The Washington herald., 1913-06-21

$1,000
that II appeared to be possible under
present conditions for disturbances ir
business to enectuate without anything
being basically wrong in the channels
Of trade or industry. He thought a sys-
TEN should be established that would
automatically prevent a recurrence OF
troubles that had beset the country In
the past
This was the time to act, in the opin-
ion Of the President. While he did not
say SO in terms, Mr.. Wilson Is SAID 10
have given his hearers to understand that
he believed the country would regard the
party as negiectful II 1t failed to include
in its programme of accomplishments this
session a modern banking and currency
law fashioned along the lines of the bill
now undV consideration
President Wilson will nave another con-
ference with his legislative colleagues
from the House next week. This VIII be
followed by conferences with members OF
the Senate. who are Immediately 'respon-
sible for legislation of this character. BY
this means the President is said to be
hopeful Of effecting an understanding that
will result in the enactment of bank
ing and currency law before this session
of Congress is brought to an end.
Representative Henry Is Hostile.
Sentiment in the House and the Senate
is hostile to the bill for various reasons.
In the first place, the leaders are op-
posed to action on such a measure at
this time. Then there is an element that
is opposed to asset currency. the plan
around which the Glass-owen bill is
written. 1t is already apparent that there
ha mis- cd nnpnsiffnn the meas
ure within the Democratic party in the
House. Like opposition is expected to
break out in the Senate.
Representative Henry Of Texas, who
wants the Money Trust inquiry renewed.
is openly opposed to the Glass-Owen bill.
He has a following in the House, and
certain members of the Banking and
Currency Committee are in harmony
with his ideas Mr.. Henry is preparing
a bill which he will offer as a substitute
for the measure prepared under the di-
rection of President Wilson and his off,
cial advisers. The Henry bill will pro-
vide for an enlargement OF the gold re-
serve, government note issues to be
based upon II, whereas the security for
the notes proposed to be issued under
the terms OF the Glass-Owen bill is gild
edge paper with a reserve in the banks
of % l-3 per cent in gold. Mr.. Henry
takes the position that note issuing is
the sole function of the government, and
that IL is high time this business was
taken away from the banks.
While Democrats are not disposed to
criticise the Glass bill publicly, they re-
gard il as defective in many particulars.
Complaint is male against the failure TO
provide for the retirement of the present
national bank note circulation. II is
known that this omission was opposed by
Chairman Glass, but that he was over
ruled by the President, who acted on the
advice. ii is understood. OF Senator owen.
chairman of the Senate Committee on
Banking and Currency. 1t is altogether
likely that before the bill gets through
the House II will be amended so as TO
provide for the refunding of the . per
cent bonds on a per cent basis, and
the retirement of the existing national
bank note circulation.
Objection also is made TO the COMPOST
ton OF the Federal central board. The
administration bill provides that this
board shall be purely a government body.
The suggestion is made that the banking
community is rightly entitled to repre-
sentation on this board. and amendment
OF this import will be offered in the
House. and in the Senate if they fail in
the House.
The chief menace to the plan of the
administration to put through banking
and currency legislation at this legisla-
ton is the diffidence of the leaders. They
may be spurred along by President Will
son. but their judgment from the begin
ming has been against any attempt to
pass legislation of the magnitude pro-
posed coincident with tariff revision. The
attitude of the House leaders is reflected
in their determination not to make the
Glass-Owen bill. or such bill as may be
reported from committee, a caucus meas
ure. 1t is known that the leaders take
the position that 1t would be hazardous
to attempt to tie up the party by means
of caucus. They have so informed the
President The radicals, led by Repre-
sentative Henry. know that the leaders
are at heart opposed to any legislation at
this time, and this has encouraged them
in laying their plans to block the pro-
gramme of the administration. 4.
II present plans are carried out, the
Glass-Owen bill will be taken up in
or Wednesday. The first busi-
ness to be transacted will be embodied
in the Bulkley publicity resolution. Just
how long IL will take the committee to
adjust this problem is a matter OF specu-
lation. II may be disposed of without
delay. but there is at least a prospect
that there will be a long-drawn-out con-
troversy over the measure. If things go
well. the committee will buckle down to
work on the bill by Wednesday. Just
when a report will be made will depend
upon the influence of the administration
and the House leaders with the COM
mittee.