Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-29
CAUCUS PUTS 0. X.
ON CURRENCY BILL
Only Nine Democratic Votes
Against the Measure on
Final Test.
GLASS SAYS INSURGENTS
FAILED TO CHANGE 1T
Contains No Material Provision
Contains No Material Provision
Which Did Not Originate
With Committee.

Carrying with it the marks of a
strenuous battle through the demo-
cratic caucus, the Administrations cur
rency reform bill was introduced into
the House today by Chairman Glass of
the House committee on banking and
currency. The measure emerged from
the caucus yesterday afternoon with
only nine democrats voting against 1t
and with 1853 in favor Of It, The nine
dissenting members were Henry. Eagle
and Galloway Of Texas. Hardwick of
Georgia, Lobeck of Nebraska, Buchan-
an and Fowler of Illinois. Neeley of
Kansas and Sisson Of Mississippi.
Immediately upon It's introduction
today. the bill was referred to the
banking and currency committee,
which will meet again Tuesday Chair
man Glass expects that little delay
will be met in committee and pre-
dicted today that within ten days the
bill would have passed the House, as
he understands many republicans will
vote for it. There are also several
strong republicans who will do all they
can to tear portions of the bill to
shrcds.
The main feature of the caucus of
yesterday was the adoption of an
amendment which was drawn to clarity
Glass Explains Bill.
| Chairman Glass summed up the bill as
| follows:
There has not been written into the
bill from one end to the other a single
sentence. except by the initiative of the
banking and currency committee itself
| which has altered in the remotest degree
/ fhn fin1 ~s~ of xL~ -
| originally reported by the committee t
| the caucus.
1.-The bill establishes twelve regiona
reserve banks. with capital of not les:
than s5.O0O,OOO each. to which nationa
| banks are required to contribute ar
amount equal to 10 per cent of their owl
stock and to become liable for an add
! tional 10 per cent in case of call. This
| it is estimated will give the regional re
serve banks a mbined paid-up capita
| of S1Oo.GDGD. These regional reserve
/ banks also are made custodianS of a large
part of the reserve money Of member
banks, estimated at about $41O,OOUO0O ir
| the aggregate. They also receive the
government deposits estimated at from
| $1JoUO,GUO to s2ou.OOO,OOO.
Powers of Federal Board.
| over the whole system of regional re-
| serve banks is to be a federal reserve
''aiN' Noii"4@IiHe VI ScNCil HeIlpeTS ulS
board is given extensive powers of super
vision. examination and control.
THE measure provides an advisory
| council of bankers without actual power
composed of one member from each OF
the twelve regional reserve districts
| one important provision is for the
gradual refunding, for period of twenty
years. of the United States per cent
/ bonds into q per cent government bonds
| without the circulation privilege. This
viii mean the eventual retirement of ma
| uonal bank notes. The circulation priv
| lege will thus revert to the government
| Itself, issuing through the regional re-
serve banks on a gold reserve of 81 l.:
per cent, to be provided by the banks
Reduction of Reserves.
| The notable reserve features of the
| bill contemplate reduction of the re.
| serve requirements of reserve and central
reserve cities from % to 10 per cent, and
| of all country banks from IL to II per
| cent. The federal reserve board is re-
| quircd to establish graduated tax on
| the amounts by which banks may be per.
| United to fall below reserve requirements
such tax to be uniform in its applications
| to all banks.
| National banks are compelled to be-
| come members of the system under pen
! atty OF forfeiture of charters, while state
| banks are permitted to become members
under regulations of the federal reserve
| board