Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-04-22
TENTATIVE PLAN OF DGMocNA1
a
TIC SENATE LEADERS CALLS y
FOR FINANCE zoNEs.
CURRENCY WOULD BE ISSUED
THRU REGIONAL REsERvgo
Government Board to Assist in Supsrs
vision Of Banks Dssionatsd - cure
rsney Would Be lssusd Thru Thess
and Elasticity 10 Aimed At-pisftro
From Aldrioh Plan.

rency committee. called it's members
together today and advised them OF reS
suits OF informal conferences with
President Wilson. Secretary McAdoo
and Chairman Glass. Of the house banks
ing committee, on the subject OF cure
rency reform. Hearings are 70 be ar.
ranged to be followed by joint Sea.
sions Of tho currency committee %
both house and senate preparatory to
currency legislation at the extra scss
sion OF congress provided tho tarir IL
disposed OF without unforeseen delay.
Working informally, obtaining opin-
inns of the president and his advisers.
Senator Owen and Chairman Glass have
been loked upon as the men to frame 9
measure TO be known as the Owens
Glass bill While there has been no
final agreement as yet as to the main
features OF the currency reform. cerx
tain prevalent ideas. some OF which
eventually may be found in the bill,
became known today. These Includes
Regional Reserve Banks.
First--F'ifteen regional reserve banks
which would act as fiscal agents for
the government. receiving deposits Of
public money. acting as banks of dis
count for the banking in their respec-
tive regions. and receiving part OF the
reserve of the banks OF the countrys
Currency would be issued thru tho
regional reserve banks. Practically all
the capital stock of these institutions
as well as any accruing profits would
be the property OF tho banks Of each
region. &
Second-A governing board to super-
wise the regional reserve banks would
be established to consist OF the secre.
tary OF the treasury. the secretary oc
agriculture and the comptroller OF the
currency as ex-offlcto members: four
directors chosen by tho banks Of the
country. and two directors appointed
by the president of the United States.
The details OF this feature have not
been worked out but 1t is planned to
have seven to nine members. the ten-
ure OF the directors selected by the
bank to be longer than those OF the
directors.
Elasticity Provided.
Third-The elasticity of the currency
would be provided for by conditions
calculated to prevent imitation. Any
notes issued would be redeemable in
gold by providing a reserve for actual
gold redemption There has been some
question as to whether these notes
should be United States notes advanced
to the banks on an interest charge
high enough to prevent imitation or to
be bank notes under hke conditions.
State banks would be required to in
crease their reserves.
Fourth-The extent to which the re-
serves could be used has not been de-
termined but one plan is in favor OF
permitting their use under a reason
able tax. With respect to the rate OF
discount it has been Invariably sug-
gested that the governing board might
require the rate to be made progress
sive when there was an increasing de-
mand for currency. so as TO stiffen the
open market rate and attract gold
somewhat after the system used by the
bank of England.
Bond Retiring Plan.
Fifth-~One of the plans suggested
and which Representative Glass advo-
Gated in a rece.'t speech was to retire
the present bond secured currency, not
at once but over period of ten to fif-
teen years, which might involve n re-
funding of the per cent bonds with
the circulation privilege into per cent
bonds without circulation privileges.
AS the bond secured currency would
be returned a substitute currency
based on commercial paper OF a quail
fed class would automatically take its
place
Differs From Aldrich Plan.
Those democratic leaders working
on currency reform declare the con-
templated changes would be neither
radical nor abrupt hut will merely per-
feet the present machinery and facili-
ties of the country's banking system.
The plan that Will be finally evolved.
they also assert. Will be substantially
different from the so-called Aidrich
plan.
There is talk of establishing branch
banks abroad 10 obtain for American
bankers a share of the foreign trada
and commercial transactions. With re-
spcct to the subjects Of guaranteeing
bank deposits, however. the currency
advocates are practically unanimous
that this should kept separate from
from any currency bill and that il ate
tempted at all it should be taken up
after the monetary reform is in actual
operation. when bankers themselves
might determine whether they wished
to establish an insurance fund out OF
the earnings of the regional institu-
tions.