New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-18
President Counts on Passage OF
Financial Legislation at the
Present Session of
Congress.
GLASS HAS BILL PREPARED
House and Senate Leaders and
the Chief Executive in Ac.
cord on the Principal
Features of the Pro-
posed Measure.
From The Tribune Bureau

w llSOn expects LHdl 'OupitutisiNr
financial legislation will be enacted at
this session and has so told the lead
ers in both Houses Of Congress. Sena-
tor Owen. chairman Of the Banking
and Currency Committee OF the Senate.
and Representative Carter Glass, pro-
spective chairman OF the corresponding
committee of the House, share this
expectation.
Mr.. Glass has practically completed
the first draft Of the bill which is 10
form the basis of legislation, and ii
will be considered Informally by the
prospective Democratic members of
the Banking and Currency Committee
before that committee is formally
created, with the hope that the meas
ure may be ready 10 submit to the
House Immediately following the pas
sage of the tariff bill.
The President, the Secretary OF the
Treasury and Mr. Glass are in entire
accord as 10 the fundamentals Of the
BILL which is to provide the long need
ed elastic currency and to effect Ger
tain other necessary reforms Sena-
tor owen is in accord in the MAN.
with the views Of the other three. al
though their full and final acceptance
will call for the abandonment Of some
of the radical opinions which Mr.
owen. formerly Nirginian, has
II ~
oklahoma.
Prospects are that the bill which Mr.
Glass has evolved will commend itself
To bankers and business men. as not
only embodying much needed reform,
but as a sane. logical. and, on me
whole. conservative measure pro-
vided, of course, Mr.. Glass is not COM
PEELED to yield too much Of his own
views TO those of his more radical col
leagues OF the House committee.
Features Of Glass Bill.
Mr.. Glass has not hesitated TO avail
himself of the best fea ures Of the bill
recommended by the Monetary Com
mission, many of which were merely
adaptations OF well known principles
of banking and finance. The central
control idea is preserved in principle.
but the central association will not be
incorporated and will be of a quasi
phlanthropic rather than money
making nature. composed of both
bankers and federal officials, with SO
much of governmental supervision as
is necessary TO forestall control by any
group of bankers or financiers whose
interests might lead them to act in
concert.
The principle Of recognizing credits
as the proper basis on which TO con
struct elasticity of the currency will
constitute the foundation stone OF he
proposed legislation. The important
responsibility of determining the quail
ifications of commercial paper offered
as collateral for currency will DE del
egated 10 the local. or zone associa-
tions. which will be governed by GER
tain well defined rules laid down in the
bill and guided in their application W
the central association.
Initiation of the currency will be care
fully guarded against by a system OF
taxes on currency issued against COM
mercial paper. and the same method
will be employed 10 assure the main
tenance of adequate reserves in the
banks.
One of the problems which may cause
some difficulty will involve the stpu-
lated reserve and the extent 10 which
this may be reduced TO meet excep-
tional demands for currency. Senator
owen appears 10 believe that under
abnormal circumstances the reserve
may be reduced TO a minimum with
safety so long as some means is pro-
vided for its restoration as soon as the
unusual demand subsidies. That the
financial leaders of the House will be
able to go as far as Mr.. owen in this
respect is a matter of some doubt and
in the final analysis it will probably be
necessary for tn. Senator 10 yield
something of his views TO insure har-
monious action.
Prospects Of Legislation.
AS to the prospects of accomplishing
legislation at this session, opinion diff
fers widely. Indications point 10 ex
peditious action by the House com
mittee and probably by the House.
The number of men i'm the House COM
petent intelligently TO discuss the sub
ject is very limited, and even the num-
ber who fancy themselves so is COM
paratively small. In the Senate, how
ever conditions are radically different.
Those conversant with the Senate are
convinced that il an attempt is made
to pass financial bill il will open the
fioodgates of oratory and the upper
house will be inundated.
The framing Of tisfactory meas
ure its passage by the House and its
approval by the Senate committee
would. however. constitute a triumph
for the administration, and the more
experienced Senator'S believe that, with
so much achieved. the President and
bis advisers would be willing 10 leave
the bill the unfinished business" on
the Senate calendar, To be taken up
after the convening Of the
regular session in December.