The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-10-27
CLASS LEVELS HIS
GUNS ON BANKING
BILL SUBSTITUTE
Points to Inconsistencies in
Plea of New York Franz
er of the Measure.
SECRET SESSIONS
BEGINNING TODAY
Attempt Will be Made to Complete
Drafting of Amendments to Admin.
istration Measure-Senate Support.
ers Not Hopeful.

istration Measure-Senate Support.
ers Not Hopeful.
Washington, Oct. s7.-A reconstruc.
tion Of the administration currency
bill begins today behind closed doors
In the senate banking committee. The
issue Is clearly drawn being the bill as
passed by the house and the Central
bank plan proposed by President Van-
derlip of the National City Bank Of
New York.
Whether the administration bill
backed by President Wilson'S express
ed uncomprising opposition to tho
Vanderlip plan. and renewed opposi-
will emerge triumphantly from the
senate committee or whether middle
ground will be found between the two
measures. in the next question in the
situation. The senate committee be-
gins work with majority Of its
members admittedly favoring the VAN
derlip idea. Administration support
ers. vowing that fact. declare that
such a measure could not be passed in
the house, and that the committee
therefore must work with the admin
istration bill as a basis. preceiving
it's fundamentals IL currency legisla-
tion is not to be Indefinitely delayed.
Chairman Glass Of the house conf
mittee. one of the trainers Of the adj
ministration bill. issued statement
last night on the Vanderlip plan. it
was practically as follows:
In Red Herring Business.
'I have somewhere read that in
England-or maybe 1t was In Scotland
they used to have an annual fox
hunt. at. one stage Of which. with
Reynard Hardpressed. red herring
was drawn across the trail to divert
the pursuit and give the fox another
chance. OF course, what popularity
country is not foxy. nor would any,.
body dream of suspecting Mr.. Van
derlip of being in the red herring
business.
Yet it happens to be fact that the.
house currency bill is destined to cor
rect the. radical defects Of a system
,under which concentrated wealth ru1-
ed the nation: and. likewise. IT hap
pens to he a fact that the vandErlip
hour OF congressional consideration
with the hope Of indefinite postpone
n1eut of currency legislation should
the scheme be given serious attention.
Delays Legislation. ..
"If Mr. vanderlips scheme was not
actually designed to delay and frus-
trate currency legislation, it will IT.
given consideration, have that incvita-
bic effect.
"on July 81 MIR. vanderlip wrote
me a letter voicing the protest of
himself and other bankers against
certain provisions of the house bill
and ] wonder that he has so soon for
gotten with what vehemence he as
sailed that feature of the measure
which involves government control.
lie declared the principle to be 'prac-
tically inexpcdient and fundamentally
wrong The objection said Mr..
Vanderlip 'is not to the powers grant
cd to the federal reserve board, but
to the hands in which they are placed
asserting that both financial and po-
litical history furnish ample illustr;1-
tion Of the danger the incffectiveness,
the insldeauacy of politically appoint-
cd boards
Must Have Practical Men.
'Mr. Vanderbilt went to the cx-
trcme of saying:
off slch a board as is proposed
were formed by appointing the seven
leading bankers Of the United States
whoever they may bc--and these men
became dissassociated from the daily
conduct of actual affairs and senate in
Washington, directing at arms length
the operation of several reserve banks.
they would very rapidly lose their
power to direct wisely. 1t seems to
me that the only proper method Of
control must he through board COM
posed of practical bankers. in direct
touch with current business. who are
selected for short terms by the mem
bcrs.
I'm direct contravention Of this DO
sition. Mr.. vanderlip and his Wall
street assistants come here at the last
hour, flinging consistency to the winds.
proposing politically appointed
board, not one member of which is
to be selected by the stockholding
United States. MFR. vanderlip in July
objected to the long term of seven
years provided by the house bin. but
now in October ne would stretch out
the term to fourteen.
"Mr. vanderlip, in his testimony be-
fore the senate committee, differen-
tiated his bill from the house bill in
several important features, among
them:
".Tniform. nationwide discount
rate instead of regional discount rate.'
Three months ago MT. tanQerllp, Ill
his letter highly commended the
house bill for it's superiority to the
Aldrich scheme in the very particular
III which he now condemns the house
bill in contrast with his own plan.
I again quote from his letter Of July
"a:
".ln one way the system of regional
reserve banks has an advantage over
the national reserve association pro-
posed by the national monetary COM
mission. The plan for a national re-
serve association provided that there
should be a uniform rate Of discount
throughout the United States. The
present plan for regional reserve banks
contemplates that the rate Of dis
count will vary in different sections
of the country at the same time. Such
variation Of rate is sound banking
''If variation Of rate as provided in
the house bill was sound banking in
July, how does 1t happen that uni
formity of rate in the Vanderlip
scheme is sound banking in october?
Wanted Present Plan.
I'm his letter to me last July Mr..
Vanderlip accentuated the utter un-
desirability. in his view. of any radi-
cal departure from the existing ma
tional bank act warned the house
committee that unless legislation
should be made attractive to the ma
tional banks they would quickly aban-
don the svSfen, He WAS against do.