Arizona republican., 1913-10-22
BOTH SIDES OF CURRENCY BILL

periodical issued by the National Citizens league, an organization composed largely of business men of the central west and formed for the promotion of sound banking sys- tenn, and which is considered to voice the views of the bankers of the same section on the currency bill, recently published the following bulletin on the owen Glass bill:
 Told in newspaper headlines, bank ing reform legislation is in a condi- ton of hysteria. The bankers in convention in Boston are reported as uncompromisingly opposed to the Glass bill it passed the house. Opposition in the senate committee on banking and currency is report ed as bitter. It is surmised that the senate itself is opposed to the bill and to acting on it during the pres ent special session. It is assumed that the Wilson administration is standing pat on the Glass bill
 As a matter of fact, turbulent as the proceedings in the senate com mittee seem to have been, much pro gress has been made since it began it's deliberations.
 The senators now have a good un- derstanding of the measure and of l1e pOlnlS WIleIe amendment IS nee essary or desirable.
 President Wilson is giving practi- cally all his time to the currency bill. The administration is not standing pat on the Glass bill. The president is endeavoring to learn just what amendments the senate committee de- sires, and those that are reasonable in his view will have his approval.
 The bankers, as an organization, do not desire to kill the Glass bill. They hold it to be the first piece of constructive banking legislation that has come out of congressional committee in a generation. They do not want it to fail. They want it to be amended and improved, so that the law which is to be the basis of the new system may be sound and on it may be built a superstructure of perfection.
 This is what everyone desires.
 The Glass bill contains many pro- visions which will bring much-need- ed reforms. In operation it will bring such necessary results as:
 l. Mobilized reserves.
 2. Elastic credit
 3. Elastic currency.
 4. An open market for commercial paper
 ,. Control of gold supplies.
 6. Foreign banking facilities.
 It will:
 l. Prevent panics
 ?. Relieve business.
 3. Keep commercial money from the call loan market
 There is no contention that these results are not the ones primarily sought in any scheme of banking re- fxAr-11a ric1n a fa bring these results would be utterly inadequate.
 But in framing the pending bill, many things had to be considered, and to meet some political prejudices and strange theories, the line of strict economies was not always followed.
 Instead of one central bank under close government supervision, twelve are proposed. The democrats have declared hostility to one institution. This provision weakens the scheme. It jeopardizes it's success. Probably twelve reserve banks of $5,O0O0 900 or more capital each could not be or ganized The number should be re- duced to five or less at the start It might be increased later.
 Compulsory exchange at par should be eliminated.
 The bill makes the note issues the obligations of the government It makes them redeemable in gold or lawful money. It is a long step for ward to provide a note issue that is responsive to and will fluctuate according to commercial demand. It is going back fifty years to make such a currency the ultimate obli- g ton of the government.
 All notes should be redeemable in gold. The experience of the whole world is justification for this demand
 The bankers want a voice in the general management of the system. They are asked to furnish all the capital. It is logical that they should ask minority representation on the board of directors which shall con- trol it.
 The bankers object to being forced into the system under penalty of financial loss. The conclusive argu- ment against force is that unless the system is obviously strong enough and sound enough to meet the coun- try's requiremen ents.
 Possibly the bankers, in their com prehensive list of suggested amend ments, have leaned to selfishness. Generally their suggestions are i'm provements. The bill would be bet ter and stronger if their suggestions ~~>~>~~~~~~~~~~~~~~~~~~~ ~~~~~~~>~~c~~~~~~S~~~~~