Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-10-30
SENATORS FAVOR
VANDERBILT PLAN
Majority of Committee Like 1t
Glass of the House At
tacks Scheme.

Washington, Oct. 26.--Reconstruc-
! ton Of the administration currency
/ bill begins tomorrow behind closed
doors in the Senate banking commit
tee. The Issue Is clearly drawn be-
tween the bill as passed by the House
and the central bank plan proposed by
President Frank A. Vanderlip of the
National city Bank of New York.
The Senate committee begins work
with a majority of It's members ad-
mittedly favoring the Nanderlip idea
Administration supporters viewing
that fact, declared that such meas
ure could not be passed in the House
and that the committee therefore must
/ work with the administration bill as
a basis, preserving it's fundamen
! If currency Legislation is not to be
Indefinitely delayed.
Chairman Glass of the House com
mittee, one of the trainers of the ad.
| ministration bill, issued a statement
on the Nanderlip plan. 1t was in part
ay follows:
Il have somewhere read that in
England--or maybe it was in Scot
land-they used to have an an
nual fox hunt at one stage of which
with Reynarl hard pressed, a red
/ herring was drawn across the trail to
divert the pursuit and give the fox
another chance. OF course, what is
popularity styled the money power in
this country is not foxy. nor would
anybody dream of suspecting Mr.
Nanderlip of being in the red herring
business
81 h. tln, > a
House currency bill is designed to correct
the radical defects of a system under
which concentrated wealth has ruled the
nation; and, likewise, it happens to be a
fact that the Vanderlp scheme is pro-
jected a the eleventh hour of con-
gressional consideration with the hope
of indefinite postponcment of currency
legislation should the scheme be given
serious attention.
IF Mr.. Nanderip's scheme was not
actually designed to delay and Illustrate
currency legislation, it will if given con-
sideration, have that inevitable effect.
VANDERBILT INCONSISTENT.
ION July "a Mr.. Nanderlip wrote me
a letter voicing the protest of himself
and other bankers, against certain provi-
sions of the House bill, which involve
government control.
Nov in direct contravention of this
position. Mr. Vanderip and his Wall
Street associates come here at the last
hour hingiaS consistency to the winds
proposing "A politically appointed boa I'd
not one member of which is to be selected
by the stockholding banks. but all by the
President Of the United States. Mr.. Van
derlip In July objected to the long term
of seven years provided by the House bill
but now in October he would stretch on,
the term to IA.
Moreover. what becomes of the fran.
tic protest of the American Bankers as
sociation against the provision Of the
House bill which requires the reserve
funds OF the country to be kept in the
vaults of the individual reserve banks
and in the regional reserve banks? Mr.
Vanderip's plan provides practically the
same thing.
What becomes Of the protest Of tn,
bankers against the power OF the fedora
board under the House bill. to suspend
reserve requirements? Mr., Vanderlr
proposes precisely the same thing.
THE conclusion that 7 reach from this
whole performance Is that this newest
currency scheme prepared As | am told
by Mr.. Nanderlip. Of the National City
bank, In conjunction with Mr. Dawson
of j. T. Morgan & Co. and Mr.. Strong
with the Standard OIL connection, Is In
tended to confuse the question of bank.
ing and currency reform, or else II is
hoped by the adoption of some such
: scheme of absolute Capitalization it will
be far easier hereafter for certain gentle
men to get control of Il for certain pur.
poses than would be possible under the
proposed regional bank system.
THE platform upon which the demo.
|, cratic administration and the G3rd Con.
gress were elected distinctly said: we
oppose the so-called Adrich bill or the
establishment of a central bank
1T Is expected that critical point
will he reached In the Senate committee
work before the end of this week. Sena
: tors Hitchcock. Reed and O'Gorman, the
. democrats on the committee who are in.
. clined to endorse a single bank instead
of the proposed system of separate re-
{ gional banks, will enter the sessions
without having committed themselve:
definitely in support of the President.
bill"
1t is the belief of many members Of
the Senate committee that several week:
, will be consumed In the discussion anC