The Washington times., 1913-07-22
CURRENCY MEASURE
/ At CRITICAL STAGE
Insurgent Members, in CoIIu-
sion With Congressman
Henry, Prepare Substitute.

With the completion of a substitute
measure by so-called ''insurgent'' mem,
bers of the House Banking and Cur.
rency Committee, acting in concert with
Chairman Henry, of the Rules Commit.
tee, who wants a reopening of the
Money trust probe, the Glass-Owen cur.
rency bill reached a critical stage in Its
career today.
The substitute bill, which doesn't pro-
vide for asset currency, and which does
include several recommendations of the
Pujo Money trust committee, probably
will be offered In committee Thursday
and will be introduced in the House Fri
day. The bill is understood to repre-
sent the joint views of Congressman
Ragsdale, Eagle and Wingo, of the
currency committee, and Mr.. Henry.
Congressman Neeley, another member
Of the Banking and Currency Commit
tee, may fall into line for the substitute
bill
Mr.. Ragsdale, who left the Demo-
cratic conference in a huff yesterday
afternoon, returned to day and he may
be selected to sponsor the ''insurgent'
bill in committee. The offering of this
bill, revision of the Glass-Owen meas
ure, will precipitate the expected crisis
among the Democratic members of the
coDmittee.
Wilson May Aid.
Indications today are that the cur
rency bill is in close quarters, and the
President himself may have to come
to the aid of the measure If it is to be
brought out of the committee intact.
The conservatives of the committee
will stubbornly fight any proposition
to include the Pujo recommendations
in the currency bill.
Congressman Ragsdale of South Caro-
lima furnishes an outward indication
Of what is transpiring behind the closed
committee room doors. Mr.. Ragsdale
yesterday Afternoon quit the conference
of the Democratic members, washed his
hands Of the currency bill, and some
what dramatically announced that fur
ther conferences would proceed without
him.
Emergency Limit Removed
As Mr.. Ragsdale qv1t the Democratic
conference late yesterday, his rather
chagrined colleagues proceeded to
amend section II. 1t is explained, how
ever, that the amendments are ''tenta-
tive" One amendment strikes from the
bill the provision that the emergency
currency issue shall be limited to $780,
100000. The limit is now removed, and
the issue will be subject to demand In
times of stress
The second amendment provides a
hard and fast rule that the Federal re-
serve banks, in disbursing the Treasury.
note issues, shall maintain a 80 l-3 per
cent gold reserve, and not gold and
lawful money reserve to this amount.
The bill originally read that when
ever any Federal reserve bank shall pay
0l1f diShaIrGa FAdaral Tr6a g.
ury notes of the issue herein provided
it shall segregate in its own vaults and
shall carry to a special account on its
books gold or lawful money equal in
ury notes so paid by it, The amend
ment strikes from the section the words
'or lawful money" and provides a
straightout one-third gold reserve be-
hind the emergency currency issues.
The tentative adoption of these and
other minor amendments, however, was
overshadowed by the critical situation
existing among the Democratic trainers
of the bill. Four members of the COM
mittee are showing increasing tend
encies toward insurgency. II thse mem
bers are not brought into line they can
combine with the minority when the
bill is brought into the full committee
and overthrow the Administration
measure.
Why Ragsdale Left.
Mr.. Ragsdale's withdrawal from the
conference came without warning. and
is indicative of the general lack of har-
mony. He asked Chairman Glass for
copies of all the amendments which
have been offered to the currency bill
while II has been in conference for the
past two weeks. Mr.. Glass replied, il is
understood, that many of the amend
ments were immaterial or had been de-
number had been thrown into the waste
basket.
Thereupon, Mr.. Ragsdale dramatically
announced that he was through with
the majority conference, and It made
no difference to him what action might
be taken by his Democratic colleagues.
He stalked out of the room. On the
outside, the recalcitrant South Caro-
nnian remembered that he had left his
cane behind.
Mr.. RagsdaIe returned for the cane,
swung IL over his arm and went away.
That a substitute currency bill is to
be offered in the Democratic conference,
and carried into the caucus or the House
il voted down in conference, is now
practically assured.
Wilson May Save Bill.
President Wilson is apprised of the
unsatisfactory situation existing among
the Democrats of the House committee
and is expected to come to the rescue
OF the bill unless the prospects brighten
Immediately. There is a growing i'm
preston that the President and his close
advisers must act decisively II the bill
is to come from the committee in any,
thing like the shape in which it was in
troduced.
While he does not desire to be put
in the attitude Of opposing the Admins
tration, Chairman Henry. of the Rules
Committee, author of the Money trust
resolution of last session, is still out Of
harmony with the fundamentals of the
Glass-Owen bill. He has been in con-
sultation with several members of the
Banking and Currency Committee who,
like Mr. Henry, are opposed TO asset
currency or who believe that a cur
rency bill should embrace certain rec
concentrations of the Pujo committee
designed to break up the alleged Money
trust"
All the signs point TO a stormy career
for the currency measure, and there is
nothing like harmony existing among
the rank and file in the House