Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-13
DECLARES BANKERS
NOT |NCONSP|RACY
S. D. Scudder Tells Senators
There Is No Effort to Block
Currency Bill.
IN FAVOR OF MEASURE,
BUT WITH AMENDMENTS
Head Of Richmond Trust Company
Given Griliing Before
Committee. Z

The theory. advanced by some OF the
administration leaders. that the bankers
or the country have been In a conspiracy
to defeat or delay currency legislation
was severely punctured today. when 8.
d. Scudder. president OF the Richmond
Trust Company. recognized as the only
real. dyed-in-the-wool insurgent at the
bankers convention In Boston, frankly
admitted before the banking and currency
committee OF the Senate that he had seen
no evidence whatever OF a conspiracy on
the part OF the bankers
Mr.. Scudder was put on the stand by
Chairman Owen today in advance of the
country bankers committee, which Is
here to oppose the administration cur
rency bill as 1t Is now framed
Senators O'Gorman. Nelson and Weeks
asked Mr.. Scudder point blank IL there
had been any evidence whatever of
conspiracy OF the bankers.
mo, none whatever" was the reply
There was apparently a desire on the
vention to get the report Of the commit
tee cr1ticising the administration bill
adopted without delay. They seemed TO
want to rush things"
I'm that they were acting very much
like persons high up in Official quarters in
ator Weeks. and a general laugh was
heard.
Put Through Grilling Examination.
The evident desire to place upon the
stand the insurgent banker. with his tes-
tinaony in favor OF the administration bill,
before the adverse criticism OF the coun-
try bankers committee was heard. was
distinctly distastefui to some members OF
the committee and they proceeded to put
Mr.. Scudder through a grilling examina-
ton.
Several times Chairman Owen suggested
that Mr.. Scudder be excused so that the
country bankers could be heard. But Sem
ators O'Gorman. Hitchcock and Others
refused to relinquish the witness until
they had completed their cross-examina-
ton.
Mr.. Scudder. in answer to questions.
told the committee that he had not
been a member OF the country bank
ers' convention in Boston, because his
trust company had a capital of $1,000
600, and the country bankers meeting
was confined to those whose banks had
not more than $25O, 200 capital
Your bank Is not a national bank at
present" said Senator O'Gorman. Would
you go Into the system provided In the
pending bill?"
II don't know" was the reply OF Mr.
holders would have to answer. i should
be inclined to 60 In II the bill was amend
ed In some respects"
Then you think that the bill should be
| amended" asked Senator C'Gorman.
YES" replied Mr.. Scudder.
Admits Amendments Necessary.
Senator o'Gorman pressed Mr.. scud-
der for an answer as to whether the
country bankers would be aided in any
way by entering the system provided
In the bill as 1t passed the House. Mr..
Scudder was compelled to admit that
unless there were material amend
ments. particularly with reference to
the time OF the commercial paper 40.
cepted for rediscount. the country
bankers would not be benefited.
You think that the time should be
O'Gorman.
Yes, perhaps so,'' replied Mr.. Scu6der
Then what Will become of the elastic
ity which this bill is supposed 10 give
the currency" asked Senator O'Gorman.
Mr. Scudder told the committee that he
had become an ''insurgent'' at the gen
eral convention in Boston. the annual
convention Of the American bankers
The whole question involved in the
controversy, answered Mr.. Scudder.
eminent shall control the currency.
believe that the government should
control IT. / said that / believed the
bankers would receive certain con-
cessions from the administration IL
they did not go to Washington and de-
mand that the very heart OF the bill
be cut. out But that If they did make
such demand they might be gwen
harsher treatment than the present bill
gives them"
Asked what amendments he would sug-
gest 10 the bill, Mr.. Scudder replied that
he thought per cent OF the capital in
stead OF 70 per cent should be demanded
as a contribution to the regional reserve
banks. He said. too. that he thought
many OF the details Of the system should
be left to the federal reserve board in
stead OF being placed in the bill.
Bankers Visit President Wilson.
The delegation of country bankers, thir-
ty-five in all, representing nearly all the
states of the Union, headed by George
w. Rogers of Little Rock. Ark. were in
the committee room all the morning.
They went to the White House to see the
President at 2;30 o'clock.
In an interview before taking the
stand. Mr.. Rogers said the bankers
were In favor Of prompt passage of q
currency bill. but that unless some
changes were made in the pending
measure IL would mean the elimination
OF many small banks. He denied that
the small bankers were being used by
the large ones 70 further the interests
OF the latter. The meeting In Boston.
he declared. I'm which 1000 small bank
ers from all parts OF the country con-
demned parts of the currency bill as
1t now stands. had been 'fn no way
inspired by bankers in the large cities"
A possibility that the currency bill may
be under consideration in the Senate dur
ing the month Of January was recognized
in the Senate today. Senator Hoke Smith.
one of the supporters of the adm.nistra-
ton bill, objected to an agreement by
which the Senate from January to Janu-
% would consider a constitutional amend
ment giving women the right to vote on
the ground that IT might interfere with
the currency bill.
Senator Ashurst asked consent for
an agreement to take up his constitu-
tional amendment January s and 10
vote before January 20.
while hope-the currency bill will
be disposed of before that time" said
Senator Smith. II must object TO any
a oreernent nccnnv TINA until ba