The Birmingham age-herald., 1913-09-04
CURRENCY BILL IS
UNDER FIRE AT BOTH
ENDS OF CAPITOL
House Republicans Fail in
Effort to Open New
Hearings
BA7 ~ERS BEFORE
ESNATE COMMITTEE
= Ssure May Be Reported to House
SMonday-Democrats Will Urge
Immediate Consideration.
Senate Hearings

washington, september Sine au-
ministration currency bill was under
fire at both ends of the capitol today.
Bankers association continued their
criticism of the bill before the Senate
currency committee, republican MEM
bers of the House committee made an
Intellectual effort to have new hearings
opened there.
The administration forces on the
House committee defeated the plan for
new hearings by a vote Of 10 to All
of the republicans supported a resolu-
of Pennsylvania (republican), which
asked that the Secretary of the Treas
ury, the Comptroller of the Currency
and representatives of the American
Bankers association be heard. The
Burke resolution was defeated and the
committee adopted one by Representa-
tive Wingo of Arkansas (democrat) de-
claring the Views of the American
Bankers association were fully known
and that the amendments proposed by
the recent bankers conference at Chi
cago had been repeatedly suggested
to the trainers of the bill and every
one of them seriously discussed and
freely considered by those responsible
to the country for this legislation"
Urge Immediate Consideration
This action will result in the oor-.
clusion of consideration of the bill by
the House committee late tomorrow and
the reporting of the measure to the
House Monday. Democratic leaders then
will urge immediate consideration of
the bill In the committee meeting to-
day Representative Ragsdale of South
Carolina was the only democrat who
favored the opening of new hearings.
The Senate hearings will continue
throughout the week. with members of
the bankers committee as chief wit
nesses. 1t is expected that republican
members of the committee will seek to
defer all currency legislation until
December
Today's session OF the Senate COM
mittee was interrupted by a banker
not a member of the Chicago confer
ence committee, who opposed many of
the suggestions made by the bankers
committee. This witness, President
Johnston of the National Reserve bank
of Kansas City. said the central bank
idea advocated by many bankers tend
ed to Capitalization of power" He
favored the administration plan as
decentraliZa of pOwer
Festus j. Wade, president $of the
Mercantile Trust company of St. Louis,
chief representative of the bankers
conference committee, declared the
national banks of the country ought not
to be compelled to surrender one
tenth of their capital and e-half of
their reserves to the proposed govern
mental system. If they were to be de-
MED representation on the federal re-
serve board.
"Force Bill Charged
Mr.. Wade charged that the admins
tration bill was a force billy would
accomplish far less in bringing about
a satisfactory reorganization of the
banking system than would plan that
was more attractive to the banks.
He said the plan would give national
banks few advantages that they would
not enjoy under state bank charters;
the state bank field.
The witness declared the banks did
not care to own the stock of the region
al reserve banks and would be willing
that 1t should go into the hands Of
private subscribers; but he did not be-
lieve such a plan could be worked out
without putting the government into
the general banking business.
Throw the doors open to anybo ody
fh1 oo1r l. a
emphatically. 1--WE will take 1t IL you
don't force us to, and make the plan
attractive enough"
The refusal of but 10 per cent of the
national banks in the different sec
tions of the country to join the pro-
posed system, would make 1T impossf-
BILE to secure the necessary 5000, 900
capital for regional reserve banks in
the middle states and in the Pacific
coast states, said Mr. Wade He added
however, that he had figured out the
larger national banks as among the
number that might withdraw from ma
tional bank charters.
Would Be imperative
TT is my opinion" he stated, 'that
If the present bill were passed TODAY.
it would be absolutely imperative to-
morrow. You have discoura ged, by its
force provisions, the men who have
built national banking up to Its pres
ent development. If you attempt to put
this bill through, calling for the or
ganization of IL reserve banks each
with minimum capital Of $4,000, 900,
and confine the subscriptions to stock
to national banks. 1t is our judgment
that the plan will be unsuccessful"
Mr.. Wade indorsed q suggestion made
he selects to serve on the federal re-
selection OF list of SO or more men
by the banks from which list the Pres
ident might appoint the four members
he selects to serve on the feedral re-
serve board.
What we want is banking experience,
credit experience, and financial wisdom
on that board he said