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Show BANKERS READY HEWSYSTEM Score of Applications Received Re-ceived From AH Parts, of Country and Rush Is Expected. MEMBERS OF HOUSE THREATEN A FIGHT Chairman Glass Predicts Calamity Ca-lamity if Senate Amendments Amend-ments Go Through; Will Be No Hanging Back. WASHINGTON, Dec. 20. With the currency bill in its final stage in congress con-gress informal applications from national na-tional banks to ct into the system that will bo created undor its provisions provi-sions began 1o come today to Secretary Secre-tary of tho Treasury McAdoo. Nearly a fcoro of such applications had been received up to-closing time tonight and Mr, McAdoo is of tho opinion that there will be a greater rush early next week. So J'ar tho applicants have been national na-tional bauks from all parts of tho country. Practically every request came by telegraph." One was signed 1)3' eleven national banks in Baltimore; another an-other came from Chicago, a third from Arkansas, ono from Wisconsin, one from Iowa, ono from Virginia and others oth-ers from different slates. No reply has been made by Secretary Secre-tary McAdoo to the applications and no action will be taken by the treasury department until tho bill is signed by the president. It is probable, however, that other things being equal,. the first application will V)b tho 'first honored, although no final determination lias been reached on this question. Already Secretary McAdoo is preparing pre-paring to begin work at tho treasury ou tho vast change in tho nation's financial fi-nancial system that tho law will entail, en-tail, lie practically barred his doors to callers today and had a long talk over the bill with Charles A. Couant o Now York, an expert on finance. HOUSE REFUSES TO ACCEPT OWEN BILL WASHINGTON, Dec. 20. The task of settling the differences between the house of representatives and tho senate In the administration currency bill was taken up lu earnest tonight by the Democrats of tho conference committee of the two houses, headed by Senator Owen and Hiipresentutlve Glass. Tho Republicans of the committee did not attend. No ope would predict when an agreement wouia bo reached and Representative Glass fUt-ly fUt-ly declared that the differences were serious and no Immediate agreement was looked for. Predictions liafl been made earlier In tho day of a report to the senate on Monday. The houao conferees entered upon the work instructed to accept two senate amendments calculated to aid agricultural communities. Tho Instructions wore adopted by the house after an effort to have It concur in all of the senate amendments amend-ments had failed. The amendments Indorsed In-dorsed by the house wore those providing provid-ing that six months commercial paper shall be eligible for rediscount at the federal banks Instead of three months paper only, as originally provided by the house bill, and giving national banks tho right to make loans on five-year farm mortgages up to one-third -of their time deposits. Decided to Fight. The senate amendment providing for tho establishment of a depositors' Insurance Insur-ance fund was mentioned In tho house debate, but It was not Included In the Instructions. The house conferees, however, how-ever, held n session before meeting the senate committee and decided to make a light against tho provision. Strong support for tho amendment on the floor of the Benato was evidenced during the consideration of the bill and u further fight was predicted If tho conference report re-port eliminated the provision. The house conferees were prepared also to make a vigorous fight against soveral of the reserve requirements changed by tho senate. On this point Representative Glass was particularly emphatic In the " debate in the house. Glass Is Emphatic. "Tho bank reserve requirement of the senate bill." ho said, "would r'sult In calamity. Under the senate amendments the total reserves of the banks in cash and In credit with the rcservo banks would bo less than the banks at present hold in cash In their vaults. Within a few months under these provisions we would have a saturnalia of oxpanslon of wild Inflation." Tho rendlntr of tho bill was begun by tho Democratic members of tho conference confer-ence committee immediately after they met. Within nn hour serious points of difference developed. The houfn members mem-bers announced their Intention of Insisting Insist-ing Hint the secretary of agriculture nnd the comptroller of the currency be retained re-tained as mombnrs of the committeo to organise the new system and ns mom-bcrH mom-bcrH of I ho federal rcservo board. The senate amendment, removed them from both. On the number of regional banks the house- members agreed to accept the sennit! provision that not less than eight pe created but Insisted that the provision provi-sion bo eliminated Hxlng tho maximum (Oontinuod on Pago Eleven.) BIKERS REM TO OUTER NEW SYSTEM ; 1 (Continued, from Page One.) number at twelve. They also announced that they would Insist on the house provision pro-vision that tho capital stock of each regional re-gional bank be fixed at 5 per cent of the capital of tho national banks In Its district, dis-trict, Instead of at 6 per cent of the capital and surplus of the banks, as provided pro-vided In the senate bill. MADE THE BILL GOOD WITHOUT KNOWING IT CHICAGO. VJec. L'O. Tho currency bill la the political miracle of the age, "because "be-cause not ten of the men In the house who voted for tho bill understand its fundamental principles." This Is the opinion of J. Laurence Laughlln, professor of political economy at the University of Chicago, expressed today in an address to members of the CKy club. The wonder of It, the pro- feasor said, is that they incorporated the i correct economic principle without realizing realiz-ing it. "When you look back a year and sec the situation with regard to the report ; of tho monetary commission, It mikes you believe that the day of political J miracles has not passed," he said. "Tho present banking laws have been on tho statute books since the civil war and sound currency legislation has been almost Impossible to secure- Slnco that ; time the fundamental idea of the currency cur-rency problem has been that It depended upon the quantity of money in circulation. circula-tion. I "I am willing to stake my reputation ; that the bill will be for good or good for nothing, not because of tho regulation of 1 noto Issues and the Quantity of money in j circulation, but because of the organization organiza-tion of credit provided for. It seems to mo a miracle this thing should have been I Incorporated in this bill, "No one has talked about this feature of the bill, and yet It Is ten times as Important Im-portant as tho regulation of note Issues and the amount of money In circulation. It is u source of marvel to mo that 2Sfi men in the house voted for this bill when there were not ten men In tho house who understood Its fundamental principles." Tho fault In the panic of 1007 lay In the Incomplete organization of credit, Professor Profes-sor Laughlln said. With the organization of credit provided J for thcro is no reason now why a. busi- ness man in an emergency, and with a 1 good, sound business behind him. should ! ever have to go Into bankruptcy, he raid. One provision which Ihe speaker eald was "monetary sabotage," he laid to Jvew York bankers' influence. It is the clause which permits banks to count federal re-servo re-servo notc3 as part of basis for. making mak-ing loans, lie said inflation might ro-sult ro-sult because banks then huvo no Incentive Incen-tive to redeem the notes in their pos-Kcsslon. pos-Kcsslon. NEW YORK BANKERS WILL PARTICIPATE NEW YORK, Dec. 20. Passage of the currency bill In Washington iluds the local banking community, which was none too kindly disposed toward tho measure in Its Incipient 3tagef, more or less ready to accept tho Kalient features of the bill. Changes which the now law must Inevitably In-evitably bring have been taken note of roc.mtly and It la not thought that any national bank of Importance will carry out the threat heard a few weeks ago to relinquish It3 federal charter and operate under a state charter. In fact, tho president presi-dent of a largo Wall street bank tald today to-day that ull of the thlrly-slx national banks of this city could bo depended on to enter the new banking system as soon as the law took effect |
