New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-08
FEAR To MAKE CURRENCY
STRAIGHT PARTY ISSUE
Representatives Medley and
Henry Urge Open CauCuses
on the Glass Measure.
OWEN WOULD RETIRE Us
Senator's New Bill Provides for
the Issuing of Three Per
Cent Bonds to Take
Their Place.
from The Tribune Bureau


Washington, Aug. Mindful Of the in
creaslng criticism OF legislating by eau
Gus. Representatives Henry and Neeley.
the former chairman of tho Rules Com
mittee and the latter an insurgent mem
Der OF the Banking and Currency Com
mittee. inaugurated a movement to-day
TO force the throwing open Of the doors
when the House Democrats meet In eau
Gus on the currency bill August IL.
The proposition is being seriously con-
sidered even by the conservative Demo-
Gratis. who fear the alienation OF Repub-
lican support II currency reform is made
a straight-out party issue. II the caucus
IS not entirely open II Is probable that
compromise will be reached whereby
Democrats will not be bound by caucus
action and will he permitted TO offer
amendments 10 the bill in the House.
The tariff bill went through under a
binding resolution forbidding Democrats
20 support any amendment offered by the
opposition.
Mr. Neeley and Mfr Henry will insist
however. that the caucus shall be open
10 the press. and their demand will bring
about the initial skirmish In the currency
, caucus. The insurgent element among
the House Democrats wants a thorough
airing OF the Ragsdae- Henry amend
ments for an agricultural credit" cur
rency. and are opposed to a closed door
policy which may prevent the rural COM
munities from learning OF the heroic fight
waged in behalf OF the farmer.
Expects Republican Support.
Representative Mann. the Republican
leader. said to-day that he did not an
ticipate any concerted action" from the
minority when the administration cur
rency bill reaches the House. Mr.. Mann
believes the Republicans will endeavor 20
perfect the measure. but that many OF the
minority will vote for the bill on final
passage. This prospect will be increased
IL the Democrats hold an open caucus and
do not attempt to bind the majority mem
bers TO support a partisan bill Unless
the Democrats seek trouble by assuming
partisan attitude on the currency
question. their bill will receive consider
able Republican support.
Democratic canvassers have taken
fairly complete poll Of the majority mem
bershlp OF the House. and have reported
10 Mr.. Underwood that the insurgent
movement is not strong enough TO
jeopardlze the administration bill and
that IL will pass the lower body By sub
stantial Democratic majority. Although
he was opposed TO currency legislation at
the extra session. Mr.. Underwood will aid
I'D reCeiNnd aIVtCey
which indicate that the measure will be
I'm good shape so far as the House Is con-
cerned.
A separate bill providing for the retire
ment OF outstanding per cent bonds at
par and accrued interest. and the issuing
OF per cents in lieu thereof, the redemp-
ton Of national bank notes by the Issuing
az Treasury notes. and the increase or
the gold reserve was introduced to-day
by Senator owen.
No Conflict with Currency Bill.
Senator owen is OF the opinion that the
special bill 10 dispose OF the per cent
bonds will not conflict with the currency
bill.
The bill" he said. intends 10 build up
the gold reserve. which is now Sl54cOo.OoO.
against pl6o0.Go OF greenback Issue
and IFS purpose is to unity the currency
and simplify the forms used. We can
build up the gold reserve In the redemp-
zion division without cost and by build
ing I'D a very large reserve IN the redeinp-
ton division II has the psychological Ell
feet upon the nation OF establishing and
maintaining confidence in the stability OF
our financial system.
For Three Fer Cent Bonds.
"rhe bill I introduced provides that the
limited States shall. on request OF any
national bank having such 2 per cent
bonds on deposit for security of national
bank currency. take over such per cent
bonds at par and accrued interest and as
sumo the redemption OF the national bank
notes issued against such bonds. IL pro-
vides that when these national bank notes
come into the Treasury for redemption
they shall be cancelled and Ike amount
of Treasury notes Issued and the per
cent bonds. which are thus transferred 10
the ownership OF the United States. shall
he cancelled and per cents reissued III
lieu of such cancelled per cent bonds
and the per cent bonds placed In the
REDEMPTION division as security for the
issue of such Treasury notes.
This follows the principle pursued by
the great reserve banks of Europe. which
keen on hand government securities with
which they could, II necessary. obtain
gold for the redemption In gold OF any
notes offered for redemption by the pub
lie"