Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-25
SEE NO BENEFITS
IN CURRENCY BILL
Middle Western Bankers De-
clare II Doesn't Meet
Their Conditions.
REDISCOUNT OF PAPER
BEYOND THEIR REACH
Provision for Ninety Days Maturity,
They Assert, Bars Their Usual
Accommodations.

Further criticism OF the administra-
ton currency bill from the viewpoint
or the business interests of the middle
west was presented to the Senate
banking and currency committee by
Fendail g. Winston Of Minnesota. He
said the bill would be practically In
effective so far as the middle west Is
concerned, because only paper matur-
ing within ninety days would De
available for rediscount.
Paper OF this character. he said, Is
not available in his part of the coun-
try, where the greater part or the
business IL done on six-month notes.
Mr.. Winston was the last Of a delega-
cation Of northwestern merchants to
appear before the committee.
Defended by o'Gorman.
Senator O'Gorman defended the consti-
tutionality of the provision Of the bill re-
curing national banks to pay 10 per cent
of their capital into the regional reserve
hanks. Mr.. Winston objected that this
provision would deprive the banks OF
property without due process of law, but
Senator O'Gorman pointed out that II
was optional with the banks themselves
as to whether they entered the system
S0AA
clusion, would result in a contraction OF
the currency for some eighteen months
after It's passage and as soon as IL
reaches full working order will result In
a dangerous Initiation"
He suggested that the Aldrich-Vreeland
emergency currency BILL now in opera
ton. be continued. but be amended to
make It less oner0us on the banker ueslr-
Ing to secure emergency currency.
Curtis L. Mosher. secretary or the
c1Ih fsa.I
a brief showing the difficulty of forming
a regional reserve bank in the northwest
without including territory which would
make the organization unwieldy.
Wants Five-Year Farm Loans.
E. G. Hurlburt, vice president of the
Merchants Loan and Trust Company of
Chicago, discussed the bin from the
viewpoint of trust companies organized
under state laws.
Mr.. Hurlburt said that the present pro-
,ision in the bill allowing country banks
o loan % per cent Of their CAPITA and
surplus on farm lands for one year was
sot liberal enough. He sugges ed that
he country banks be allowed to place
a percentage of their time deposits
hitch form a large part. of their oan-
Bile funds in fve-year loans on farm
mortgages
tenn by which reserve and central reserve
banks would be required to carry Is per
cent and country banks II per cent re-
serve against demand deposits, and that
all banks be required to carry per cent
against time deposits.
Credit Men Criticize Bill.
Views Of the banking and currency COM
nittee Of the National Credit Mems As
ISOLATION, indorsing the pending demo-
cratic currency bill in principle, but
strongly urging numerous material amend
ments were presented yesterday after
noon to the Senate committee.
7 H. Trego secretary of the association.
submitted a brief outlining proposed
changes He suggested reducing the
number OF proposed federal reserve banks
from twelve to six, I'm order to strengthen
the resources of each; criticised the bill
failure to provide for representation of
bankers on the federal reserve board; OPP
posed making federal reserve notes gov
ernment obligations and urged that the
notes should be redeemed solely In gold;
declared the government should not COL
lect interest on its deposits with the re-
serve banks, and vigorously condemned
the plan to allow national banks to do
savings account business.