used and awesome phrase may
.nsan-to suggestions by laymen.
Ii was Frank a. Vanderlip, president
Of the National City Bank of New York,
who first opened the eyes of the COM
nittee to the fact that the bill is not
being absolutely opposed by the more inn
portant banking interests of the coun-
try, and that in some respects it is re-
garded favorably in quarters popularity
supposed to be unalterably hostile.
Mr.. Nanderlips testimony impressed
the committee by its frankness that he
was requested by the committee to sub
NIT suggestions OF amendments in writ
ing. In accordance with that invitation,
ne has forwarded to the committee a
searching review of the bill. with many
recommendations for advisable amend
ments.
Vanderlip's Recommendations.
He recommends increa sing from 5000
30 to Sl5.000.oo0 the minimum capital
of each federal reserve bank, stating IF
the number OF federal reserve banks is
reduced TO four. no federal reserve bank
should be started with a capital of less
than S15.OOo00O. There are obvious OBJ
jections to any federal reserve bank hav-
ing capital as small es S.O0oO0O There
would be pretty certain to be member
banks possessing stronger banking power
than the federal reserve bank in so small
d district"
He proposes to eliminate from the fed
eral reserve bank organization commit
tee both the Secretary of Agriculture
and the controller OF the currency, and
would increase the number TO five EN-
powering the President to appoint four
of the members in addition to the Secre-
tary of the Treasury. He offers this
amendment on the ground that the work
of the organization committee will be eX-
ceedingly onerous for at least year and
that If cabinet officials are placed on the
board they must necessar ly delegate
their authority. Instead of requiring the
organizati ton board to designate federal
reserve cities within ninety days, he sub
Stitutes ''as soon as practica bic.
He would reduce the minimum nunrver
OF reserve cities TO be designated by SUBJ
stituting -four" for twelve" He eX-
plains that on economic grounds one cel-
trail bank is most desirable, but If that
is deemed impracticable that not over
four reserve banks be organized. Prac-
tically half the arguments in favor OF one
reserve bank apply in less degree to the
organization OF four as against twelve
There is one argument In favor of more
than one central reserve bank, which IS
that various discount rates can be estab-
lished In various parts of the country.
Mr.. Vanderlp says he Is not altogether
convinced that that is desirable thing
to do. however.
Wants Meaning Made Clear.
II is recommended by Mr.. Vanderlr
that the language of the bill be clarified
so that 1t would be plain that the presi-
dent of a federal reserve bank need no,
be a director. 1T would be improper
10 have the president of federal re-
serve bank connected directly or indi-
rectly with a member bank" he states
He should be permanent officer. Sc