The Washington herald., 1913-10-26
BILL
Hearings CLOSE
Bank Examiner Starek Ques-
toned on National City
Banks Affairs.>
REED STILL WAvERM
Missouri Senator's Position Still Un-
known-Caucus May Fail to
Bind Senators.

Hearings before the Senate COMMITTEES
on Banking and Currency came 20 an
end yesterday with the testimony in ex-
ecutive session OF National Bank Ex-
aminer Charles starsk. of New York.
Much OF Mr.. Starek's testimony. II was
explained by Acting Chairman Hitch
cock. would be OF a confidential char
acter and hence the necessity for closing
the committees doors to the public.
IL was learned last night that Mr
Slarek was questioned by the commit
tee In regard to the recent hotation 1f
approximately s40.OoO,0Q0 in the securi-
ties OF the Chicago City Railway Com
pany by the National City Bank.
1t IS understood that Mr.. Starek yes
tcrday told the Banking and Currency
Committee that he had discovered no evil
IN the conduct OF the National City Bank
In this transaction. He explained to the
committee that the earnings OF the ma
tional banks in New York from ordinary
banking business. aside from bond fio-
tations. were comparatively low. and
that the banks were compelled to aug
mCnt their earnings by participation in
iiOtatierrs and In serving large and sinai,
corporations in the capacity of fiscal
agents.
Further Expert Testimony.
Just before Mr.. Stardk testified Senator
Reed moved that the hearings OF the
committee be considered as ended yes
terday. but with the understanding that
from time to time during the executive
consideration and revision Of the Glass
owen bill. the committee reserve TO it.
self the right to examine experts upon
any particular phases of this important
legislation.
Senator Bristow read letter to the
cOmmittee from Prof. jeremiah w. jerks,
in which Prof. jerks said that he had
begun the preparation of a bill embody- 4
ing Senator Bristow's ideas of a govern
mentally controlled central bank of re-
discount and reserve. He said that when
Frank A. VanderAP's outline was pre-
sented TO the Senate Committee on
Thursday, he had at first considered that
his revision might prove a work OF su-
pererogation. but upon a closer study of
the Vanderlip plan he had found a num-
ber of details therein to which he was
not in entire accord. and he, therefore.
besought the committees further pa
tience. promising them his revised bill on
or before october S.
The legislative situation. with respect
to the currency bill. remains UNCHANGED
There is no dIscernible exhibition OF
weakening in the positions taken all
along by Senators Hitchcock and OGor-
man. that the Glass-Owen bill must be
revised In fundamental particulars as
well as In details.
Reed stands Firm
Reports we're current yesterday that
Senator Reed OF Missouri, who has stood
with Senator's Hitchcock and o'Gornnan
and against the administration Demo-
Gratis. was wavering twoard the admins
tratiori faction. There was nothing, how
ever. in Senator Reeds conduct OF the
committees hearings yesterday to JUSTIFY
this assumption. Unlike his affiliates in
the committee. Senator Reed is not dis
posed to take the anti-administratioE
view OF the government guaranteeing the
circulating notes Of the Federal reserve
banks. But upon other administrative
and legislative features Of the bill he is
In accord with Senators Hitchcock and
O'Gorman and the five Republicans,
When the Banking and Currency Com
mi:tee begins tomorrow the considera-
ton of the Glass-Owen bill In executive
session IL Is the intention or the pres
ent bipartisan majority to bring on at
once series of votes with regard TO
the regional bank system. 1t seems likely
that this system will be knocked out at
the first interchange. 1t then viii be
up to the administration to strive to
force the Democrats back into line, and
upon this point the clash may come upon
the floor of the Senate, through an eff
fort to pass rule discharging the COM
mittee from further consideration of the
bill and calling a caucus of the Demo-
Gratis to rally to the support of the ad-
ministration's program.
1t is safe to asume that under no cir
cumstances will either Senators Hitch
cock or O'Gorman hold themselves bound
by any such Democratic caucus. There
is also muttering. not sufficiently well
founded even to call it a rumor. that
Senator Hollis OF New Hampshire, an
other OF the Democrats. is coming around
to the single celtral reserve bank idea
and other OF the anti-administration po-
sitions.