The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-25
DEBATE ON MONEY
BILL IN SENATE
Measure Reported by Democrats
Offered as Remedy by
Owen.
MADOO BREAKS PRECEDENT
Member of Cabinet Occupies
Seat on Floor OF Senate to
Hear Discussion.
Especial 10 The Timcs-pispatch.

i III
Washington, November o4.-Anothcl
precedent was established by this ad
ministration to-day when Secretary oi
tho Treasury McAdoo occupied q seat
on the floor Of the Senate and listened
10 the opening OF the debate on tn,
currency question
Among the public but little interest
was aroused Miss Jessie wilson. til.
! brIGn-to-hc Of tomorrow wedding.
with her sister. Miss Ai.t-alct. and
some or The house guest. sac for an
hour In the Presidents Reserved pew
Scattered throughout the ntA"r CALLER
les We're Il number Of tourists and thc
usual accompaniment Of habitucs.
Senator Hitchcock. for the opponents
oi tn" administrations currency plan
gave notice that he would address til.
Senate tomorrow.
Under tho present system tho oanl;
reserves OF the country are coucen
trated largely in New York. whcr,
they are leaned In speculative ac-
counts on the New York stock Ex.
change. senator owen asserted to-day
in the opening debate on tho admin
istration currency bill in the SENATE,
lie declared tho administration bill. a.
reported by the Democrats Of the Bank
ing Committee. would remedy this con
d!tion.
Reviews Details of mn.
Senator Owen reviewed the details
ot the bill and urged that by tho crea
tion Of a market Tor discounted com :
;mercial paper. and BY mobiizing the
reserves In public utility banks, the
measure would remove the great dan
gers Of the present financial systcm
declaring THAI ut present New York
bankers who hold a large pcrccntago
OF the country's reserves are forced 10
place those reserves in cali loans on
the stock exchange. the Senator said:
we arc advised by representative
Ne" York bankers that tho great
banks there would bo glad To have
the system improved by the establish
mcnt OF Federal reserve banks strong
enough TO furnish money on demand
against good commercial bills. ana thus
enable tho New York banks To with
draw their funds from tho stock cN-
chanSe. which has becom. the most
gigantic gambling establishment III the
world. and place sCch funds In the
service Of Legitimate industry ana com
mcrcc. This will be one OF the great
benefits Of tho pending measure. that
IL. II viii withdraw from the gambling
enterprises on the stock exchange tile
bank reserves OF the country. ana en-
able such reserves to he used for the
commerce OF the nation"
III detail, Senator owen explained the
security which would be behind the
new currency. pich. under the hin,
would he Issued 1sninst commercial
paper iicsidcs tn paper. he pointed
out. the notes woulu secured by the
liability Of tho member bank discount
ing the paper, the liability OF Its stock
holders the liability OF tho reserve
bank issuing tho notes. and its stock
hclding banks, q 33 l." per cent gold
reserve, and the guarantee Of the
United States.
There has never been issued Il note
with such safeguards surrounding II
by any banking system Of tho world
hc said.
Urges speedy Action.
Senator owen urged speedy action
on the bill. declaring that banks and
business men throughout tho country
wero holding back" to discover just
what form tho Legislation would take.
He said that the differences between
the two divisions of the Senate com
mittee should be adjusted, and, as
chairman, expressed his Willingness to
accept some of tho proposals made BY
tho nntiadministration faction. Sena-
tor owen vigorously attacked the cen
tral bank currency plan. particularly
Continued on Eleventh Page.)