The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-22
COTTON RELIEF PLAN
IS KILLED IN HOUSE
Southern Members i'm Revenge
VIII Probably Defeat Re-
serve Act Amendments.
WILSON DICTATED SAFETY

WASHINGTON. Oct 21.-Through the in
| fuence of the Wilson Administration the
House followed the lead to-day OF the
Senate In rejecting bill proposed by
Southern Democrats providing for an issue
OF s250,000,000 OF emergency currency 20
be used in relieving the cotton situation
in the South. 1t was a bitter pill for the
! Southern advocates Of the plan to swallow
and they showed their resentment By hold
| Ing up and possibly defeating. so far as
! this session is concerned, proposed amend
/ ments to the Federal reserve act fathered
| by the Administration and which the Fed
eral Reserve Board greatly desired as an
| aid to easing the financial situation
| throughout tho country
| Fervent pleas for the passage OF the
| cotton currency proposition were made
| by Southern members. but combnat ion
made up OF conservative Democrats and
| Republicans defeated it. Opposing the
cotton plan, spokesman OF the Admins
| tration, led by Chairman Glass. made the
| argument that II was a dangerous scheme
| OF imitation and IL would eudaugcr public
| credit without in any way relieving dis
tress In the cotton producing States.
| Many Southern members who supported
| the cotton currency amendment shared
| this view, but were forced by political
| expediency to desert the Administration
| on this issue.
| The cotton currency plan came up as an
! amendment to bill introduced in behalf
| OF the Administration by Chairman Glass,
| permitting national banks to lend emer-
| gency funds on commercial paper ND to
| 100 per cent. OF their unimpaired capital
| and surplus, thus removing the limitation
| or 30 per cent OF such loans imposed by
existing law. This, II was argued would
| relieve conditions somewhat and prove
| generally beneficial to trade throughout
the country.
! II was the purpose Of Chairman Glass
| also TO include another amendment in
| dorsed by the Federal Reserve Board re-
| moving the limitation of 80 per cent. On
| acceptances based on export and import
| business, permitting loans on such paper
| up to any amount to be fixed by the Fed
eral Reserve Board. This WAS ruled out
| on debate ON points Of order The board
! believed that such a change in the law
! would be II great advantage to the
| foreign trade at this time.
The debate was marked by sharp ex.
! changes. Chairman Glass was severe in
his structures on the proposed legislatl on.
He declared that to provide for an issue
OF currency without means for redemption
was dangerous, and he believed that the
House would make short shrift Of II.
Representatives HardWiCk of Georgia.
Burnett OF Alabama. Howard OF Georgia
and other Southern members made earnest
pleas FOR the legislation. Mr.. Burnett
recalled that he and hs associates had
voted for the relief Of the Salem fire
| sufferers. that they had voted money for
| relief at the time of the san Francisco
| earthquake. and that th"y urged members
from the North and West to Join with
them in voting relief now to cotton pro-
ducers.
1t looked for time a II the Glass bill
would he passed AS 1t passed the Senate
II contained an amendment incorporate
at the instance OF Senator's from cotton
States extending the benefits OF the crner-
sency currency to state banks on terms
Of equality with national banks.
This amendment was rejected by tne
House committee on the ground that the
proposed change would prove mischievous
as state banks In many cases are not
subject to rigid laws OF inspection and
are not burdened with the liabilities inn
posed on national banks, II was argued
that II State banks We're permitted TO
/ issue emergency currency MANY national
banks would withdraw from associations
organized under the law 10 issue such
circulation
with the defeat OF the cotton amend
ment the southern contingent sought 10
write into the bin the provision relating
to state banks. In this they were de-
feated. They also resorted to obstructive
tactics to delay the Glass bill with the
result that the House adjourned without
taking action on II. For three hours the
House was tied up on motions.
The failure Of the Administration lead
ers TO pass the Glass bin probably means
that It will hnve to 20 over until the
December session Unless there il q
change OF programme the House viii take
up the war revenue bin at 10 O'Clock TO.
morrow morning The leaders believe
that once that measure is out OF the way
II will be impossible IN keep members In
town.