New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-24
GLASS AMUSED" BY
CRITICS OF HIS BILL
Joint Author of Currency Meas
ure Declares They Disagree
on Vital Points.
CALLS THEM INCONSISTENT
Some Bankers, He Says, Com
plain of Possible Contraction,
and Others Fear Imitation,
Both Being Wrong.

From The Tribune Bureaul
Washington. June 23.-In reply to criti-
cisms made against the currency bill, of
which he is a Joint author. Representative
Carter Glass, chairman Of the House
Banking and Currency Committee, made
the following statement.
81 have purposcly refrsined from dis
cussing in the public prints the details Of
the currency bill which | shall soon in
trojucc in the House, and which was
prematurely published some days ago
pending the elimination Of several essen
tlal provisions. At the proper time and
place / hope 10 he able to justify the
measure and defend It against severe
criticism.
Meanwhile. ! have been not a little
amused at certain comments which have
been made by those who think they must
oppose the bill The critics do not agree
among themselves Concerning some vital
points they are not only quite far apart,
but almost ludicrously inconsistent.
"For instance, several very eminent
bankers. whose long personal observation
and practical experience exceed their
theoretical knowledge OF the subject have
protested 20 me by wire ana by letter that
tho bill as drawn will frightfully contract
credits and especially cripple the loaning
facilities Of the country banks Directly
in line with this protest TO me, New York
papers to-day assert that the bankers I'm
that city on Sunday assured Senator
owen. who was there in consultation with
them. that the reserve features Of the bill
would cause a heavy contraction I'm ac-
comm0datlons 10 merchants and farmers
Burton on the Other Side.
at the same moment that these re-
monstranccs were being made by bankers
i'm New York. Mr.. Burton. the Senator
from Ohio. who was a member OF the Al
drich Monetary Commission. was con
tending through the Washington news
papers that the possibilities for imitation
or speculation under the bin cannot be
exaggerated
1T is indeed certain that both PROPOSE
tions cannot be true. II the surmise Of
the bankers a. to contraction f. right the
conjecture OF Senator Burton a. to inis-
ton is wrong. and vice versa. As mat
ter Of fact. both arc wrong. The reserve
provision was expressly intended TO check
imitation and diminish stock speculation.
and 50 sure are some bankers that Il Will
too well accomplish It's purpose that they
are entering emphatic protests. On the
other hand. such pains were expended 10
guard against any apprcciahle contraction
Of business credits that nobody can pro-
duce figures To justify the assertion that
the bill fails Of its intent
But isn't II wonderfully refreshing for
an advocate OF the Aldrich plan To at
tribute 20 the administration bill the de-
fcct ascribcd 20 IL by Senator Burton!
The Aldrlch bill not only lcft all the re-
serves OF the country I'm money centres
directly available for speculative pur-
poses. but actually authorized the use OF
the AIdrch currency FOR reserves. As
WAS publicly demonstrated by one OF the
biggest and ablcst bankers OF the West
the Aldrich scheme presented the pos
sibility OF currency imitation 10 the cnor-
nous extent of six thousand million dol
lars before the tax OF which Mr.. Burton
speaks would apply.
And then note. n you please the com
placent comment about the enormous
Capitalization OF power contained In the
bin which W shall introduce. Who docs
not know that the Aldrich scheme toHl
short Of being "A central bank, with all OF
the prerogatlves Of such an institution as
well as all the powers. only because II
dld not propose 10 deal with individuals :
The federal reserve board provided In our
hill has power. 10 be sure IL would he
useless without power. but II has not
the banking incentive TO make money
primarily rather than TO serve the coun-
try before all things else.