Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-06-19
Administration Leaders Get
ting Measure Ready to Pre-
sent to Congress.
TO GIVE u. S. CONTROL
OVER BANKING SYSTEM
Chairman Glass Denies the Draft of
Measure Has Been Made
Public.

Administration leaders today began an
earnest effort to whip the currency bill
into final shape and get into accord on
every detail With fundamentals and es-
sentials agreed upon by President Wilson.
Secretary McAdoo and Chairmen Owen
and Glass OF the Senate and House bank
ing and currency committees, the lead
ers today and tomorrow will attempt to
perfect 1t as an administration measure.
The fundamentals of the bill as agreed
upon have been published from time to
time. The measure would revolutionize
the banking and currency system of the
United States. and 1t has been the aim
Of it's trainers to place the financial sys-
tenn, especially the issue of currency.
under the control of the government.
AS now agreed upon, the country would
be divided into not less than twelve re-
gional reserve associations, and all ma
tiOnal banks would be compelled to be-
come members of the reserve associations
in their respective districts. State banks
will be eligible to membership.
Federal Reserve Banks.
The reserve associations will organize
federal reserve banks in each district
with a minimum capital of $5,OU,OO
which will be supplied by the member
ship banks at the rate of ~ per cent OF
their capital. These reserve banks VIII
receive the deposits of the federal gov
ernment and thus prevent the IIeasury
Department from locking up great guam
titles of money from circulation. Tne
reserve bank will be bank of banks
with the privilege of redscounting COM
mercial paper.
In the place of the national bank notes.
lit rtI' ha a narl0d
twenty years, the government will issue
to the federal reserve banks new klnd
of currency, probably to be designated as
federal reserve treasury notes. Inc
limit of this issue will be $JOU,W0,OOO. and
it will be backed by commercial paper
of prime quality or other valuable secur-
ity Elasticity will be given the system
in this manner. While these notes Will
not be secured by gold. they will be re-
deemable in gold by the Treasury or the
federal reserve banks
Means are taken to protect the United
States per cent bonds. which now form
the security for the national bank notes
by permitting the graduated retirement
of these notes over a period OF years
and their exchange for 3 per cent ponos
without the circulating privilege.
The government, leaders declare VIII
have an emphatic voice in the manage.
ment of the new system. Directors OF
the federal reserve banks Will conslSt oI
three members chosen by the federai re-
serve board. one OF Wnom shaii oe ena
man. three members chosen by the puD-
lie interests in the district and three elect
ed by the banks.
Cabinet Members on Board
The federal reserve board will consist
of nine members, composed OF the Secre-
tary of the Treasury, Secretary OF Agri-
culture and probably another cabinet OF
f1cer as ex-officio members, and three
members chosen by the President OF the
limited States and three by the central
reserve banks.
General denial that the alleged cur
rency bill, printed in several morning
papers. is the actual administration Dill
which will be introduced into Congress
within a few days was made at tne
Capitol today, and especially vigorous
in his denunciation of the publication
was Representative Glass of Virginia.
chairman of the banking and currency
committee of the House.
Mr. Glass said that there is only one
copy Of the bill in existence, ana that
it would have been a physical impos-
sibility for any newspaper to nave IL
for publication last night.
1t is understood that Mr.. Glass keeps
his bill close to him ali the time and
that it is locked in a strong box at night.
Representative Bulkely of Ohio was
talking with Mr. Glass until = o'clock
this morning, in Mr.. Glass room. which
makes it highly probable that no informa-
ton regarding the bill leaked from the
Glass headquarters last night. Further
more. it is understood that not even the
President has a copy of the Glass cur
rency bill.
Glass Bill Is Complete.
1t is also true that the Glass bill is
completed, in the sense that 1t could
be presented to the House tomorrow, if
nothing happens to change it in the
meantime. However. the history Of the
bill so far shows that it may pass
through fire and birthstone before
night.
Representative Underwood who is
strongly opposed to any currency leg
islation at this session, is on his way
to Washington from the University of
Virginia and his Office has received to-
day great many telephone calls from
the White House. This was taken to
mean that the President is anxious to
get in touch with Mr.. Underwood as
soon as he arrives.