The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-08-06

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NOW Will Come
CONTINUED FROM PAGE ONE.
proportions In The Senate. Should these
four Democrats stand together In defi-
ance Of q caucus dictum they could de-
feat the oil or dictate important changes
unless the administration II able to d. aw
support from Progressive Republican
ranks. Senator Hitchcock. It will be re-
membered. walked out Of the tariff eau
Gus when his amendment for a graduated
tax on the tobacco industry was rejected.
The Presidents supporters profess to
feel no great uneasiness over the situa-
ton in the Senate. They point to the
violent opposition which appeared in
their ranks when the President insisted
upon free sugar and free WOOL. II the
President could iron out that opposition,
they say, no should have little difficulty
in getting his currency bill through.
Mr.. Wilson still has. they claim. the
three means Of attack upon recalcitraht
members, all of which he used In the
tariff battle. He can call them up for
friendly conferences and urge them t.
fall in behind the administration; he
can evoke the binding power Of the eau
Gus. and then. as in the case OF his
lobby charges, he can center on op-
ponents of the measure the attention of
the country to an uncomfortable degree
And in the use OF these weapons. he will
have the cordial support of many Of the
strongest men in the party.
The Senate Currency Committee COM
prises seven Democrats and five Repub-
licans. With Senators Hitchcock and
O'Gorman in their present mood. the
committee would line up to against
reporting the bill to the caucus. and with
Senators Hoke Smith and Lea support
ing them on the floor of the Senate,
Hitchcock and O'Gorman could keep the
bill in committee indefinitely.
1t Is generally believed, however, that
Senators Hitchcock and O'Gorman, or
one of them, will not resist to the point
Of defeating the administrations pro-
gram. Friends OF Senator O'Gorman be-
lieve that rather than carry his opposi-
ton to that mark, he will take his
chances in the caucus. 1t is known that
many Democratic Senators will align
themselves against the measure in the
caucus.
In the Democratic caucus of the House,
Representative Underwood, majority
leader of the House. will be in charge
of the Presidents campaign. Chairman
Carter Glass, OF the Currency Committee,
will be glad to resign the fight tempo
rarity to Mr.. Underwood in the caucus,
as Mr.. Glass will have to take 1t up
again when the bill reaches the House.
Mr.. Underwood is in every sense OF
the term the majority leader. He is not
personally in favor of currency legisla-
ton at this session. but when the call
comes Mr.. Underwood will recognize the
titular head OF his party, and will bend
to his task with all his tact and power.
as he did when he put President Wilson's
tariff bill through the caucus and House
without material change and in record
time.
The currency bill as II will come from
the House committee carries a number
of important amendments. To all of these
President Wilson has agreed. and II Is
supposed that Secretary McAdoo has also
acquiesced, inasmuch as he and Mr.. Glass
were in close accord throughout the
process of framing the original bill.
Opponents of the measure declare that
these amendments are all for the benefit
of the bankers. and will further insure a
bank-controlled currency system. From
the talent arrayed for and against the
bill, II is evident that as a fertile field
for honest differences of opinion the tariff
question does not stand supreme
In brief. the important committee
amendments which the bill carries are:
]. Provision for an advisory council OF
bankers.
.. A Encouragement OF the plan for the
division of earnings Of central reserve
banks SO that member banks may reap
a large share In the form of interest on
their deposits.
3. Insuring a profitable discount rate
to central reserve banks which shall be
required by the Federal Reserve Board
to rediscount the paper OF other central
reserve banks.
l. Lifting the limit placed upon the
volume of government notes which the
Federal Reserve Board may authorize.
8. Providing for the return and
early redemption of Treasury notes by
requiring that central banks receiving
notes Issued through other central
banks must redeem such notes imme-
diately ut the Treasury.
8. Providing for the redemption, at
the end of twenty years. Of all govern
ment per cent bonds. such bonds to
i be redeemed at par and with accrued
interest.
7. Permitting national banks in re-
serve and central reserve cities to re-
duce their reserve from IS to 20 per
cent Of their deposits at the end of
sixty days, instead of at the end of
twenty-six months, as required in the
original bill.
s. Providing that the four members OF
| the Federal Reserve Board whom the
President selects shall be evenly d.
| vided politically, an acknowledgment OF
| the fairness of the criticism which has
been aimed against the Federal Reserve
Board that it is a political body. though
| the amendment does not meet the criti-
| cism.
| O. Authorizing national banks to ope-
| rate savings and trust departments to
| the extent Of acting as trustees for mort
| cages.
The last two amendments were tackled
| on at the closing session Of the commit
| tee almost without discussion, after the
| Ragsdale-Henry amendments providing
| for a system Of agricultural credits
! based on corn, wheat, and cotton In
| warehouses had been again voted down
| by the committee. The amendmen,
| authorizing national banks to operate
| savings and trust departments was Of.
| fered by Mr.. Buckley and came as a
| complete surprise to many members OF
| the committee.
Representative Medley. following the
| vote. gave out a statement in which he
| detailed his reasons for refusing the
vote for the measure.
Although Senator owen temporarily
\ was silencei by Senator Smiths de-
mand for the regular order" yester-
day, he gained the floor later long
| enough to make a brief reply to Sena-