Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-12-19
Bid Calls For Complete Rsferm Of Vast
Machinery Of Banking systsm-
Number Of Regional eanks Left OPP
tienal With Presidents
Fund crsassd 70 Protect Dspositors.

Most Of the difference between the
two houses may be said to have been
ironed out in advance. Majority Leader
Underwood In the house Is authority
for the statement that only two or three
serious points OF difference remain and
they are not expected to prolong the
conference.
One Of these differences Il when the
new currency bill goes into operation.
The house bill proposes that 1t go in
effect In three months from the pas
sa1e nf the bill. The senate hill saws
as "soon az convenient" Administra-
ton leaders believe the senate provis-
ion win prevail.
AZ one provision Of the senate bill
extends the Aldrich- -Vreeland law to
operate during the transition period,
officials expect to see the new system
working very smoothly while reserves
are being shifted.
Secretary McAdoo has announced
that the federal treasury will be ready
with its millions to help the transfor-
nation in every way.
Five Year Farm Loans.
Settlement Of the remaining details
was begun when the senate convened.
A combination Of amendments by SEN
atoss Crawford. Owen and Nelson
bFoadened the section to allow national
banks to loan on hve-year farm mort
cages. Tho amendment would permit
central reserve currency and country
banks to loan one-third Of their time
deposits or 36 per cent Of their capital
and surplus on such security. Senator
Nelson succeeded In getting into the
bill q provision that such banks may
90
pay interest on them, procedure at
present q technical violation Of the law.
The democrats voted down a pro-
posal by Senator Crawford to prohibit
interlocking directorates in banks in
the new system.
cummins Amendment Defeated.
Senator Cummins presented an
amendment to authorize the regional
banks to loan direct to individuals on
proper security IL the banks in the bor-
rower's community were unable or un-
willing"
Several republicans Joined democrats
against It and It was beaten Al to SO.
Senator Newlands declared he had
several changes which he wished to
propose to the measure but he said he
would prefer to have the democratic
naucus first pass on them. He began
sN Nagitation for q further caucus of
q emocrats.
Cail For Complete Reform.
complete reform Of the vast and
U 1pljcated machinery Of finance,
Banking and currency will be accomp-
lished by the bill. Its fundamentals
provide:
The issue Of currency, guaranteed by
the government, based on notes and
bills representing commercial trans
actions and backed by gold reserve.
The new currency Is expected to con-
tract and expand to meet. the varied
demands Of trade.
The concentration Of the bank re-
serves of the country in regional insti-
tutions capitalized by the oanks of
the country and controlled b directors
elected by the banks.
The concentration Of the bank re-
serves Of the country In regional in
stitutions capitalized by the banks of
the country and controlled by directors
elected by the banks.
The creation Of q market for the
nezotiatable papers which forms the
bulk OF the assets Of the banks where
In times OF stress those assets may be
easily and without loss transformed
into cash.
Regional Banks.
The establishment Of from eight TO
twelve great regional banks thruout
the country. which will centralize and
mobilize the reserve Of the local oenks.
The creation Of federal reserve
board OF seven members appointed by
the president, with final powers OF con-
( troll over the entire system.
In the foregoing general principles
the bill IL practically the same as
passed by the house, but In phraseoi-
ogy hundreds Of changes have been
made by the senate.
The senate has retained the mouse
plan to have each regional bank "a
hank Of banks. with the directorate
controlled by tho member banks and
the capital furnished by the forced
subscription OF national banks.
siitehcocIt's Intellectual Fight
senator Hitchcock Of Nebraska,
aided by the rep1blicans, made an in
effectual nsft to make those institu-
i tions public utility banks. owned by
s the public and controlled by the gov
4 ernment.
AS amended In the senate the bill
oroyides for sithe creation OF eight to
twelve regfonal banks ~ the necessity
may develop.
IS Under the house bill the earnings Of
fF,-