Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-09-09
ADMINISTRATION DIlC RgNo&rs
ED TO sousE " oLAse SANK J,
sNo coaaaarrxG.
WILL REcriFv ogFgcrs "
PRESENT aANs<lMo SYSTEM
Majority msmbsrs sst Fssth chansss
Necessary In Banking Laws, In Ne.
port Accompanying Msssuro - Re.
pue'ieans Object % Compulsory
subseription to steek.

eration currency a bill as an.
proved by the { Alto caucus. VA.
reported to q % today by cnair-
man Glass luminous report. In.
oiuding 9 ical discussion OF the
theory bill accompanied tha
meass - ting forth the views Of .h.
democraS. OF tho committee.
Representative Hayes. OF California,
presented report from tho repuhli-
cans. criticixing tho measure and pro.
posing many amendments.
The majority declares tho bill Eli
intended to bring about many changes
In the banking and currency System OF
the United States. and 20 correct
many evils that have had slow auti
deep rooted growth. It aims at tho
rectification at tho essential defects OF
t'io present System, nlfho II docs nor
seek to make all the Innovations that
might from an ideal standpoint ba
deemed desirable"
Reviewing the arguments against
the so-called Aldrich plan outlined by
the national monetary commission and
against all central bank plans aug
gested. the report says:
Necessary Change In System.
after looking over the whole
ground and after investigating vari-
Gus suggestions. the committee on
banking and currency Is nrmly Of the
opinion that any effective reform In
banking must include tho following
fundamental elements which in con-
siders necessary:
Creating Of Joint mechanism for the
extension Of credits to tho banks. with
| sound assets and desire to liQuidate
! them. and to meet commercial. aSri-
cultural and Industrial demands on the
part OF their clientele.
ultimate retirement Of tho present
bond secured currency with suitable
provision for the fulnllmont Of gov
ernment obligation 60 bond houses
| coupled with tho creation os salts
factory flexible currency to take lts
! place.
Provision for better extension Of
Ame1ican banking facilities IN foreiGn
| countries with the end thRt our trade
abroad may be enlarged md that our
business mon in foreign countries may
obtain the aid they require In the
transaction OF their business.
| beyond these cardinal and simple
1
deemed 1t wise Mt this time to mako
any recommendations. save in few
particulars 1t has favored the amend
men OF few provisions In the ma
| tional bank act with n view OF
| strengthening at points wherc exper-
! fence have sho Hn tho necessity OF nj.
teration.''
Reservs Fund Of S5ooooo,0oo.
\ Nra ntn nj ayra..
tom with chief responsibility for tho
various panics OF the past half cen
tury. the report sets forth that under
the proposed law the federal reserve
banks TO bo created under this bill
would have available at least $780,
900 900 OF reserves in cash.
| This" said the report would
create a reservoir OF liquid funds far
| surpass,ng anything OF similar kind
ever available In this country hereto
| fore 1t would compare fnvornbly with
| the resources possessed by governments
banking institutions abroad.
The committee reviewed the bill Sec
| ton by section. setting forth the prob
I able operation Of the law. In tho MI
| nority report on the bill tho repub-
licans pointed out what they thought
| 10 be the weaknesses Of tho measure
They said they found tho democrats
f, Of The committee 80 bound by theif
! caucus action that they could not con.
slider amendments to the bill which, l.
adopted, would have eliminated its un'
sound and questionable provisions.
| Republican Objections 80 Dill.
They suggested that the provisions
com pelling national banks to sub
scribe for the capital stock of tho red
eral reserve banks on pain OK for-
| seiture Of their charters were OF
doubtful constitutionality and wholly
unnecessary II the plan of the Dill II
n good one. they said, the banks would
| gladly participate. II not. II the banks
refused TO enter the system. "all bss-
,ness would be disastrously eftccted.
Tho republicans declared this pro-
vision making the new federal reserSe
notes obligations OF tho United
states" practically creates ccntra.
hank They urged that tho powers OF
the central reserve board were too
vreat and that there Is great danger
a. IN. A,I. .s now drawn that the
hanl.,ne business Of tho country may
be used for partisan pohtica sdVaat-
age"
r.ncy question were set forth In re-
/ nor, on the Glass bill filcd severai
aavx ago by Representative Lindhersh
~ Minnesota, the progressive member
OF the committee.
,.s>.A;1> 0senlvasa