The Washington times., 1913-06-20
MONDAY Is SET. FOR
CURRENCY MESSAGE
After the Presidents Reading,
Measure To Be introduced
BY Glass, of Banking Board.
tcontinued from Ffrst Page )

paved the way for the reading by Presi-
dent Wilson Of his address.
The two houses will assemble in the
House chamber a, half hour before the
President arrives.
The Presidents message will be
brief. 1t was read this morning by him
to the Cabinet, which met at the White
House to discuss the proposed iegisla-
ton. Prior to, the Cabinet meeting,
Secretary McASnn closeted with
the President nearly an hour, consider
ing the bill.
The same spirit of confidence which
the President has maintained regard
ing the chances of the bills passing
before Congress adjourns, is still ap-
parent at the White House. The
Presidents friends believe that the
vindication which the President has
obtained for his attack on the tariff
lobby has stirred up public opinion
generally throughout the country. and
that this same public opinion will back
him up in every demand he makes for
action on the currency bill
Is Compromise. q
The Administration plan for cur
-ency legislation. as disclosed by
Chairman Glass. of the House Bank
ing Committee, represents a compro-
mise between the original Glass plan
and the believers in the doctrine of
Government issue of notes. ~
Experts who studied ii today de-
clared that 1t was no more than an
emergency currency measure so far
as the provisions for note issue are
concerned. In this respect. it is not a
bill. as was expected. for the basic
reform of the currency system.
Reflects Bryan.
IN one salient sfeature-that Concern
ing the absolute Government control Of
the Federal reserve board, which is to
be hereafter the note-issuing body, the
views of Secretary Bryan are reflected.
As predicted exclusively in The Times.
the secretary of State won his fight for
the elimination OF bank representation
on this board. Tht Mr.. Bryan's influ-
ence was sufficient to hold up this i'm
portant provision of the measure was
first told in The Times Of Sunday last.
There followed the White House con-
fe-ences early this week, and the much
changed bill was finally whipped into
shape last night.
Three changes of prime importance
were made in the bill since 1t was pre-
sumed to be complete" on Monday
last. They are:
1.-The Federal reserve board will con-
sist of seven instead of nine members.
The banks viii have no representatives
on the board. Earlier drafts of the
bill provided for three bankers This
brought the Bryan fear that the board
might fall under bad influences. The
President will name four members of
the board, and the remaining three will
be the Secretary of the Treasury, the
Secretary of Agriculture, and the
Comptroller of the Currency.
Bone of Contention.
2-There is to be no gradual but en-
forced retirement of the existing bank
aote circulation, nor of the per cent
United States bonds. The failure of
the trainers of the bill to retire the
present circulation is at variance with
platform declarations of the party and
constitutes another controversial point
to be threshed out in Congress.
The retirement provision OF the bill
was stricken out only yesterday. So
was the provision for the conversion
OF the two per cent bonds. used as a
circulation basis, into three per cent
bonds without the circulation privilege
senator Owen is said to have been
largely instrumental in eliminating
these sections from the bill
3.-Every national bank is permitted to
continue its note issues as at present
and there is authorized in addition,
under the restriction provided in the
bill an emergency issue of $500 co0, 900.
This additional issue may be made on
prime short term commercial paper and
other liquid collateral offered by the
Federal reserve banks. This means
asset currency" and it also means
trouble when the bill is taken up for
debate and amendment. ...--.r
Digest of Corrections.
In making public the revised currency
bill, Chairman Glass, of the House
Banking and Currency Committee, pre-
pared a digest the corrections In which
show the vital changes, which were
made In the bill during the forty-eight
hours preceding thee release Of the bill.
These corrections followed the White
Wednesday, which came UNEXPECTEDLY
after Mr.. Bryan had talked over cur
rency with the President. --
The bill and digest was then re-
vamped In accordance with the confer
.ence mandate, but even in its present
corrected shape the Glass digest carries
a veiled expectation Of other changes
in COMMITTEES. Mr.. Glass says the bill
which he introduces will be gone over
in detail for such alterations as a ma
Oh the todIlhlDB anu currency
Committee OF the House may care to
make" - e ~sE 49,
TIE bill lis a great disappointment
10 advocates OF currency reform who
hoped to see a basic change In the note
issues of the country. who believe that
a modern, scientific asset currency
should be worked out which would
require no artificial stimuli to make II
rise and fall with the needs of busi-
ness. - e - -
It is also a disappointment to those
who have been urging that the evils
shown to exist in the Pujo investiga-
lion should be attacked In the bank
ing and currency legislation.
II will be urged in its favor that II
provides for much more effective utiliza-
ton Of the reserves than at present.
Stormy Times Ahead.
However, in view Of the strong feel
ing in Congress that legislation should
go to the roots of the problem; in view
Of the objections IN many quarters to
Government control as distinguished
from banking control: and In view OF
the varying opinions in both houses as
20 details OF legislation. there are
stormy times ahead for the bill. Indi-
cations are, that II will be torn to
pieces and new measure differing in
many particulars will be evolved either
az the special session or next winter.
A summary of the provisions of the
Administrators currency bill is as fol-
lows:
The purpose of the bill is to furnish
comprehensive revision of the cur
rom