Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-22
IS ADVISED
NOT TO RUSH BILL
No Pressing Need to Hurry
Currency Legislation, Is
View of Banker.

A plea and q warning against too great
haste In the enactment Of the proposed
new currency law were made by Alexan-
der Gilbert, president Of the Fulton Mar
kex National Bank Of New York. to the
Senate barking and currency committee.
Hfs warning was issued after q number
OF hypothetical questions had been asked
him, showing that the members OF the
committee were by no means yet satisfied
In their own minds as to amendments
which should be made to the pending cur
rency bill.
/ Time u not an essential matter In
this legislation" said Mr.. Gilbert. The
old system IL working well at present
There are no panleky conditions. the
country Is In excellent Ananciai con-
dition. business Ia good Il Wall pay you
10 take Alt tho time necessary TO work
out the details OF this legislation.
=. tsh to take this opportunity, however,
% thank you All fur trying to give 9
oank Of reGiscount. We have needed
such hank ever since the panic OF
1879"
Defends Clearing House.
Mr.. Gilbert declared that the New York
clearing house had never to nis knowledge
forced out q hank or refused admission
to q bank which was worthy Of member
ship In the clearing house. He said that
the clearing house, of course, had rules
and regulations which must be complied
with.
Senator O'Gorman asked Mr.. Gilbert
whether he thought 1t would be adj
vlsable to place a tax on the exporta-
t.oA I'll eOiu AIVIn THIS cvunLry, as {.
check upon too great expectation. Mr..
Gilbert declared ne thought such tax
artificial means which would interfere
with the natural course of business.
In answer to questions as to whether
the pending bill or any bi4 winch ne
Gilbert declared that once q panic
started 1t would have to work itself
:uA. lie aaia. iioWeser. tnat II would De
possible to take precautions against
conditions winch would lead to panic.
In Case Of Suspension.
Senator Hitchcock Of Nebraska asked
what would happen should one Of the
regienai reserve banks be 50 conducted
as to allow its reserves to drop far be-
low the amount required by Law. and 1t
snould be suspended by order Of the fed
eraf reserve board, as provided in the
BILL Mr. Gilbert declared that the re-
suit would be disastrous. Senator Hitch
cock and other members of the committee
pointed out that no provision was made
In the bal for the continuance Of business
should the reserve board suddenly order
place It In the hands Of a receiver Sen
ator hitchcock said he thought this q
great defect in the bin.
Senator Nelson suggested that the
oil might be 80 amended as 70 turn
the business Of the suspended bank
over to one Of the 1.-Two regional banks
remporarily. Mr.. Gilbert said, that he
thought the federal reserve board
might take charge of the suspended
banks AFFAIRS and run the institution
until 1t was on its feet again.
For q Control Bank.
Alexander Gilbert, president Of the Full
ton Market Bank Of New York. was be-
fore the committee yesterday afternoon
Mr.. Gilbert urged the adoption OF con-
troll bank, but failing in that he urged
the reduction OF the number Of federal
rsgional reserve banks fixed by the Dill
at twelve.
Mr.. Gilbert presented table showing
the resources available for the organiza-
ton of six regional banks. to be located
Ia New England, the eastern states. the
south, the Mississippi valley, central west
and the Pacific coast. He urged that
thA bill be amen0eQ 20 allow tuc OSSuhS
representation on the federal reserve
hoard. To avoid stringency. which he
said would follow shifting of bank capt.
tai and deposits to the proposed federai
reserve banks he proposed that this SHIFT
inr be done gradually In small INSTALL
ments.
No Guaranty for Note Issue.
The proposed note Issue. he believed.
should not have a government guaranty.
They should be notes Of the federal bank.
with 80 per cent gold reserve back OF
them. and commercial paper payable only
IN so,d. Senator OGorman asked him
why the provision had been made to
guarantee these notes.
'.Since I have become acquainted with
the bili," replied the banker. Il have
come to the conclusion that there Is an
influence In the cabinet In favor OF gov
eminent guarantees
"Is IL sound?" persisted Senator OGor-
man.
II do not think so. We should concen-
trate in the regional reserve banks all the
gold we can and compel them to keep 1t
there"
BANK MERGER REJECTED