New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-23
OWEN At CONFERENCE
treasures BANKERS
Administration Not to Intro
duCe Currency Bill This
Week, Chairman Says.
WILL CONSIDER CHANGES
Senator Meets Financiers Sc
cretly at Waldorf-Declares
Afterward That Meas
ure Will Stand.

ure Will Stand.
As result Of a conference with
United states Senator Robert l.. owen,
chairman of the Senate Committee on
Banking and Currency. held yesterday
at the Waldorf, on the new currency
bin. New York bankers are in an easier
state OF mind Ii was believed by
many that the measure would be sub
mitted to the House Of Representatives
tomorrow, but Senator owen assured
eleven Of the fifteen members of the
American Bankers Association cur
rency commission. with whom he con-
ferred the greater part of the day and
evening that it would be next week
some time before the bill would be in
troduced.
Every suggestion as to changes in
the bill and every objection to any OF
its features as they now stand that
would be submitted TO the trainers OF
the new currency law would be con-
sidered, Senator owen assured the
bankers. That, he said, was the atu-
tude Of the administration
No Substantial Changes.
AT the end Of the conference Senator
owen was asked if it was likely that
changes would be introduced in the bill.
He declared that the administration
was ready 10 listen 10 all suggestions.
and that there might be some minor
changes. but that the bill, when pre-
scented. would be substantially IN its
present form.
The fact that the seven members to
he appointed to the central reserve
board provided for in the new bill are
10 be appoiutees of President Wilson
did not necessarily mean that politics
would interfere with the workings of
the board. Senator owen declared
Bankers do not control the central
boards of the national reserve banks.
ne said. The members of the boards
Of these regional banks may be re-
moved by federal power it is true. but
the control remains with the banks. as
their successors are not appointed by
the government"
The conference at the Waldorf began
early yesterday afternoon, and lasted
well into the evening. The proceed
ings were kept secret. and what trans
pired behind the closed doors was care
fully withheld. Senator owen was even
loath to admit that a conference had
been held. So were the bankers.
No Class Legislation.
Before ne left for Washington last
night the Senator said:
The proposed banking system for
giving stability to commerce and TO the
banks is properly governmental func-
tion and cannot be delegated to class.
IT should be pointed out that bankers
do control the central boards Of the
regional reserve banks. II is true that
the members of these regional banks
can he removed by the federal board,
but as their successors would be APP
pointed by the banks, control remains
with the banks"
To an objection of the bankers that
the new currency notes should be is
sued by the reserve banks instead Of
by the government he said.
THE notes should be issued by the
government. They will be secured by
the gold reserve, the double liability
Of the stock holding banks in the re-
serve banks and by the assets of the
reserve bank.
IF a merchant makes note and his
bank discounts it. his bank indorses IT..
expressing it's faith in that merchant.
1t is a thousand to one chance that the
merchant will fail in the next forty
five days-the same chance you would
have of shutting your eyes and picking
a black ball out of a box in which there
were 800 white balls.
Little Chance for Default.
Again, the chance that the bank will
fail in the next forty-fve days is one
chance I'm a thousand. and the chance
that both bank and merchant will fail
is one in a million-and unless both
fail there can be no defaulting under
the proposed system"
Among those at the conference were
\. Barton Hepburn, chairman of the
board of the Chase National Bank. New
York: James b. Forgan, president Of
the First National Bank Chicago;
George NJ. Reynolds, president of the
Continental and Commercial National
Bank. Chicago; John Perrin, of Perrin,
Drake & Riley, Los Angeles; Levi L.
Rue. president of the Philadelphia Ma
tional Bank, Philadelphia; e. L. Howe,
vice-president of the Princeton Bank,
PRINCETON. n. j.; Sol WeXler. vice pres
idcrt OF the Whitney Central National
Bank. New Orleans; Festus j. Wade,
president of the Mercantile Trust Com
pany, ST Louis J. r. Sartori, president
" the Security Savings Bank. Los An
geles: Arthur Reynolds. Of Des Moines.
vice president OF the American Bank
ers' Association, and Frederick K.
Farnsworth. Of New York. secretary.
N----