New-York tribune., 1913-10-22
Senate Committees Work Will
Be Scrutinized for Defects
Before Approval.
MAY MEAN FURTHER DELAY
Amendments to Measure Not
Yet Discussed, but Senators
Are More Optimistic
as to the Outlook.
[From The Tribune Bureau. !


Washington, oct. 21.-The probability
that the Senate Banking and Currency
Committee will summon experts TO pass
on the provisions OF the currency bill
when they are agreed upon clouded still
further to-day the prospect OF legislation
at the present session OF Congress.
1t Is the purpose of some members of
the committee to ask that every provision
of the -redrafted bill be submitted TO cur
rency experts for examination before the
measure receives final approval AS soon
as the general hearings are completed the
committee will discuss the fundamental
principles of the bill and come 10 an
agreement, If possible. on its general feat
ures. AS soon as this is accomplished
and IL may require many days to accom-
plish 1.-THE measure will be revised in
detail
When the committee has completed the
provisions relating to domestic exchange
for example. experts will be asked to
demonstrate. as far as possible, their
probable effect This precaution has been
suggested 10 prevent any possible mishap
when the law is put into operation. The
problem Of foreign exchange will he dis
cussed before the committee tomorrow By
New York bankers and experts.
If the plan proposed is adopted It
seems probable that the remodelled bill
will not be ready for the Senate short OF
three weeks or month. and that the
Presidents prediction Of earlier action
will not be realized
Committee More Optimistic.
The committee has not yet discussed
amendments to the bill. but the events OF
the last few days have resulted In a
more optimistic view OF the situation by
the committee members The fact that
the President has admitted that the bill
needs revision has removed one source OF
contention at least, and has enabled the
members to face the task before them in
moro even frame OF mind.
Among the proposed changes Is one
that will go TO the very basis OF the bill
the provision authorizing the redscount
OF commercial paper and the issue OF
currency by the federal reserve banks
The House provision, some witnesses have
held. was too broad, allowing practically
all paper Of certain maturities designated
to be rediscounted Others, particularly
representatives OF smaller banks in the
Middle West. have contended that the re-
discount provisions would he useless to
them.
The committee probably will make more
definite the provisions relating to state
banks and trust companies to insure that
| both state and national banks shall enter
the system with as nearly equal privileges
| as possible a plan TO open the stock OF
reserve banks TO public subscription will
| be considered.
The provision limiting the dividends "a
be paid by reserve banks 10 per cent
may be increased to per cent and the
provision that, after the accumulate OF
n % per cert surplus, all profits Of the re-
serve banks. except the dividends. shall
be distributed. 60 per cent 10 the govern
ment and 40 per cent TO the stockhold-
ing banks, may be changed TO give I'll
the surplus profits TO the government.
Two Bankers Indorse Bill.
Two witnesses discussed the currency
bill before the Senate committee to-day.
Victor Morawetz. of New York. who
championed the measure, completed his
testimony, and Alexander Gilbert. presi-
dent OF the Fulton Market Bank. OF New
York, took the stand. Both generally
indorsed the bill but suggested changes
in the detailed provisions. Both urged
the reduction OF the number Of federal re-
serve banks fixed by the bill at twelve.
Mr.. Gilbert presented a table showing
the resources available for the organiza-
ton OF six regional banks. to be located
In New England, the Eastern States, the
South, the Mississippi Valley, the Central
West and the Pacific Coast. He urged
that the bill be amended TO allow the
banks representation on the federal re-
| serve board.
To avoid stringency which he said
would follow shifting Of bank capital and
deposits to the proposed federal reserve
banks. Mr.. Gilbert proposed that this
shifting be done gradually. in small in
| stalments.
Mr. Morawetz objected TO the provi-
sion giving the federal reserve board
power TO force any regional bank to re-
discount paper for any other regional re-
serve bank. He said that this provision
would lead TO sectional political demands
for rediscount and result in bad manage
ment of the regional banks.
To Senator Nelson Mr.. Morawetz said
that the bill provided for central bank
shorn of many of its advantages" IT
would scatter the reserves of the country
in various banks" he added. but would
leave the system under the domination of
central board appointed by the Presi-
dent"
AIT