New-York tribune., 1913-08-02
CURRENCY MEASURE
READY FOR CAUCUS
House Committee Democrats
Finish Work on the Bill After
Weeks of BiCkerlng.
3 MEMBERS STAND OUT
Ban on Interlocking Directo-
rates Among National Banks
Stricken Out-Advisory
Council Provided.
fFrom The Tribune Bureau


Washington, Aug. l. Ending hve
weeks or disagreement and pickering
the Democrats of the House Banking
and Currency Committee wound up their
work on the administration currency Dill
to-day. and the measure, except for posi-
bic corrections in phraseology. Is ready for
the Democratic caucus. The Democrats
did not reach unanimous agreement
on the bill. and a minority report. signed
by at least three members. is probable
The bill is vet To be submitted to the
full membership Of the committee. the
minority members having been barred
from the conferences Of the Democrats
In full committee the prospects are the
bill will have a bare majority or one as
suming that three insurgents Democrats
will vote with the Republican minority
Of seven. The party caucus. however
is expected TO save the face or tho ad-
ministration measure
Messrs Eagle. Ragsdale and Neeley
are the three Democrats expected to go
into the caucus with an adverse report
insurgent movement
Several relatively important amend
ments were made TO the bill IN confer
enCe to-day. The Democrats reversed
themselves on the amendment recently
adopted prohibiting interlocking direc-
torates among national banks. On re-
consideration the amendment was re-
jected. TO 3. and the bill will contain
no prohibition against interlOckng d.
rectorates. The President is said 10
have been responsible FOR this change
in sentiment I'm committee. the under
standing being that regulatory pro-
visions Of this character may be handled
in a supplemental bill. II at all.
The Henry -Ragsoale amendments, in
creasing the membership Of the federal
reserve board and providing a system OF
emergency currency based on agricultural
products a. security. were defeated In
committee to-day. Chairman Glass, Inn
mensely pleased. said the insurgent
amendments were bowled over on viva
voce vote
The Democrats approved the language
OF the amendment. creating federal
advisory council composed OF bankers.
who will make suggestions TO the federal
reserve board.
Each federal reserve bank is to select
one member OF the advisory council VINO
shall serve without salary but may be
reimbursed for actual expenses. The ad-
yisory council shall meet at least four
times a year in Washington. and II shan
have power to confer directly with the
federal reserve board. TO make oral or
written representatiOns concerning action
taken and 20 ask for Information and
give advice concerning redIscounts. note
issues. discount rates. open market oper-
atiors. reserves and other matters Of
policy confronting the federal reserve
board
An amendment was adopted incrcas ng
from ~ TO 81 per cent the share of the
government IN the excess earnings OF the
federal reserve banks and providing that
all earnings derived by the United states
from federal reserve banks shall consti-
tute a sinking fund TO be held FOR the re-
ductlon Of the outstanding bonded lndebt-
edress Of the United States said reduc-
tlons 10 be accomplished under regula-
tious prescribed by the Secretary of the
Treasury
Representative Necley introduced to-day
his resolution directing investigation Of
Secretary McAdoos charge that New
York bankers were depressing the price
OF the government per cent bonds to In
aucnce action on the currency bill