New-York tribune., 1913-10-09
Administration Defended.

The addition OF this paragraph as an
amendment 10 the resolutions was pro-
posed AT the afternoon session by ex-Rep-
resentative Joseph H. ONeil. Of Boston.
Mr.. O'Neil was one OF several speakers
whose remarks had been audibly hooted
from the floor during the forenoon. He
and Representative Thomas {. Mac
Rae, Of Arkansas together with II. a
Moehlenpah, OF Brewster, Wis, president
OF the Wisconsin Bankers Association
had rallied TO the defence Of the admins
tration. which hal been attacked by most
OF the previous speakers.
The acting president. Arthur Reynolds.
Of Des Moinos. Iowa, In his annual report
had criticised the currency bill. and ex-
Representative Ebenezer J. Hill, OF Nor
walk. Conn. had attacked the good faith
OF tho administration and introduced
resolutions against the bill. when ex-
Representative MacRae took the Aoor.
His attempted defence OF the government
was treated with derision.
Mr.. O'Neil presented an amendment OF
thanks 10 the President and Congress.
Il want an amendment 10 the Glass bill,
he said. Don't mistake me. But II you
gentlemen think you are going 10 win a
compromise from Congress II you 20 be
fore them I'm n spirit OF hostility tell
YOU YOU will get nothing" When the
delegates had reconvened after recess Mr..
O'Nel's amendment WAS carried.
The resolutions as finally adopted were
as follows:
Resolved, That We approve the work
Of the currency commission. and that We
ratify and indorse the action Of the CHI
cago conference. the conclusions they
reached and the recommendations they
made.
Resolved That We urge upon Congress
the wisdom and necessity OF ncorporat-
ing into the proposed law the amend
ments recommended BY the Chicago con-
ference. all Of which have been elabor-
ately presented 10 the Commi"ee on
Banning and Currency OF the United
States Senate. in which body the pro-
posed law is now pending Any law
assed by Congress, in order 10 be ef-
fectlye and realize I'm full measure the
hopes Of those who are seeking currency
reform, must command the approval and
enlist the cooperation OF the banks OF
the country, both state and national
Resolved That we commend the
President. the Secretary OF the Treasury
and Congress for their efforts TO create
I'm this country an elastic as well as a
safe currency, and pledge them our
hearty support for the enactment OF
proper legislation to that end
con1unitfpa "a n
nounced tonight the nomination OF Ar
thur Reynolds. OF Des Moines. the pres
ent first vice-president, for the presi-
dency. The committee also named W. a.
Law. OF Philadelphia. for first vice-presi-
dent
The Commissions report. signed by A.
Barton Hepburn. It's chairman and
chairman Of the Chase National Bank OF
New York. James Is. Forgan' vice-chalr-
man. OF Chicago. and twelve other mem
hers of the commission. was read by
Mr.. Hepburn. 1t follows. In part;
"The banks are required 10 subscribe to
,ha federal reserve banks an amount
eoual 10 20 per cent OF their capital. one
half of which must be paid In at once
,ho other half being subject to call. This
o. ,o no taken over and placed under the
management OF corporation In when
the banks have not only minority rep
rescnta,ion but very limited voice In
decd In return for the capital thus APP
nropriated tho banks receive certificate
which cannot be sold. assigned or hy-
nothecated, over which none of the usual
rights of property can be exercised. The
hanks are obliged to make this subscrip-
ton or be dissolved. Charters have ever
boen regarded in the nature of a contract
and II is doubtful II. under our Constitu-
non. Congress can take away the charter
Of a bank In this summary manner. not
because the terms Of the charter have
been violated by the banks but because
the bank management might refuse to
make a coerced investment such as the
pending measure provides.
There is no provision whereby a bank
which subscrbes money to the capital OF
the federal reserve bank can recover the
same. except by liquidation either volun-
tarv or enforced A bank is given max