The Washington herald., 1913-11-16
MINORITY SPLITS
over CURRENCY.
Hitchcock Committee Divided
on Government Guarantee
Of Deposits.
MAJORITY FINISHES BILL
Administration Senators Complete the
Meaure-Three Reports to Be
Made 10 Senate.

Six members Of the Senate Banking and
Currency Committee, the five Republicans
and Senator Hitchcock. Democrat, yes
terday agreed on a plan for guaranteeing
deposits in national banks Thus there
has been injected into the currency sit
uation one of the most troublesome ques-
tions that has bobbed up in recent years
in connection with efforts toward bank
ing and currency reform.
A guarantee Of bank deposits was one
of the propositions advanced by William
]. Bryan in his last Presidential cam
paign- Mr.. Bryan proposed to tax the
banks themselves, but the scheme
adopted yesterday by one wing of the
Currency Committee contemplates an
other method
Senator Weeks of Massachusetts,, Re-
publican, was opposed to the guarantees
proposal and Senator Nelson of Mime
sofa expressed strong doubt as to the
feasibility of the scheme. They. however.
were out-voted. and it will go into the
bill that the Republicans and Mr.. Hitch
cock will report.
The plan as il was adopted was evolved
by Senator Bristow of Kansas, and pro-
vides that, after the necessary expenses
and a 5 per cent dividend to stockholders
have been met, the net earnings of the
new regional bank system shall be ap-
equal OF 20 per cent of the capital stock.
After this the excess of earnings shall be
divided, three-fourths being applied to
the refunding OF the per cent govern
ment bonds now used for banknote cfrcu-
lation and the other one-fourth to a fund
to indemnify depositors in national banks
against loss
Vote Was Four to Two.
Sa,atorS UaaLs a,5 NaIs,r will rarorf
adversely to the Senate on the plan The
vote in the committee OF six was to ..
To the surprise of his Republican col
leagues, Senator Mclean of Connecticut
voted for the Bristow- proposal The
other votes were cast by Mr.. Bristow
and Senators Crawford and Hitchcock.
The dangers in the action lies chiefly
in the fact that il will give impetus to
the demands that have been made that
legislation of this character in one form
or another be included in the currency
bill 1t was with considerable difficulty
that the question of guaranteeing bank
deposits was headed on by the House
leaders, and il it once gains headway in
the Senate il is certain to revive the
previous agitation. President Wilson has
stood against the incorporation OF the
guarantee proposition in the banking and
currency bill. for he feared it would lead
to a big controversy.
The six Democratic members of the
committee who have stood with the ad-
ministration yesterday submitted their
perfected bill to their Republican col
leagues.
After laying this exhibit before the
opposing wing OF the committee, the
six administration Democrats dis
persed. leaving the five Republicans
and Senator Hitchcock at work on an
other bill that probably will be ready
on Wednesday or Thursday of this
week. It is the expectation Of both
wings of the committee that they will
be ready to submit a report to the SEN
ate not later than Thursday. An agree
ment will be made and a unanimous re-
port submitted on all points in COM
mon in the two bills, and on so many
others as can be reconciled- Separate
reports will then be submitted as to
other fundamental features of the bill
Debate may begin as early as week
from next Monday. The Owen bill IS
the Glass bill with such amendments as
Chairman owen jotted down from time
to time as a result ofSehe hearings No
one entertains any serious doubt that ths
Owen bill eventually will pass the SEN
ate. with such amendments in transit as
may be accepted by Chairman owen, un-
less unexpected Democratic insurgency
breaks out on the floor.
Il fail to see how it will be possibis
to pass any currency measure before
Christmas and perhaps before the mid
die of January" said Senator Weeks yes
tCrday. Many Senators will desire to
discuss the bill and they should No
satisfactory bill can pass the Senate. but
the one that goes through will be better
than the Glass bill and worse than the
bill Congress ought to pass if it would
give the country a proper banking sys-
tenn"