Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-10
CURRENCY BILL
DEBATE IS BEGUN
Glass Says Bankers Opposition
Is for Fear of Losing
Gambling Profits.


WASHINGTON, Sept. 10.-The ad-
ministration currency bill today
started on it's devious way to the
statute books when Chairman Glass.
of the House banking committee.
and one of the fathers of the meas
ure, opened the currency debate in
the House.
In long speech, Mr.. Glass ex-
pounded the principles underlying
the bill, and replied to various
criticisms of the measure. The
Democrats hope to conclude the gem
eral debate on the bill this week and
begin its detailed consideration Mon
day.
Mr.. Glass replied at length to the
criticism that the Federal Reserve
Board, placed by the bill in control
of the proposed financial system,
would, with its wide powers, be sub
ject to political influence.
"No Politics Possible"
"There is no politics in this mat
ter: there can be none. It is my
earnest conviction, based upon long
and serious reelection, that no man
can conceive as none has yet pointed
out, how any part of this system can
be perverted to political uses" said
he. Il happened to be present when
an eminent banker suggested such a
possibility to the present occupant
of the executive chair and heard this
banker vainly challenged to show
how it might be done.
ct shall not soon forget the en-
phasis with which the resident of
the United States declared that no
man would ever be found who would
be willing to imperil his reputation
or tarnish his fame by so fragrant
prostitution of his high office"
Why Bankers Oppose Bill.
Mr.. Glass declared that opposition
to the bill by bankers was caused by
the fact that the bill would sever
the relations between banks and
stock gambling
"The whole fight of the great bank
ers is to drive us from our firm re-
solve to break down the artificial
connection between the banking bust
ness of this country and the stock
speculative operations at the money
centers," he said.
1.-THE avowed purpose of this bill
is to cure this evil. They do not
want existing arrangements dis
turbed. they desire to perpetuate
fictitious, unscientific system, sane
toned by law, but condemned by ex-
perience and bitterly offensive to the
American people-a system which
everybody knows encourages and
promotes the worst description of
stock gambling.
Gloss of Profits Is What Vexes."
The real opposition to this bill is
not as to government control upon
which we shall never yield: it Is not
as to the capital subscription re-
quired which is precisely that of
the Aldrich scheme unanimously in
dorsed by the American Bankers As
ISOLATION; it is not as to the per
cent dividend allowed member banks,
the exact limit prescribed in the
Aldrich bill; it is not as to com
pulsory membership, which was pro
vided in another way in the Aldrich
scheme; it is not as to the bonu
refunding proposition, infinitely sim
pier and less expensive than the Al
drich device 1t is none of these
things that vexes the big bankers.
1t is loss of profits derived from
a system which makes them the legal
custodians of all the reserve funds
of the country, s240, 100000 of which
funds on the Gath day of November,
1912, they had put into the maelstrom
of Wall street stock operations.
Republican o. KS Bill in Part.
Representative Hayes, of California.
ranking Republican member of the
banking committee, opening debate
for the Republicans, Endorsed part of
the bill, but attacked the provision
allowing national banks only per
cent. profit on their investment in
the Federal reserve bank
In spite of all these criticisms"
said he, II am firmly of the opinion
that If the notifications in our sys-
tenn proposed by this bill can be put
into active operation, they will work
a vast improvement in our system or
lack of system"