The Washington herald., 1913-09-27
"YANKS" DO NOT
LIKE MONEY BILL
New England Bankers Point
Out Faults to Currency
Committee.
NO RUSH Is APPARENT
Members of Senate Body Studying
Measure All Take Their Time
Save Chairman.
NO RUSH Is APPARENT

NV England had her innings before
the Senate Committee on Banking and
L"rrenc.- yesterday. Representatives of
a number of banks In Yankeeland ap-
peared and were introduced to the COM
mittee by Senator John ". Weeks Of
ssachusetts. Vice President Charles
Z. Blinn, of the >fational Union Bank Of
Boston. was the first of the visitors to
resent a statement.
Mr.. Blinn told the committee that the
Massachusetts, Bankers Association, of
which ne was president, opposed the BILL
He said that the opposition was quite gem
eral throughout tho New England sec
ton and that his conviction on this point
was pI-dicated upon the result of q
series Of inquiries instituted ny the bank
ers' association.
Mr.. Blinn presented figures TO show
that the organization of the proposed
regional reserve banks would cause tenn
porar'iy at least a contraction of credit.
Under the pending plan. central re-
serve city banks would be forced to sup
ply 100000 of cash as soon as they
went into business. which they do not
now nossess,' said Mr.. Blinn. TO secure
this cash the banks will have either TO
rediscOunt paper or to call in their
loans. Existing prejudice against redis-
counting, a very general sentiment
anon; the banking fraternity, will op-
crate tC force the banks to call in their
loaES with a resultant contraction OF
credit
Thinks Demands Heavy.
Blinn also registered an objection
TO participation by the regional reserve
banks in the general open market for
commercial paper. He considers this pro-
vision a disadvantage to the lesser finan-
cial institutions and TO the member banks
generally.
F. A. Drury, president Of the Mer-
chants National Bank. of Worcester.
presented his views on behalf of the
country banks of New England. He
is also opposed to the bill. Mr.. Drury
said:
While some Of the banks in the lesser
cities favor some of the provisions of
the bill, the belief is very general that
its demands are too heavy upon the
country bankers. I.thnk there will be
a disposition 10 surrender national char
ters and become State trust companies
or State banks, remaining out of the
newly-Created system altogether. if the
bill in its present form becomes a law"
Ii. II. Bowman, president of the
Springfield National Bank, Of SPRING
field, Mass, spent considerable time on
the witness stand. He was interroGated
the feature Of competition between the
regional reserve banks and the member
banks which he feared would be created
by the bill in its present form. Senator
Hitchcock has repeatedly expressed an |
adverse opinion to the ability and
propriety of this feature of the bill He !
is the undOubted leader Of the faction |
IN the majority OF the committee which !
opposes immediate action.
The purpose of Mr. Bowman's an
pearanCe for the New England proup
was to urge the elimination from the
bill Of the projected twelve regional
reserve banks. Mr.. Bowman also on
poses the not" issue by the general
government, and insists that the
phrase or lawful money" be stricken
from the bill
Gold and nothing but gold is the
basic money of every tirst-class power
in the world" said Mr.. Bowman. We
settle our foreign balances in gold. so |
why not treat ourselves as suuarely |
and as honestly as we treat our for !
eisn correspondents?
No One seem in Rush.
Mr.. Bowman insisted that there ex-
listed in New England no sentiment ad- !
verse to the Federal control OF the |
central banks. In point of fact, the |
favorable sentiment as to this general |
feature of currency reform is predomi- !
nant in the New England States
Justin f. Varney. president of the |
First National Bank, of Lawrence, |
Mass. concluded the group of New |
England witnesses for the day. He |
addressed the committee in opposition |
to the bill on the ground that it dis |
turbs and disrupts the relations ex-
isting today between the country |
banks and their larger city COrre- |
spondents.
The Banking and Currency Commit !
tee is holding no executive sessions, |
and, although reasonably well attend |
ed by the members, there seemingly is |
no disposition toward haste, or even |
speeding up the processes of discus |
sion by any of the members, except |
the chairman. After a short parIey at
the close Of the days session, the |
committee agreed to meet thirty min
utes earlier on Monday, at the re-
quest of Senator Shafroth, but this will |
not be accepted as a precedent for fu-
ture early gatherings.