The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1913-11-26
has THREE Bills
SENATE BEGINS TUSSLE On CUR.
RENCY PR9BLEa
Committee DISAGREE

Committee DISAGREE
Senator's Will Have to Pass on Thres
Separate Bills, Fostered by tn.
House, the Senate Democratic
commiSssemen S and the Republican
Members of the Committee Aidet
by Hitchcock.
Three separate currency bills, al
based upon the same general theory
will be laid before the Senate by the
divided banking and currency com
mittee, which has been split into two
distinct factions. Unable to agree on
amendments the committee will pre-
sent the Glass-Owen bill as original
ly endorsed by the administration
and passed by the House. The meas
ure, with amendments assumed tc
be acceptable to the President, vii
be submitted by Chairman Owen and
five other Democrats Of the commit
tee, Senators Pomerene, Hollis, Reed
O'Gorman and Shafroth. A bill ma
terially changing the structure OF the
House measure will be presented by
the Republicans, Senators Nelson,
Weeks, Bristow, Mclean and Craw-
ford, and Senator Hitchcock.
All three of the proposed bills con-
template the issuance Of currency
secured by commercial paper held by
the banks of: the country. Each pro-
poses the establishment of reserve
banks, which will issue the currency
In exchange for commercial paper to
the banks, which will hold the. re-
serves behind their deposits, mobil-
lied for use in any emergency, and
which will rediscount the paper held
by banks in the system, thus always
keeping available ample credit and
currency for use to ward off financial
crises. Each bill proposes to put the
entire system under the control of a
Federal reserve board to be appoint
ed by the president.
Although agreeing as to the pur-
poses to be ACCOMPLISHED by the pro-
posed legislation the three plans diff
fer in almost every point as to means
. provided to carry out these purposes.
AS it passed the House the Glass
Owen bill proposed the creation Of
IL regional banks. The Democrats
Of the Senate committee cut that
down to eight. the minimum number
to four, holding that the smaller
number could more effectively con-
centrate the reserves Of the country.
3, The twelve regional banks propos-
ed by the House bill would be owned
by the banks, through compulsory
subscription to the stock, and the
banks would elect, six Of the nine
directors Of each regional institution.
This plan was retained by the Demo
Gratis Of the Senate committee, al
though it was further provided that
II the banks did not furnish enough
capital to run the system the stock
might be sold to the public.
On this point Senator Hitchcock
and the Republicans departed from
the administration theory Of creating
a "bank Of banks" and materially
changed the bill. They provided that
the reserve banks capital should be
subscribed by the public. the banks
taking whatever part the public
would not take, and that the govern
ment. through the Federal reserve
board. should appoint Eve OF thernine
directors Of each regional bank. This
was the proposition which split the
Senate committee into two camps.
In the House bill the paper made
eligible for rediscount and as basis
for currency Is commercial paper,
based on actual merchandising trans
action, maturing in not less than
ninety days. This provision was re-
tanned by the Democrats, but the Re-
publicans broadened materially. Un-
der their bill a part Of the member
banks rediscounts may be made in
paper maturing up to six months:
Under the House bill and the draft
by the Senate committee Democrats.
the regional bank directors would
have discretion as to rediscounting
for member banks without limit. In
the Republican bill, each member
bank is given the right to secure re-
discounts up to the full amount Of its
capital and under tax to twice that
amount.
Both the House bill and the Owen
bill would allow country banks to
loan on one-year farm mortgages
The Republicans amended this to al
low banks to loan one-third Of their
time deposits on five-year farm mort
cages. y
The Republicans eliminated from
the bill provision which would have
required national banks to maintain
separate departments to handle saw
ings account business. Numerous
other difference. principally on minor
matters or relating to the language
of the measure, are apparent.
Shoots Women and Self.