The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-10-21
WILSON OPENED WAY.
President Let Down the Bars for
Amendment to Money Bill.

| Washington, Oct. 21.-While the
hearings on the currency bill before
| the senate banking committee may not
end before Saturday, amendments
| have the attention of members. Pres
) dent Wilson's intimation that he will
not object to the changes in personnel
| of the federal reserve board and a re-
duction in the number of regional re-
serve banks has made it practically
( certain that the desire of many sem
| ators to make those changes will be
carried out with prospect of admins
tration approval. Many other impOr-
tant notifications will be taken up
when committee work begins on the
measure next week.
Among the proposed changes is one
that will go to the very basis of the
BILL the provision authorizing the re-
discount of commercial paper and the
issue of currency by the federal re-
serve banks The house provision,
some witnesses have held, was too
| broad, allowing practically all paper
| of certain maturities designated, to be
discounted. Others particularly rep
resentatives of smaller banks in the
middle west have commended that the
rediscount provisions would be use
less to them.
Senators Bristow, Hitchcock, Reed
and Nelson, have shown an inclination
to extend the length of the maturity
of a certain percentage of the paper
the reserve banks might rediScCunt,
six and nine months paper to enjoy
the advantages of the new system.
Some amendment along this line cou-
pied with a more definite designation
of commercial paper" probably will
be written into the bill.
Under the bill as passed by the
house the regional reserve banks may
discount paper without limit for their
member banks but no provision is
made that gives member banks the
ra1 n Re
Members of the committee practically
are agreed that it is necessary to pro-
vide that a member bank a matter
of right may apply for and receive dis
counts up to a fixed limit.
The compulsory feature of the bill
under which all national banks would
be required to join the system and
subscribe 20 per cent. of their capital
in stock of the federal reserve bank
of their district and turn over per
bank, also may be changed. In that
connection the committee 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. Another suggested amend
ment would limit reserve banks in
their clearingS to checks drawn by
banks, leaving the present collection
system for personal checks unchanged.
The provision limiting the dividend
to be paid by reserve banks to 5 per
cent. may be increased to 6, and the
provision that after the accumulation
of a 20 per cent. surplus all profits of
the reserve banks, except the divi-
dendS shall be distributed, 60 per
cent. to the government and 40 per
cent. to the stockholding banks, may
be changed to give all the surplus
profits to the government. The prob
lem of whether the federal reserve
banks are to be allowed to enter the
open market to buy, or sell commercial
paper in competition with other banks
to maintain the discount rate also will
be considered.
Victor MOrawetz of New York, who
was before the committee yesterday,
resumed a discussion of the bill when
the reading was taken up by the COM
Inittaa tO6aV