New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-18
House Banking Committee Re-
jeCts Competitive Bidding
for Government Deposits.
SIDESTEPS A PUJO PROJECT
Majority Strikes Out of Cur
rency Bill Section Providing
for Emergency Issues
by Reserve Board.

Washington, July IA party platform
pledge was repudatcd and a reform rec
commended by tic Pujo Money Trust
Committee sidcstepped at spirited con-
ference of the Democratic members OF
the House Banking and Currency Com
mittee to-day.
The Democrats defeated, s to 3, an
amendment to the currency bill offered
by Representative Wingo providing that
there snail be competitive bidding among
the regional and reserve banks for gov
eminent deposits. Mr.. Wingo also urged
an amendment TO eliminate interlocklng
directories among national banks. when
was strongly recommended by the PuJo
committee. Action on the latter amend
mcnt was postponed, with all Indications
that It will be defeated by the 'conser-
vatives" of the committee who have
thrown re Pujo report overheard ana
who to-day rejected a section OF the bank
ing legislation plank Of the Baltimore
platform.
The Democrats struck from the bill sec
ton Il. providing for emergency issues Of
currency by the Federal Reserve Board
10 lOt amount VI Nill'i-i'Ni VIC W wv
value OF so-called stock exchange securi-
ties An issue Of this character was orig
inally proposed for times OF great hnan-
cial stress, but the committee placed
ban on all stock exchange paper.
Section Stricken Out.
The eliminated section authorized the
reserve board. when the public interest
required, to permit the reserve bank OF
the district "to discount the direct Obliga-
tions Of member banks. secured by the
uledge and deposit OF satisfactory socuri-
ties but In no case shall the amount so
loaned by a federal reserve bank exceed
three fourths Of the actual value OF the
securities so pledged, or ono-halt the
amount of the paid up and unlmpalFed
capital Of the member bank
Mr. Wingos amendments Indicate re-
ncwed activity OF the more radical Demo
cats in the committee and House who
want 10 hold tho Banking and Currency
Committee TO platform pledges and to an
Observance Of certain recommendations
Of the Pujo report The NAMES Of those
supporting the first Of Mr.. Winso 9
amendments were NlAll4'4A ~ '.ti.''' '''''''
Glass, but those who held out for the
platform pledge are said to have been
Mr.. wingo. Mr. Eagle and Mr.. Ragsdale
Mr. wlnso announced that his amend
ment providing that the government shaI
call for bids before depositing government
funds in the regional or federal reserve
banks was in accord win the party -
stand at Baltimore. Notwithstandins
this, the amendment was shown no quar-
ter and was dccisively defeated. The Bal
timore platform says on this point.
I'VE condemn the present methods OF
deposting government funds IN few ia
vored banks. largely situated In or con
trolled by Wall street. in return for po-
liticai favors. and We pledge our party
To- provide by law for their deposit by
competitive bidding in the banking insti-
tutions Of the country. national and state
without discrimination as to locality. upon
approved securities and .ubject to call By
the government"