Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-11-15

| measure provides Tor system OF
eight regional banks to be capital
| lied by enforced subscriptions from
the national banks of the country
with unlimited powers of rediscOunt
and currency issue and the power to
hold reserves, the entire system to be
under the control OF federal reserve
| board.
Cut Down the Board.
In todays session the democrats
| Chairman owen and Senators Pom
creme, Hollis, Reed, OGorman and
Shanroth- made minor amendments
to the bill They cut down the fed
oral reserve board from nine, as fix
| ed by a former vote OF the commit
tee, TO seven, as originally fixed in
the house bill. The secretary OF the
treasury and six members TO be ap-
pointed by the president with re-
gard to the financial commercial and
geographical divisions OF the coun-
try" would compose the board Each
member would hold office for six
years and would receive $4,000 a
| year salary.
Into the deliberations OF both
branches Of the committee today the
question Of the guarantee Of bank
| deposits was injected. 1t was re
| ported during the day that the dem
ocrats had adopted an amendment
proposed in the senate by Senator
williams of Mississippi, providing
| for a tax Of one per cent on deposits
| to form guarantee fund. After the
bill was completed however, the
| democrats declared the matter had
been set aside and with other matters
would be considered in connection
with a bill revising the banking laws
to be taken up at the next session OF
| congress.
The republicans considered a prop
osition advanced by Senator Bristow
| providing that after the regional
banks had paid five per cent dividends
on their capital stock and had ac-
cumulated / 20 per cent surplus the
remainder Of the earnings should be
equally divided between the govern
ment and a fund to guarantee de-
| posits. Senator Bristow was allowed
time to draft his proposal into the
earnings sections of the bill. The
administration bin will provide that
the banks shall pay six per cent div
| idends on their stock. accumulate a
| 20 per cent surplus and that all the
earnings above that figure shall go
to the government.
The democrats eliminated from the
redemption section Of the bill the
provision that the new currency
should be redeemabe in lawful
money" as well as gold The re-
| demption was made on flat gold
standard but It was provided that
new reserve notes might be held in
the reserve OF member banks.
Senator Hitchcock and tn republI-
cans, holding that they were the only
bona fde banking and currency com
mttee. recognized today by designa-
| ton Senator Hitchcock, the reign
| ing democrat" as chairman.
Senator Hitchcock and the republi-
| leans went after the bill in vigorous
fashion They eliminated entirely a
provision allowing the appointment
| III receivers lVi lhNVlN'hN i'bAph''
banks holding that a receiver would
only tie up the entire reserves Of the
banks and that there was no posi-
bility OF a regional bank falling.
The republicans re-wrote the re-
discount section to provide that any
member bank with eligible paper
might secure as a matter Of right re-
discounts up to an amount equal to
its capitalization. Above that figure
their measure would provide tax of
one per cent for the first additional
fifty per cent OF the amou.t OF the
capital stock and two per cent for
the second additional fifty per cent.
Above this point the consent Of the
federal board would be necessan to
further their re-discount.
The republicans declared they
would be unable to present their
draft Of the bill before the end OF
next week and that they would hardly
be ready 70 report before week
from Monday. The democrats are
anxious TO get the bill before the
senate and II IL probable an agree
| ,,art u,tii ba reached tomorrow 10