The San Francisco call., 1913-08-25
Effect of Criticisms by Chi
cago Conference Is Solid
flying Democratic Sup
port of Measure
WILSON'S POLICIES
WIDELY INDORSED
Last Week Finds Admins
tration Forces More
United Than Ever

WAsHINGToN. Aus. a4.-The answer
or the administration forces in the
house to the criticisms of the new
currency bill made by the conference
of bankers at Chicago yesterday viii
be tightening up Of the lines and a
more vigorous ,piorsement OF the bill
as It now starGs.
Informal con nferences of democratic
members OF The house currency coTl-
mittee today emphaslzed the fact that
the active supportc-s OF the presidents
currency plan expe- - pass the meas
IRE through the house without sub
stantial change
The amendaenis proposed BY tie
bankers, it was pointed out b. house
leaders today. ali we're considered in
detail when 1.le bill originally was
prepared, and ia' the ong debate over
its provisions in the house committee
on banking and currency. The pro-
posal to reduce the quantity of reserves
and give country banks the privilege
OF keeping part OF their reserves in the
large cities had many supporters, and
ultimately 1t may be worked into the
bill in the senate. but the change is
not expected in the house.
WILL HEAR BANKERS
The bankers will have an opportunity
TO present their views openly to con-
gresS after the currency bill gets into
the senate. Chairman owen of the sem
ate currency committee said today that
while hearings had not yet been ar
ranged, he expected leading repre-
sentatives OF the various factions"
among the bankers of = the country
would be invited to give their views
OF the bill to the senate committee
II see a great deal of merit in the
proposal to reduce somewhat the
quantity OF the reserves" said Senator
Owen. I'VE have not discussed the
new legislation sufficiently in commit
tee. however, to know what changes
may be made in the BILL
The fact that the leading bankers
hold differing views of the effect of the
new legislation. particularly with re-
gard to the possible reduction of loans
and curtailnent of credit, has led mem
bers of the senate committee to believe
that further debate of the bill at open
hearings would result in winning the
cooperation and support Gf a large
portion of the banking fraternity OF
the country.
WILSON'S POLICIES SUPPORTED
In the opinion of democratic leaders,
the last week has seen greater prog
ress toward united support OF Presi
dent Wilson's legislative policies than
any recent stage of congressional ac
tivity; the entrance OF Secretary Bryan
as the whole hearted advocate of the
administration currency bill, in his let
ter read in the house caucus: the united
front presented by the democratic lead
erS of the house against amendments
TO the currency measure, and the COM
pfete success of the senate democrats.
Few OF the changes advocated by the
bankers conference in Chicago will re-
ceive favorable consideration from the
democrats In the senate. Chairman
Owen is unaltcrably opposed to the
idea of changing the federal board of
control so banking interests would
have share In its management, or the
creation of a currency to be issued by
the banks, instead OF by the federal
government. IT is believed a large ma
jority OF the senate viii adhere to the
plan for treasury notes, rather than
notes to be issued by the banks.
THE sHAFRoTH PLAN
Senator Shafroth. majority member
of the currency committee, tomorrow
will introduce In the senate a proposed
plan for the retirement of all existing
currency, except silver certificates, and
the issuance Oh a general FORM or treas
ury notes secured by per cent gold
reserve.
Senator Shafroth's bill also would
substitute treasury notes at once for
all outstanding national bank notes
and would cancel the government bonds
that now form the security for the ma
tional bank currency. He said today
his bill would save s14,s00,O00 in in
terest now paid By the government on
bonds used 10 secure national bank
currency, q sum that would be in
creased to s22,246.oo0 il the per cent
bonds were refunded with per cent
bonds.
TT would take the control of the cur
rency out Of the hands OF the bankers
and place ii in the hands of the gov
ernment." Senator Shafroth said. 1T
would satisfy the bankers, because it
would cash their , per cent bonds
without loss
Many requests for hearings have been
received by members of the senate
committee.