The Washington herald., 1913-10-20
RADOO DEFENDS
HCURRENCY BILL
Fiscal Head Declares Holders
of 2 Per Cent Bonds
Need Not Fear.
LOYALTY OF BANKERS
Large Demand for Securities Must Con-
tinue to Meet the Needs for circu-
lation, Says Secretary.

Denying that holders of per cent gov
ernment bonds need feel any apprehcn-
sion over a depreciation of this security
in the event of the passage of the Glass
currency bill, Secretary OF the Treasury
McAdoo last night gave out statement
designed to quiet the fears of a few ner-
NOUS people," whom, the Secretary says,
are being led to believe that national
banks will so out of the system II the
pending fiscal measure becomes a law.
Il do not charge that this is done Cor
malevolent purpose" declares the Sec
retary. Perhaps it is due to ignorance
or the undue zeal Of persons or interests
opposed to the currency bill"
The Secretary's statement is IN the form
of letter addressed to r. ID. Duncan,
OF the State National Bank of Little
Rock, Ark, in which he inclosed a cir
cular from a st. Louis bank
No currency bill is going to be passed
which deals unjustly with the per cent
bonds,' says the Secretary.
Reflection on Bankers.
Il am quite certain that every national
bank will loyalty and periodically accept
the provisions of the new currency
measure II il becomes law, and I think
1t is reflection upon the bankers to say
that they will not Every day bankers
from different parts of the country visit
the Treasury Department. They express
themselves with great freedom. have
yet to find one who has determined to
quit the national banking system IL this
measure is enacted.
IF a banker sells his percent bonds
upon the mere apprehension that enough
national banks will go out Of the system
TO force a large volume Of these bonds
on the market, he is simply taking coun-
sci of unreasonable fear.
Even if a number of the banks should
retire from the system, a very much
larger number will undoubtedly remain
in it, and, since the banks that remain
will require larger amount of bonds to
supply the deficiency of circulation
caused by those which may retire II is
reasonable TO believe that there will con-
tinue to be a large demand for govern
ment IS to meet the needs for circula-
tion. The bill does not deprive the IS
of the circulation privilege. 1t leaves it
uncisturbed Every national bank may
continue to buy the per cent bonds and
take cut circulation against them to the
full amount Of its capital stock. as pro-
Vided by existing law.
THE present market quotation for gov
ernment Is should not be taken too seri-
ously- 1t does not indicate real value.
Il can see no ground for apprehension
by the banks about the currency bill or
its effects. l am confident that the meas
ure when passed VII be acceptable to
the country, and that it will prove of
enduring benefit TO the banks. to the
general business interest, and to all OF
the people. ~
This is not a time to AXE counsel Of
foolish and unfounded fears, but 1t is a
time when every citizen regardless of
class or occupation, should paGTioticaIIy
support the government IN its efforts to
correct the manifest defects and abuses
of our financial system, and to give II
greater stability and security.
Il have no sympathy with those who
say that the bankers are 50 lacking in
patriotism that they will refuse t. accept
and obey law enacted in the interest Of
all the people of the country. Such state
ments are a reflection upon tie bankers.
] believe that they will be the first TO
come forward and help the government
make the new system a success as soon
as the Senate and House act Inslly and
the President approves the measure