Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-07-11
NATIONAL CIVIC LEAGUE SEES
MUCH TO COMMEND IN PRO.
POSED MEASURE.
LONG LIST OF DEFECTS
ARE POINTED OUT
Suggestions Made by League, Composed
Of Theorists and Bankers, For Per.
fiction Of BiiI-Measure Pronounesd
Coed Start Towards Currency Re-
form.
Especial correspondence

Washington, July 1.-THE National
Citizens League. which has been one
of the chief agencies for the promotion
of sentiment in favor Of currency re-
form and which tho it disciaimed being
committed to the -Aldrich plan, has
leaned heavily towards il, mas expressed
lis View OF the administration currency
bill. committee of the league has
made study of the bill and given ex-
preston to its views thru the official
organ of the league.
In general way. the league, whicn
represents the thought Of a good many
bankers and prominent public men and
in which Prof. J. L. Laughlin, of Chi
cago, is influential, finds many good
points in the administration bill and
much to criticise. 1t holds that II the
measure is to be regarded as founda-
ton on which to build a scientific and
practical banking system. 1t is a be-
ginning of promise. 1t holds that 1t
contains much that is excellent and
shows an understanding Of the funda-
mentals of banking and an apprecia-
ton of the needs Of the country.
Furthermore, it is the view OF the
league that it shows the influence Of
the Investigations and studies Of cur
IeiIcy reform which have been made in
this country in the past Ave years. On
he other hand, crudities and vital de-
ects, in the eyes OF the league, ap-
pear.
Defects Pointed Out.
The defects which are looked on by
the league as vital are:
The power given the federal reserve
board 10 compel one federal reserve
bank to discount for another.
The right given the federal reserve
banks to discount paper secured by ma
tional. state. county and municipal
tons Of banks
The absence Of any limitation or
check on rediscounts.
The limitation Of the new note issues
to $4,000, 600.
The requirement that enormous
amounts Of cash must be kept locked
up in the vaults Of the banks.
The absence Of any provision In the
bill for an advisory board thru which
the federal reserve board could be kept
IL vita! contact with agricultural. in
dustrial and commercial conditions and
public opinion thruout the country.
No provision that a proportion Of the
reserve holdings Of federal reserve
banks shall be gold
It il asserted that a most serious
error is made with respect to redis-
count in placing investment paper.
based on national. state, county and
municipal bonds, on precisely the same
basis as commercial paper. This. 1t is
declared. opens wide the door to in
f1ation and makes possible the COM
plete elimination of any elasticity in the
federal reserve treasury notes. It Is
declared the only possible way to pre-
vent imitation tr to conf1ne the issue of
demand obligations. either In the form
Of checking accounts or notes to the
discount Of commercial paper.
Two fundamental differences appear.
the committee Of the league asserts. be-
tween the administration bill and ad-
vocates Of scientific system Of bank
ing. One is in the fact the new bill pro-
vides for absolute political control"
The other difference concerns the elias
ITCHY Of currency and credit, fails to
take account Of the fact credit expands
and contracts thru banking operations
and provides for a treasury note cur
rency which, It is insisted. would not be
"elastically responsive to sound credit
% -sa al expression Of the presidents
The committee Of the league. which
studied the bill, is headed by q prom
inent business man Of Chicago. John v
| Farwell 1t is far from condemning the
new bill 1t says, in fact, the bill In
liz entirety has SO many good points
that II should not be allowed to fall
because of its defects. all Of which are
correctabIe."