The Washington herald., 1913-09-23
AGAINST HASTY
CURRENCY ACTION
Senators Reed and Hitchcock
Show Opposition to
Wilson's Wishes.
MEASURE MAY GO OVER
Failure to Pass Bill This Session Likely
. to Be Result-Samuel Unter-
meyer Gives Views.
MEASURE MAY GO OVER

The first outsPoken opposition by Demo-
Gratis in Congress to the legislative de-
sires of President Wilson broke out in
the Senate Committee on Banking and
Currency yesterday, when Senators Reed
and Hitchcock declared themselves
against hasty consideration of the bank
ing reform bill causing Senator Shafroth
TO fail in an effort to fix time for con-
cluding the hearings on the BILL which
have already been in progress for several
weeks
This attitude. it is said. is almost GER
tain to result in failure TO pass the cur
rcncy legislation at this session of Con-
Eress despite the fact that the President
has repeatedly indicated a determination
to use every influence at his command to
put the administration bill through at
the special session.
From the day on which the Senate COM
mittees hearings were begun Senator
Reed has consumed more time in his in
terroga tons than any other member OF
the committee. On the first day that the
Missouri Senator seemed disposed To join
Senator Owen in facilitating the hear
ings. the President ended the fight over
the St. Louis postmastership by nOminat-
ing Senator Reeds candidate But II this
WAS construed as-anything more than :,
coincidence. Mr.. Reed quickly dispelled
such construction by renewing his
lengthy crnss-eNaminatiOn of witnesses
the next day.
ConTerS with President.
On Thursday night last Senator Reeo
spent three hours at the White House in
conference with the President y few
hours before. Il; tie Senate committees S
meeting. h" had informed Chairman
Owen that he would not accede to any
Han for rushing progress on the hill
While ii has been known for weeks
that Senators OGOrman. Reed. and
Hitchcock were opposed to the Presi-
dents plan TO accelerate the action on
the administration bill in the Senate. yes
tcrday was the first time that the matter
was brought to an issue requiring def
mite stand by members Of the commit
tee Senator O'GoTman was not present
at the close of yesterdays session Of
tho committee. WHEN Senator Shafroth
asked that October I be set as the last
day for the hearings. but Senators Reed
and Hitchcock, Joined by Senators
Weeks. Nelson. and Bristow. the Repub-
Iicar members present. quickly an
nounccd their opposition to any plan for
Fastening action by the committee.
Senator Reed called attention to the
fact that lawsuits in the courts frequent
ly take weeks of consideration on a mere
point regarding the Interpretation OF a
law Or a question OF this kind. he
said. (which involves the very life Of
our commerce. We can certainly stay
here long enough to hear those authorities
ON the subject who have some sugges-
tions to offer. ! am not in favor Of any
rush action on this bill We have lived
for many years under the present sys-
tenn"
Volumes Of testimony.
Senator Shafruth called attention to
the fact that the National Monetary
commission had gathered volumes of
testimony ON the currency and banking
,rucStjon to which Senator Hitchcock re-
piled that perhaps the Senator from Colo
RADIO would he willing to have a similar
commission pass banking bill. Senator
Bristow said. Il want TO hear what the
men who will be affected by the proposed
system have to say. not what theorists
who write books think.
Samuel Untermyer. the New York law
YER who was the attorney for the Pujo
money trust investigation committee,
appearing before the committee yester-
dav. found so many objections to vital
features OF the bill that Senator Reed
was impeled tn mention the fact in sup
mort Of his objection to hasty considera-
tion Of the measure. The Interrogation
OF Mr.. lntermNeT brought out evidence
Of dangers in the bill which have not
been mentioned during the hearings on
previous days.
In general Mr.. Untermyer favored the
PRINCIPLES OF the bill. but when he at
tempted to show that the organization
Of the Federal reserve banks and the
powers vested in the Federal reserve
'oaTd would tend to prevent the eNer-
else of influences by big banking inter
ests, he became entangled in a crOss-fiTe
Of questions from Senators Reed. Hitch
cock. Bristow, and Weeks that indicated
that these Senators we're not impressed
with his arguments.
Mr.. Untermyer urged the necessity for
changing the provisions of the bill with
respect to the reserves of the Federal rs
serve banks. declaring the permission
ur lawful money to- bc carried as
-oscrve funds was faulty in principle.
Segregation al Reserves.
Mr.. Cntcrmyer urged that the reserves
hould he segregated in the Treasury of
he United States. instead of i'm the va
.iouS regional banks. This caused Sen
ltor Reed to call attention to the section
Il the hill which compels the government
. deposit all of its revenues with the
'cderal reserve banks.
Senator Nelson called attention to the
allure of the bill to require any Sc
.urity from the regional banks for these
government deposits, as he said is now
equired from national banks in the