The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-01-22
FINANCIAL PANIC
MIGHT COME AGAIN
Virginia Congressman Talks
at Convention
REFORM is URGED
In Address Before National Chamber
of Commerce, Glass Ridicules Aid
rich-Vreeland Currency Act.
Symptoms of Panic

Washington, January 2.--That IT Is not
unreasonable, but wholly in accordance
with past experience to expect 'finan-
cial panic similar to the one in 1907, at
some time in the future" was the decla-
ration of Representative Carter Glass of
Virginia. chairman of the subcommittee
Of the House committee on banking and
currency in an address tonight at the
convention of the National Chamber of
Commerce. mo one could tell" Mr..
Glass said, when such a panic would
some, but ne declared There are symp-
toms that should not go unobserved."
AT the outset of his talk Mr.. Glass
called particular attention to the state-
ment. made recently before his commit
tee by a banker of the west, that not
even during the panic of 1907 did he
experience greater difficulty in meeting
the demands upon him than during the
last autumn. when he was obliged to let
his reserves run down to accommodate
hi; customers.
Il would not commit myself to any
definite prediction as to a recurrence of
tie trouble in 1907 said Mr.. Glass, but
| dc say that 1t would be the height of
folly for us to defer action until 1t is
fcrced upon us by the imminence OF
panic"
Currency Act Ridiculed
Representative Glass ridiculed the idea
that the Aldrich- Vreeland currency act.
which expires June 80. 1914. is a prevent
i've of panics. lie declared that although
I'VE have just passed through a situa-
.rttt -
net a single national bank in'the country
was willing to hoist the signal of dis
tress that would be involved in making
application for the sort of currency
which the A1drich- vreeland act author
izcs.'
The speaker insisted that currency re-
fern is urgent and the time ripe for ae-
ton "Postponement can result only in
embarrassment he said, perhaps in
actual disaster" He pointed out that
upon the business and commercial men
of the country rests large part of the
responsibility for action or inactivity. The
fact that currency reform has not yet
been accomplished, the speaker ascribed
TO the indifference of the business public
and he gave warning that unless they act
promptly, the remedial legislation 80
sadly needed will long be deferred
Representative Glass attributed the ap-
parent unwilingness OF Congress- 10 act
to the refusal of those who profit by
present conditions TO yield anything when
O remedy involving some sacrifice on their
Fart is proposed" He expressed the con
viction that the chief points to be dealt
with in any effective measures of relief
are
Elastic Paper Currency Needed
provision for rediscounts or sale of
commercial paper In a way and 10 an
extent that will enable banks TO get re-
sources whenever their customers may re-
quire; the issue of a safe and elastic
paper currency, gradually djsplacing the
bond-secured bank notes; regulation of
government deposit Of current funds with
the banks of the country and lastly more
stringent inspection of banks
The speaker thought the central bank
plan Of Europe was not adapted to the
banking of commercial habits OF the peo-
pie Of the United States and he was dis
posed TO favor some plan that would
unite existing banking institutions CT the
country in way that would gain the
advantage of joint strength while pre-
serving the independence and unity OF
each Institution
Nagel. in addressing the convention ue-
oared that the present methods of f-am-
ing tariff legislation are disorganized.
antiauated and without system. The Sec
ietary's statement met with vigorous an
swer from Representative Clayton OF Ala
bama who defended the methods now in
vogue in shaping tariff legislation. Hs
contended that Congress is amply able
70 frame tariff legislation without the