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September; 1913
The Commoner
15
Congressman Stephens on the
Ulass-Uwen (currency Bill
In reply to criticisms of certain;
features of tlio Glass-Oweh currency
bill received by Congressman Dan V.
Stephens, of Nebraska, from several
of his constituents, he gave out the
following statementr
The facts developed during the
week's discussion of the currency
bill in the caucus greatly strength
ens my faith in the value of the
measure to the country. The big
outstanding fact is that this bill takes,
the legal reserves of the banks out
of the hands of the Wall street
gamblers where the country was un
able to get thera during the panic of
1907 and places them in twelve big
federal reserve banks located in
twelve regions dr districts, where
they will bo available for the use of
the banks of each, district for redis
count purposes. The present reserve
system broke down in time of stress,
proving its inadequacy. Certainly
the fifty-three central reserve banks
in New York city, Chicago and St.
Louis, and the three hundred fifteen
reserve banks 'in smaller cities car
rying approximately the bulk of a
half billion dollars, of the legal re
serves of the country will oppose this
measure, because they can loan sev
eral billion dollars on that amount
of reserves to the people at a good
rate of interest They are not to be
blamed from the viewpoint of per
sonal interest for opposing a bill that
takes this amount of business away
from them; But it is beyond my un
derstanding how any one of the 7072
country banks which make up the
- -. f it. -
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, GROWING STRONGER,
Apparently, Tvlth Advancing Age. '
"At the age of 50 years I collapsed
from excessive coffee drinking,"
writes a man in Missouri. "For
four years I shambled about with the
aid of crutches or cane, most of the
time unable to dress myself with
out help. ": .
"My feet were greatly swollen, my
right arm was Shrunken and twisted
inward, the fingers of my right hand
wore clenched and could not be ox
tended except with great effort 'and
pain. Nothing seemed to give me
more than temporary relief.
"Now, during, 'all this time and .for-
about 30 years-1 previously, I drank
dally an average of -G cups of strong
coffee rarely 'missing- a meal. .
"My wife at last took my case into
her own hands and bought some
Postum. She made It according 'to
directions and. I liked it fully as well
as the best high-grade coffee.
"Improvement set in at once. In
about 6 months I began to work a
little, and in less than a year I was
very much better; Improving rapidly:
from day to day. I am now in far
bettor health than most men of my
years and apparently growing stron
ger with advancing age.
"I am busy every day at some kind
of work and am able to keep up with
the procession without a cane. The
arm and hand that were once al
most useless, now keep far ahead in I
rapidity of movement and beauty of
penmanship.'
Name given by, Postum Co., Battle
Creek, Mich. Write for copy of the
little hook, "The, oad to Wellvllle."
Postum comes in two forms:
Regular Postfafrtmust be well,
boiled. '" ".
'Instant Pstturi' is a Soluble
powder. A, ' teaspoonf ul dissolves
quickly in a cupf hot water and;
with the addition J df cream a'nd
sugar, makes a 'delicious beverage
instantly. '
"There's a reason" for Postum.
Jbullc of these reserves should be op
posed to mobilizing thorn Into twelve
' federal reserve banks whom tmv
, will be available for legitimate busi
ness wuouy, rather than for most of
them to be used for the benefit of
gamblers in Wall street.
The claim has been made by some
that the loaning power of country
banks is decreased by this bill. This
is not true as any one can see when
it Is understood that the transfer of
legal reserves to the federal banks
floes not in any way lessen the power
of. country banks to borrow or re
discount. They can rediscount with
their federal bank to the extent pi
their reserves and beyond the only
limit being the ability of the federal
reserve bank to keep its gold reserve
of thirty-three and .one-third per
cent. And if that is exhausted and
any other federal bank has an ex
pess the federal board can order it
to rediscount for the federal bank
that is short of reserves, tyot one
dollar of this money can be loaned
to gamblers. It is for commerce and
broduction.
Some also complain of the capital
stock they must subscribe to this
bank. That is not a serious matter
at all, though I would amend the
bill if possible to eliminate capital
stock as in my judgment it will not
be needed for several years. A
Country bank subscribing ton per
cent of its capital to the stock of
the federal bank will no doubt find
the earnihgs on that stock -practically
fequal tp what the1 remainder of their
capital earns. The bill has been"
amended, so that the profits of the
federal bank will be divided with the
government according to the ' bal
ances each bank keeps.
Others complain that the presi
dent has too much power in naming
this board. One can take his choice
in this dilemma between the presi
dent and the banks. One or the
father must have the pbwer. My own
yiew.is that since the power of. this
board ip largely supervisory, not un
like the power now. exerted by the
comptroller of the currency,, and
since the government has a great inn
teres t . in these, banks . through the
lajrge 'deposits it will carry -with
them, there can be no doubt of the
importance; of government control.
Further,, if this federal board should
Deselected, by banJcs one federal re
serve., bank might dominate the
otlfers and control the whole. I can
noij.soe hpw any country banker could
afford, to take, .his chances with a
bankers' federal board controlling
his destinies. Such, a board .would
represent competing banks, while
the government controlled federal
board will represent all, having no
Interests in any bank in rany way.
The board wpuld be an Impartial,
disinterested judge of all.
. Others complain, that a federal
board appointed by . ther president
would be political and dangerous.
The argument fails because In fifty
years of political control, of national
banks by i the government through
tlie comptroller of the currencv
there is not an example of abuse of
power though thq comptroller has
the power to close and ruin a, per
fectly solvent bank if he desired to
do' so. It is apparent at once to all
that an administration would be dis
credited and repudiated if thp fed
eral reserve board, failed to properly
cohtrol the banks and the country
was plunged Into financial distress.
It is inconceivable that & president
woiild be so f blind x to the success of
hfe own. administration as to fail to
use the utmost care in appointing
men of the highest integrity ' and
SPIKED
Philadelphia Public Ledger.
ability to the federal . board. Be
sides the bill provides "that at least
two of the four appointees must be
of the opposite party.
Another criticism is that this law
creates a gigantic banking trust.
Nothing can be further from the
truth. We now have a gigantic
banking trust in the centralizing of
our reserves in New York city, gov
erned by private Interests by dark
lantern methods. Under this bill the
money trust is robbed of Its sting
by taking aw y the legal reserves
it has always gambled with and
placing thera under government con
trol under twelve big bank heads
representing each section of the
country, each bank attending to the
needs of its reglou or district. Under
this method every section of the
country gets' its share of the money
and no section can rob any other
section as the watch dog of the gov
ernment has its eye on all twelve of
the big centers of reserves. It ir; the
very opposite of a privately con
trolled trust.
Another favorite argument of the
big banks is that they are compelled
to furnish eapltal to these federal
banks but have no representation on
the federal reserve board. The argu
ment fails because each of the twelve
federal reserve banks is managed by
a board of directors. The real bank
ing business is controlled by the
banks absolutely. The federal re
serve board is supervisory and Is
given power to keep the twelve big
federal banks in order and from each
others throats. Nothing more, nor
nothing less.
This bill frees for legitimate busi
ness hundreds of millions of money
that stock gamblers have heretofore
had the use of. It will furnish
through the twelve federal banks
the largest market for agricultural,
Industrial and commercial paper
that has ever existed anywhere. It
will increase the loaning power pf
every country bank that becomes a
member of the reserve bank. Jt will
enable country banks to get their re
serves when they need thorn. It
loaves country banks every privilege
of profit they now possess to make
money. In short it is the beat bill
ever presented to congress that has
ever had a show of becoming a law.
Wall street would like to stir uu
a panic to stop this legislation If it
could but thanks to the courage and
good sense of Secretary of the Treas
ury McAdoo, they can't do it. This
Is the first time in the history of the
country that a secretary of the treas
ury has defied Wall street. Hereto
fore when Wall street gambled up
all of our reserves and got Into hot
water the secretary of the treasury
has rushed to their aid and deposited
the people's money in their banks
so as to enable them to return the
reserves of country banks. But this
year at the first symptom of a strin
gency in crop movement the secre
tary of the treasury tells the bankers
of the west and south that he will
deposit fifty millions with them and
a hundred millions if need be for
crop moving purposes. They will not
have to pay tribute to Wall street
before they can use the people's
money, with which to do business.
It seems beyond belief that the
bankers of this country should have
submitted without protest to the
practice of feeding our money into
Wall street banks in order that it
might trickle through out west to
do the business of the country. It
looks as if the country was coming
Into its own under the operation of
this proposed legislation.
HIS "RIGIIT" HAND
-Pat, who was left; handed, vras
being sworn in as a witness in the
west side court of Denver, Colo.
"Hold up your right hand," said;
tne judge.
Up went Pat's left hand.
"Hold ub your right hand." cora
manded the judge, sternly. ' '"'
"Sure, and I am yer honor' de-
clared Pat. "Me, right hand's on ma
left sjde." Woman's Home Companion.
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