The Birmingham age-herald., 1913-11-15
COMMITTEE
COMPLETES REPORT
ON CURRENCY BILL
Bills of Both Factions of
Committee Will Probably
Go to the Senate
Next Week

Washington, November 1.-THE adj
MIN stration. currency reform Bill as
it probably will go to the Senate with
the approval of President Wilson was
completed tonight by six democrats OF
the Senate banking and currency COM
mittee. Senator Hitchcock and the five
republican members of the committee
continued to write into their draft of
the measure amendments which the
White House has disapproved. Ar
rangements probably viii be tomorrow
to send both bills to the Senate for
consideration some time next week
The democrats completed their draft
after working all day and well into
the evening in an effort to hurry the
bill along. AS completed the measure
provides for a system of eight region
al banks to be capitalized 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 a
federal reserve board.
Make Minor Amendments
In today's session the democrats
Chairman Owen and Senators Pomer-
enc, Hollis, Reed, O'Gorman and Shaf-
roth--made minor amendments to the
bill. They cut down the federal re-
serve board from nine, as fixed by a
former vote of the committee to seven
as originally fixed in the House bill
The Secretary of the Treasury and six
members to be appointed by the Pres
ident with regard to the financial.
commercial and geographical divisions
of the country" would compose the
board. Each member would hold Of
flee for six years. one term expiring
each year, and would receive $4,000
year salary.
Into the deliberations of both
branches of the committee today the
question of the guarantee of bank de-
posits was injected. 1t was reported
during the day that the democrats had
adopted an amendment proposed in the
Senate by Senator Williams of Missis-
sippi, providing of a tax of / per cent
on deposit to form a guarantee fund.
After the bill was completed, how
ever, the democrats declared the mat
ter had been set aside and with other
matters would be considered in con-
nection with the bill regulating the
banking laws to be taken up at the
next session of Congress.
Consider proposition
The republicans considered a propo-
sition advanced by Senator Bristow
providing that after the regional banks
capital stock and had accumulated
20 per cent surplus the. remainder of
the earnings should be equally divided
between the government and a fund
to guarantee deposits. Senator Bristow
was allowed time to draft his proposal
into the earnings sections of the bill.
The administration bill will provide
that the banks shall pay per cent div
idends on their stock, accumulate 20
per cent surplus and that AL the earn
ings above that figure shall go to the
government.
The democrats eliminated from the
redemption section of the bill the pro-
vision that the new currency should De
redeemable in lawful money" as well
as gold The redemption was made
on a flat gold standard but it was
provided that the new reserve notes
might be held in the reserve of member
banks on the same terms as gold.
Senator Hitchcock and the repub-
licans. holding that they We're the only
bona fide banking and currency COM
mittee, organized today by designating
Senator Hitchcock "the ranking demo-
crat" as chairman. They declared the
secret sessions. of Chairman Owen and
his administration senators were en-
tirely outside the activities of the COM
mittee. The matter probably will be
Strengthened out tomorrow when the
administration forces plan to go into
the committee meeting and endeavor
to arrange some programme for a re-
port
Senator Hitchcock and the republic
ans went after the bill in vigorous
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