The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-09-29
HITCHCOCK HITS
CURRENCY BILL.
Democratic Senator Says 1t
Would Shake Bust.
ness World.
CREATES MONEY TRUST
Federal Reserve Board Could
Move Prices Up or
Down.
PREDICTS MANY CHANGES
President Faces the Severest
Test Of His Strength
This Week.
CREATES MONEY TRUST
PREDICTS MANY CHANGES

wAsH,xorox. Sept. 2s.-The coming
week 10 likely to see important develop
ments in regard to the Administration's
banking and currency bill.
The Administrati0n's advisers are be-
ginning to show signs Of impatience over
the disposition Of some Democratic Sen
ators to delay action on this measure
and the President viii take steps to have
an issue with these legislators.
On all sidss II 10 Acknowledged now
that the currency legislation will ba the
seversst tsst OF the Presidents strength
that hs has been called upon to undergo
and many Of his friends fear that fall
ure In this instance will tend TO detract
from the popularity which he has gained
through his victory on the tariff.
On the other hand Democratic men,
bses Of the Senate Committee on Bank.
Ing and Currency. who are opposed to
hasty consideration of the Gluss-Owen
hill. rsssnt the imputation that their
plea for delay 10 based upon poiiticai rsa-
ooaA '-
They lnGtst that their s1alA In favor Of
full and oomolsAs consideration OF the
I'm must not b construed ~ IN atti.
tuAe e unfrisndlinsss toward the wilson
AAministzaeion.
TAo TAbaaa SssaseRs.
! The nsnAsss Of the committee who
ass 0AaAhnG n ne way Of hasty CON-
sARAAA> -
leunsaska. Senator O'0oeman 0e New
Yssk ana 0snator RssA Of Missouri.
ehould thsv vote With Republican MEM
bers Of the oomutitts3 On say 'imsnd.
naat sagossesA. tAsy would b sbss to
oantyoe he s1tuaAlun.
1t has become plain during the several
weeks oe discussion Of the Glass Owen
biu bs6ore the senate commjetsa that
many Of the provisions Of the bill ~ II
passsA the House cannot survive In the
Sonata There - . clearly defined oppO-
sition 10 the retention Of the phrase
"gold or lawful money" In the redemp-
ton clause.
There 10 uncertainty - to the dssira-
bllity Of the 0Ovornmant assuming the
issuance Of the reserve notes. and there
10 also doubt a. to ~ proper powers
of the proposed reserve city banks and
central reserve banks.
The views Of the proponents Of delay
and further consideration are. clearly In.
dicatsd in an interesting statement given
by Senator Hitchcock to The Sun.
H. Aatcheeek's PreAistis..
senator Hitchcock predicts that the
Administration ball will BE- changed BY
the Senate In ''several hundred" paFttcu.
lars. He said:
80 far IN the hssrinss Ws have had
witnesses from various parts Of the coun-
try. some supporting and some severely
criticising the pending banking and cur.
rency bill. We have made . good deal
Of progress In analysing the bill and dis
covering IL defects ~ we'll a. its virtues.
The bill will unauestionably be con.
sidsrably and materially amended before
Il u reported by the COMMITTEES. ] think
q majority Of the committee hold an AZ
tltude similar to mine namely. deter.
mination to consider the subject with the
greatest care and with the fullest realisa-
tlon of the vast possibility for good or
evil In banking and currency legislation.
The banking and currency system Of
the United States has admitted defects.
but We DO not favor tearing up the whole
system In order to remedy these defects.
The DevelsDnsnts.
80 far ~ our investigation OF the SUBJ
Sect has gone. three facts have been
developed. In my opinion:
'First, that the bill, II II should pass
in ~ present FORM requiring the banks
70 provide 500. 100000 Of capital months
before they could secure any assistance
from the reserve banks. would tend TO
produce q contraction Of loans that 10 to
cay. In order to turn over $lo0.0o0.o00
in cash the existing banks would be com.
PEELED to call In loans. .
This would have bad effect on the Dor.
rowing public In the forty.eight reserve
cities and In the three central reserve
cities this condition would be greatly ag-
sravated because about $50 national banks
in those cities would be required to turn
over about $500. 100000 Of country bank
deposits to the twelve reserve banks.
ITO produce this money these $50 banks
would no doubt be compelled to reduce
materially their loans again and this
would produce q further contraction Of
credit and embarrassment Of the borrow
lng world.
0oDooeot OF Aneoooeot.
\ an very confident that we shall
amend the ball before 1t 10 reported from
eur committee 20 a. to avoid this great
contraction OF loans which. II II occurred.
would b . great damage to the business
word.
The hsastnss 20 far have demonstrated
% ny satisfaction. that II the bill wsrs
20 . pesssd in its present form II would
prosably produce . violent oontraction Of
credit, followed later probably by . wild
ln0n1ooo before proper balance 10
ssasAsd.
II heps also that our committee viii
decide to put important restrictions on
tho sewer OF ths Federal board which
0oaelsss6 ~ Fevrth PsSs