Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-03-21
Pressure by Business Interests
for Early Action May.
Hasten Legislation.
QUESTION MAY ARISE
AT THE EXTRA SESSION
Bankers, However, Comforted by
knowledge of Emergency Fund.
Tariff Revision an Issue.

! Confirmation of the intimation in The
Star several days ago that the new Con-
gress may be impelled by force of cir
cumstances and conditions to take up
currency reform at the extra session
seems at hand. Daily pressure is being
brought to bear from many sources upon
the powers that be and the powers to be
in behalf of prompt consideration of the,
| subject.
| Senator Owen, chairman Of the newly
created Senate committee on banking and
| currency. and Representative Glass,
| prospective chairman of the like COM
| mittee of the House, are already con-
| ferring over the outlook. Senator Hoke
Smith is in constant touch with financiers
! of national repute. ready to lend his eff
| fort and counsel to a settlement Of cur
! rency problems. He is also in communi-
cation with House leaders
| New York shows signs of Tightening
| the string around it's money wallet, and
| is wearing that troubled look which high
finance assumes when times appear
| squalIy. little cloud no bigger than
a mans hand is sufficient, however, to
cause New York to take in reefs.
Faith in Emergency Fund.
F1nancIerS are cOmfOrted by the eX-
istence of the emergency currency law,
through whose wise provisions $500, ,O0O,-
600 in currency will be Immediately
available to banks in case of a pinch
That law does not expire until June
80, 1914. and in the meantime it will
undoubtedly be extended for another
six-year period.
1t is probably not a matter of general
knowledge that the $500, ,OOO,0 900 in cur
rency have actually been printed and
are in storage in Washington trust
company's vaults, placed there fer lack
of storage room in the United States
Treasury. The fact is known to bank
ers. however, and the mere knowledge
that such a sum is within reach, the
books and nothing required but eX
change of formalities and swift express
trains to put 1T in circulation, Is of it
self reassuring to banks.
Washington financiers had most to do
with framing that emergency legislation,
and the National Capital has currency
association of bankers. These same men
are in constant communication with
statesmen on Capitol Hill. and of course
are familiar with currency conditions and
needs in the great money centers Of the
country.
However with all the safeguards
against panic thus far provided. there is
general acquiescence in the opinion that
congress HluSL at HI early udg take up
the broad question of currency reform.
Business Demands Action.
Business will not be content to rest
upon emergency clauses; 1t wants the
situation improved SO that emergencies
will not be always imminent" 1t is de-
clared.
When possible forthcoming considera-
ton of currency affairs is discussed. the
subject must be differentiated from the
recommendations Of the Row defunct
money trust" Investigating committee.
The recommendations of that committee
relate for the most part to administration
of national banks. regulation or loans
conduct of officers and directors with re-
spect to borrowing and all that sort Of
thing.
empowered and did not touch the root
of the currency issue system. That SUBJ
ject was jealousy guarded by Mr.. GLASS,
the incoming chairman or the new COM
mittee and was withheld from the scru-
tiny of Counsel Cntermyer and the COM
mittee.
Mr. Untermyer was anxious to get hold
of that question. but Mr. Glass succeeded
in confining him to the plain terms OF
the resolution of investigation.
In that connection it is reported that
an effort may be made to revive the
money trust committee. with enlarged
powers of inQuisition over the ahalrs of
national banks. The House leaders. how
ever. are understood to be opposed to the
project, especially il the regular banking
and currency committee is to take up the
general question of changes in currency
laws. They do not want two nnancial
probes going at once.
Waiting on Wilson.
Financier-statesmen are awaiting elab-
Grafton of President Wilson's suggestion
that he will lend his aid to legislation ex-
panding the authority of national banks
| so as TO do business in foreign countries.
There is general admission of the desir-
ability, and. indeed the need, of some
policy of financial expansion
The fact is not overlooked by far-see-
ing statesmen at the Capitol that the
nations foreign trade must be given
some compensation and increased facili-
ties for the expected curtailment or
American industry by reason or tarin
| reduction. if the reduced tariff works out
| that way.
The Taft administration, following the
protective idea, foresaw a slump in manu-
! featuring industries as result OF tariff
reduction and the Chinese loan policy
was the result of that view in part. Pro-
| tectionst republicans claim that lowering
! the tariff so as to admit foreign de
| goods will naturally operate to cut off
| just that much production by American
mills for consumption in the home mar
| ket. Every ton of British and German
rails brought in will mean just that much
1 less turned out by American mills, they
| claim, and so with cotton goods. woolens
and the thousand and one miscellaneous
| articles of manufacture.
Republican Contention.
| The republicans contend that unless
| home production is to be decrea sed, a
market must be found by the output dis
placed by importations. China is regard
| ed as the great field of exploitation for
| commerce of all kinds. and access to it,
! according to Secretary Knox's plan, was
| best facilitated by closer financial rela-
| tions.
| President Wilson thinks there is bet
/ ter way than shat suggested by the Knox
| plan to extend American trade Congress
| is very much Interested in knowing the
/ details of his "open-door' policy and his
method of expanding American financial
and commercial influence abroad.
Expects Currency Legislation.
| Il believe there will be currency legisla-
ton at the coming special session of
Congress" said Chairman Owen of the
Senate banking and currency committee
| today
| Sanafor O1rap said fhat hia rsoruniff ae