Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-13
SUGGESTS POWERS
STANDARD
Senator Thomas Asks Confer
ence on Basis of Parity Be-
tween Gold and Silver.
MAKES PROPOSAL IN
SENATE RESOLUTION
Senator Cummins Begs Democrats
Not to Plunge Financial World
Into Confusion.

! y proposal that the United States cau
/ conference of the powers to consider n
| worldwide basis of parity between gold
and silver was brought in the considera-
| tion of the administration currency bill
today, when Senator Thomas, democrat.
! introduced a resolution proposing that
| President Wilson be authorized to invite
England, France and Germany. whose
monetary systems are based on the gold
standard. to participate, and that five
delegates be appointed from the United
States when any two European nations
had accepted the invitation.
preamble set forth that rates of eX-
change between gold standard countries
and the silver nations of South and Cen
trail America fuctuated violently, always
to the disadvantage of the gold standard
countries.
Senator Thomas contended that his res
olution called for consideration in con
nection with the currency bill.
The currency problem in any one
country cannot be satisfactorily settled
without considering currency conditions
throughout the world said he.
Efforts for an agreement for an early
vote on the bill met with little success
today.
Urges Caution on Bill.
Attacking the constitutionality of the
administration currency bill, Senator
Cummins OF Iowa today made a plea to
the democratic senators not to plunge
the financial world of the United States
into the confusion which will surely en-
sue If the validity of the proposed law
is to be determined in the courts
Senator Cummins insisted that the
federal government had no constitutional
right to take the property of the national
banks as Tow organized and place it in
the federal reserve banks. as the bill
proposes tc do by comp elling the banks
entering the system to subscribe % per
cent OF their capital stock to the stock
OF the reserve banks. He said that he
believes the settlement of this question
will In the end be taken to the courts
and that the courts must say whether
the proposition is fair to the banks
Would Keep It Out of Courts.
II do not say that the Supreme Court
of the United States will say that this
proposed action is unfair and Illegal"
said Senator Cummins. '.but + am ap-
pealing to the democratic senators not
to confront, the country with the hazard
and peril OF having this matter taken to
the courts when it is so easy to avoid
doing so.''
to questions that had the national banks
not been already established the pro-
posed conditions might have been insisted
upon by Congress without question. But
these banks are already operating and
established under the charters given by
the government. Some of these charters
have many years to run. he pointed out
He argued that Congress could not leeis-
iate SO as to take their property from
them and place it in other institutions
without due process of law
Senator Thomas referred to the de-
cision of the courts to the effect
that the legislature of Oklahoma was
entitled to legislate compelling the state
banks to contribute to bank guaran-
tee fund. Senator Cummins however
argued that this was not similar to the
action proposed in the pending bill
Attempt to Fix Date for Vote Fails.
Attempts last night by Senator Owen
chairman of the banking and currency
committee. to get unanimous consent of
the Senate for vote on the bill tonight
Monday. Tuesday, Wednesday or Thurs
day failed absolutely. Senator Bristow
objected strenuously to any such agree
ment, and Senator Owen, waving his
arms in a gesture Of despair. resumed his
seat.
During the debate yesterday evening
Senator Cummins proposed amendments
| to the owen bill providing that the MEM
elect four instead of six of the directors
and that the federal reserve board should
elect five instead of eight He explained
that he believed the people instead OF the
bankers should be given more power
over the money of the country
The Iowa senator declared that neither
the Owen nor the Hitchcock bill was to
his liking. He said he preferred to amend
the present laws as to prohibit ma
tional banks paying interest on demand
deDOSitS. tA fhr.
any money on speculative stock exchange
dealings.
q. s. Notes as Emergency Currency.
| To provide for an emergency currency,
Senator Cummins said that he would give
| authority to the government to issue
| United States notes for definite period
These notes would be issued by officials,
| he said, organized into bureau of the
Treasury, or into q central bank the lat
! ter being preferable.
Senator Stone assaiIed the positions
taken by various bankers organizations
toward the bill. He charged that the
conferences of bankers at Boston and
Chicago. which proposed substantial
changes in the plan, were controlled by
the Wall street group" and mentioned
A. Barton Hepburn as the moving spirit
| of both conferences.
The great banks,' he said. have built
up great financial olgarchy which we
propose to destroy by this BILL
Senator Smoot of Utah denied the
charge that the banks of the country
We're "curtailing business in order to
bring about financial distress"
1T is unfortunate" he added. that
a political platform declared against
the central bank. / feel certain that
\ a majority of the senators on this floor
| certainly those who have studied this
question, are convinced that a central
| bank would settle the financial prob
lens of this country for a hundred
years to come"
Hitchcock Plan Indorsed.
| Senator Sterling of South Dakota read
a number of letters from South Dakota
bankers indorsing the Hitchcock plan
He said the Hitchcock provision to al
low the regional bank to discount a GER
| to;n ovro,,ut of Siy ruOnthSs panar ,yo.i,