New-York tribune., 1913-06-29
Chairman Says Democrats VIII
Not Risk Political Disaster
by Opposing Passage.
TRUST COMPANY FEATURE
Measure To Be Introduced Per
hitting National Banks to
Act as Administrator
and Trustee.
fFrom The Tribune Bureau.l

Washington. June 2S.-A plan TO
speed the passage Of the currency Dill
! has been arranged by Senator owen.
| chairman Of the Committee on Bank
| ing and Currency, who to-day pre-
dicted the bill will be reported TO the
Senate within two weeks. II the plan
/ is successful the currency bill will be
used to fill in the gaps in tariff debate,
II there are any gaps.
In any event, Senator Owen said, the
Senate will not wait on the House in
currency legislation. He believes, he
said. the Democratic Senators will not
run risk of political disaster by op-
posing the measure and is equally sure
the bill will be considered in a nom
partisan spirit and have the support Of
some Republicans.
Hearings, which will begin next week,
have been restricted 10 bankers and
experts. and will consume little time
When the hearings are completed. Sen
ator owen said. he will ask the com
mittee to report the bill promptly 10
the Senate.
Mr.. owen to-day said he regarded the
opposition Of some country bankers to
the bill as due TO a misunderstanding
Of It's provisions. Complaint has been
made, he said. from the small banks
that the provision for rediscounting
forty -hve-day paper does not do them
any good. Their paper consists almost
entirely Of farmers notes. which run
for several months.
Senator owen emphasized that OK
perience i,r some sections OF the coun-
/ try has shown the conditions could he
overcome 10y persuading farmers 10 on
large the scope Of their industry.
| Farmers. said. should be encouraged
| 10 take up other lines which would call
Stock feeding. occupying a period Of
! four months. was mentioned by him
to illustrate this particular situation.
The small banks, he said. also com
plain Of the provision TO pay in 10 per
cent Of their capital stock to the Fed
cral Reserve Bank This complaint rs
based upon the assumption that II
would withdraw that much OF the
working capital Of the member banks.
Mr. owen held this provision re-
quircs simply a tran-fcr Of credits and
will not take actual cash out OF the
/ vaults of the member banks.
l frt
from this transfer Of credits, he said
would be the difference between per
cent. the highest dividend a regional
reserve bank is permitted to pay mem
bcr banks and the prevailing local rate
Of interest Banks in general. Mr
/ owen said do not make more than 3
per cent interest
Senator owen took issue with the
charge that the withdrawal ~ reserve
| in the reserve centres. 20 be- placed in
! tho reserve banks. would cause a sc-
rious disturbance Of financial condi-
| tiOns In the larger cities. There would
| be no disturbance in New York City. hc
said. because practically only three ma
tional banks carry extensive accounts
Of this sort with out-of-town banks
! These are the Hanover. Chase and
/ First National which have about eight
! thousand accounts with country banks.
These three banks. he said keep a
J cash reserve in their vaults OF % per
cent Of their actual deposits of this
character. so,the proportion Of transfer
Of reserves to the regional banks would
be very slight and cause little trouble.
TO afford national banks advantages
which they do not now enjoy Senator
! owen said he will Introduce I'm few
| days q bill which viii provide for them
some Of the privileges Of trust com
panics In that they shall be permitted
10 perform the functions Of administra-
! tor and trustee.