Evening times-Republican., 1913-11-06
i CURRENCY Bill
BANKERS MEASURE!
CRITICIZED AS DOMINATED
eY BANKS.
POWER OF CONTROL HELD
BY REGIONAL DIRECTORS
Strong criticism Breaking Out in
con,mittss-PuhIic Ownership With
Private contro, Charged by eristow,
Reed and Others Sentiment in
House Said to 30 Undergoing Change
Ispecial correspondence.l

Especial Correspondence
Washington, Nov. 6.-The currency
bill situation in the senate banking
committee has reached q point where
the administration measure is being
assailed as a bankers bill. providing
for a bankers bank system to be DOM
mated by the banks.
Close students of the bill before this
nave criticised the bill as bankers
measure which meant no relief to the
public. But now such criticisms arc
breaking out in the committee. Unless
the bill is radically changed, much Will
be heard of such criticism from this
time on. not alone in committee but IN
the senate.
Where Power Lies.
The fact that under the adm1nistra-
ton bill the real power Of control IS
going to rest in the boards of directors
of the regional reserve banks and tnat
by this bill, as it passed the house. the
bankers are in complete control Oh
these regional directorateS Is Just De-
ginning to draw fire from those sena-
tors who do not believe the White
House measure 10 what 1t purports 10
be and do not think 1t is going to give
the public any real relief. Those who
criticise the bill along these lines point
out that. while nominally the control
of the system rests in the federal re-
serve board at the head. government
body, there will be in actual practice
few times in which the central board
will venture to override the wishes OF
the regional boards because the region
al board can set up the claim that they
are on the ground and familiar with
conditions in their locality.
The criticisms which threaten to be-
come numerous Of the extent of bank
ers' control Of the administration bill
broke out in the senate committee
when Senator owen. chairman. ex-
pressed himself favorably to public
ownership Of the regional reserve sys-
tenn but wanted the PROVISIONS Of the
bill as 1t passed the house with respect
to control left unchanged Senator Hol"
lis. another administration senator.
voiced the same idea. This led to the
Inference the White House had indicat.
ed to these senators that 1t would be
willing to accept such plan.
Thereupon, hot fire Of dissenting
opinion was poured on the proposition
SO far as 1t related to control after the
method Of the administration or Glass
plan. aseH14s
Public Ownership With Private Control
Senator Bristow. Senator Reed and
others pointed out that this meant
public ownerhsip with private control.
Senator Bristow was emphatic In
saying he would never consent to such
a plan. He pointed out that under the
house bill, the banks would control SIX
Of the nine directors Of each regional
bank; that these directorates would DO
the real dominating forces In controi
Of the proposed regional system and
much more potent than the federal re-
serve board; and that unless the re.
gional directorates were dominated by
the public the bankers would actually
run the system. Senator Bristow made
it plain he wanted no form OF disguised
banking control but real public con-
troll and that he would Insist not alone
on the federal reserve being q govern.
ment body but on the regional
directorates being public bodies. not
controlled by the bankers. A number
of others on the committee took the
same view.
What will be done about this ques-
ton has not been settled. It can not
be voted on before Wednesday at the
earliest, tho committee having ad-
journed over election day. But It IL
regarded az improbable that the plan
Of allowing the banks to dominate the
regional boards will pass muster in the
committee, or in the senate. Powerful
arguments will be raised against sys.
- q 10
a banking control down at the bottom
where the real authority will reside.
House Sentiment Changing.
This opposition will be the more In
tense because it is coming to be more
and more clearly understood among
senators and the public that the house
bill provides for q bankers banking
system. In no sense does 1t provide
system whereby the general public can
have access to the regional banking
system to secure loans or have paper
rediscounted. More and more emphasis
is being laid on this in discussion OF
the bill in senate circles. The receipts
Of the treasury are to be deposited IN
the reserve banks and to permit them
to be under banking control instead
of public control Is certain to stir up no
end Of adverse comment No surprise
will be caused II the administration
percedves that 1t will not do to insist
on bank control Of the regional direc-
torates and retreates from this feature
Of the house measure.
No further serious talk IL heard Of
the committee making q report by Nov.
10. 1t IL considered doubtful now II q
report reaches the senate by Nov. is.
The talk of getting the bill passed in
the special session in still kept up In
administration quarters but In senate
quarters there is no real expectation
that bill can be passed before the
regular session.