The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-09-15
ADOPTION
GLASS BILL
lGan Congressman Tells
" CurrsRcy Measure viii
Elllnihate Panics
0fNTS OUT NEED FOR
\ AN ELASTIC MEDIUM
4 xpIains Cause and Remedy Tor
Periodical Financial Dis
turbances
RAYMOND W. PULLMAN,
Tyoss Woshingt0a Bureau, NO. ~
nefronoiiton Bunk Building.

4 samuel W., Baakes, OF the Secohu
!: 1fichigan district. spoke. today IN su
a Yncacy OF the Glass currency OIL
which was formally reported 10 .ns
houaa on Tuesday. The Ann ArDor
z oonrressman outlined clearly the pro.
3 visIons OF the new bill, and explained
sSssrnt how the currency needs OF t"e
country would be met by the mea'
Il nura He believes that wheh Oon'
) ~roaa passes the act that the country
4 Sofk viii be safe from panics ana ina.
ss9he currency system OF the Uhiteu
y S1ates viii be elastic. providing io'
Sirrre amounts of money needed IN
B reoDmoying times during the fall. ano
4 cnfractinr during the periods OF the
!; $500 when the demand for money .
--latest. -
D The speech, in part, follows;
.srrc, Years the need Of new pap k.ns
~ ~ currency system in the UniteS
X XfStoo has been felt Inc os Iva more
ss.assH ana now, 1 believe. no think
b {S@e rsSr viii raise his voice in defense
II ~ cur present system OF uannnns csrt-
&ssrc :ronsv str,neency Under II We
u {S{sS Ma cvcr-recurring panics, and
& S1Icnly following our periods OF pro- IN
II f1f3ty We have had Ions orese ~ the
Y 1900 1istricts, tottering credit ana
&sSS5s.Ss failures In country 81
4 SS3chiess resources we have n nxs
4 Goful distress ana VIII" n.r,ods of
\; ~ ~shen loans are unobtainable.
;;8sz> .SsSc hc.Ea have been compelled 10
8 {nSe 20 cash checks for moneys av
Il 1SS4Sd With them, when factories have
4 ISsss cioaed because they were unable
|$3 y ~ y their hands. when business en-
~ {eSSinos have been cnrtailed and the
S%he1e country has passea .,avnatson.
;S Nv seen across the water Euro
1I2ss>sS nations, lacking our resources:
III keeping on the even Tenor % %
SSfnrm the functions for which they
Z 6fo Intended.
q t5ank checks are all that give any
4 lo1tteity to our gresent sy ru,nnnaous
K ,{ing on in the number Of checks
- SSi1~ through the hanks, and the
Y ~ At the same time are boarding
h tSac{ion OF our medium OF ex-
4 SSSxe. This 10 what causes business
3 - ration. with the ensuing want.
a AttOn and ruin. There
Money being furnished, the
b}41no would &c on. In It's usuai man :
~ Nance, hand in hand with more
". SsntinG. Z system which should
B { SswSS Z Tndden contraction in the
2snt of cheeks used. -
IN V1dSr eur present panking system a
part OF our banking resources
their way to the three central re.
- cifIes. New York. Chicago and
L6tis, and more especially to New
~, bSnH. ~ New York city had on
lit On sept l. 1911. $3.50. 100000.
~ " which was deposits OF banks
es1sr ssctioss e tn: country the
8Go of the other banks all over the
<n1Gy and loan them out to great
Xxx ~ call loans for Wall street
t1lnG Toe much of the money Of
Al1(tee - diverted to the use Of
~ 0treet specu1atOrs Let there be
ftty On Wall Street and raise IN
- lmmsdi9tely All over the country
14 N = cnrtailing OF local credit In
heal banks, and shipment OF
ss:s Ssr at, to ,n MsT s Yo5n. v And
~ they 6nd that the banks OF New
X H ero also wanting money and their
Q!ypg held there are almost useless
10 0f governmental control OF the
ln1 system should remember
& 70 now have private control. n
2lAss bill does nothing else. u
from New York control
S* 4Ae Qleoo bill. think, clearly car
XIDL Out tho purp0oeD 90 clearly set
u @s P S,'s .,es IN nvi HE currency
As xorth n other words by.
9epwy n HE rep0t TO congress
Ro& =. 1871, where he says:
~ pytncipel requirements OF a new
yQx ana currency measure are that
n nAeu provide practical Immunity
~ ~ q snjoycd BY the other ieadinr
Gal noti0ns: that IL shall abolish
1eeisuaLy recurrent ordinary
SeHSles In the money market
Keep relations between the
4X48o ana the business men OF the
ly almoet continuously at sixes
9exens; that u shall remove the
Aa1I enlarge and deveiop. the Pa
1e4 81 OUT foreign exchange sys..
Is mat ~ shall propesly develop the
r. M os1et mar taf that 4t-sAaH whole
1ay nnstut In. regulating the interest
ttughout the country: that ~ shaI,
~ end TO the tendency which
1po Our 0ank balances into specuia.
In ehennels: and save them Cor rexa-
tfaoe apd commences. TO meet the
~ y necessary to have an elias
&v.xsncy. available reserves and
peceesery provision and power
- permit and to check the expan.
A1ls ne bin inausurates an entire.
eystem OF banking and cur
1n this country. il will. I think
Az eject with but little disturb rs
nennlng facilities While as a
~ ~ system ~ new. the various
- ouv In other countries wen
S1tTe currency provided is per-
~ ~, ies cc snd iVo per cent Of
by the bank desiring the cur
h.