The Washington times., 1913-07-19
SEE TROUBLE AHEAD
OVER CURRENCY BILL
Democrats of Bank Committee
Take Day Off to Prepare for
Lively Sessions.

Facing lively, times next week when
the fundamentals" of the currency bill
are finally considered the Democrats
of the House Banking and Currency
Committee took a day off, today, and
did not schedule a conference. The
Democrats will confer again Monday
and the real test for the harmony pro-
gram comes when such features as
asset currency are reached.
Before adjourning over late Yesterday
the conference unceremonlously RECT
ed an amendment proposed by Con-
gressman Bulkley to prohibit national
banks from making loans to concerns
IN which their directors are interested
Ihe Bulkley amendment would have
prevented such loans, no matter what
tne collateral might be. Chairman
Glass SAID this meant dummy direc-
tors or bankrupted banks while Mr.
Bulkley eontended that it was improper
that director should be both a hor-
rover and lender.
The section relating to loans on i'm
proved farm property will next be con-
sioered by the committee Mr., Sell
oemridge raised the point that If ma
uonal banks may loan on farm lands
aney may also take city real estate
as collateral. The. argument started
mere and the discussion went over until
MONDAY, when other troubling prob
lens viii be tackled = :, :
Songressman Wingo has pending be-
e me Democrauc conference an
amendment TO prohibit interiockins d.
rectorales In the national banking sys-
tenn. rms reform was rccommended
by the Pujo committee, but the trainers
SI tne administrative currency have SO
LAT oscarded all Pujo Recommendations
and refused to reopen the Money trust
prope. as desired by Congressman Hem
~ ana his faction in the House.
the Nlhgo amendmen; probably Will
meet oeIeat. as did the prior amend
ment offered by Mr.. Wingo, providing
that Government deposits shall be given
70 nauonal banks under a competitive
oioolns system. Mr.. Wingo declared
the Baltimore platform called for COM
petitive bidding for this Government
money, and he proposed that all re-
gional and reserve banks should bid, the
deposits going to those offering the
highest interest rate. The amendment
was defeated. to g..
Stricken From Bill
Section Il, authorizing emergencv cur
rency issues on so-called stock ex-
change collateral has been stricken from
the bill. Such an issue was proposed
for times OF panic only. The eliminated
section authorized the reserve board
when the public interest required to per-
NIT the reserve bank of the district to
discount the direct obligations OF men,
Der banks, secured by the pledge and
deposit of satisfactory securities; but in
no case shall the amount 10 be loaned
by a Federal reserve bank exceed three
fourths OF the actual value of tbs Sc
curities so pledged or one-half OF the
amount of the paid-up and unimpaired
capital of the member bank"
Mr.. Wingos amendments indicate re-
newed ACTIVITY OF the more radical
rS t. rha raa nd Iona
VINO want to-hold the Banking and
Currency Committee to platform pledges
and TO an observance of certain recon-
nsendSt' 'ons of the Pujo committees re-
port The names of those supporting
the first of Mr.. Puio's amendments were
withheld by Chairman Glass, but those
who held out for the platform pledge
are said 10 have been Mr.. Wingo. Mr..
Eagle and Mr.. Ragsdale.
Baltimore Platform.
Mr. wingo announced that his amend
ment providing that the Government
shall call for bids before depOsiting
Government funds IN the regional or
Federal reserve banks was in accord
with the party's stand at Bait tmore.
notwithstanding this. the Wingo
amendment was shown no quarter and
was dec!sively defeated. The Baltimore
platform SAYS on this point:
We tOHnerln Ine present metnOGS
or depositing Government funds in a
Few favored banhs. largely stu
ated In or controlled by Wall Street,
in return for political favors, and we
pledge our party to provide by law
for their deposit by connective bid
ding In the banking institutions Of
the country, national and State,
without discrimination as to locality,
upon approved securities and subject
70 the call by the Government"
The Wingto amendments are regarded
in some quarters as an offshot Of the
program OF Mr. Henry. Of Texas, to re-
open the Money trust probe and also
to insist in the House that the Balti- |
more platform shall be strictly observed
in currency reform legislation. Mr.. !
Henry is frequently seen in conference
with the "insurgent" members of the
Banking and Currency Committee and
four members Of that committee are
understood TO be in general sympathy
with the Henry views