Daily Kennebec journal., 1913-12-19
NEARS CLIMAX.
Continued from Page One.)

little debate until Senator Owen pre-
sented one to authorize the federal re-
servo board to appoint attorneys, eX-
perts and assistants without regard
to the Civil Service laws.
Then the Republicans broke forth
in protest and prevented immediate
action. One amendment adopted pro-
vided that banks in the new system
could not employ former secretaries of
the treasury assistant secretaries,
comptrollers Of the currency or men,
bers of the federal reserve board for
two years after they severed their con-
nections with the government.
Another change gave the secretary
of the treasury discretion to use a
part of the earnings of regional banks
to build up the gold reserve The sal
airy of the members of the federal re-
serve board was increased from $4,000
to $4,000. A number of amendments
calculated to simplify the work of
putting the new system into operation
were adopted, and various changes
were made to facilitate the entrance of
state banks and trust companies.
Senators Root, Bristow, Burton and
Cummns attacked the Democrats for
tie proposal that the employees of the
board should be exempted from Civil
Service requirements.
1T is now apparent" declared Bris-
tow, that the haste enforced on the
consideration of this bill is not only
proposed to quiet the financial unrest
in the country but also to satisfy the
horde of hungry offlceseekers who
have beseiged the capital for the past
10 months. Opening up these positions
to partianship would force the federal
reserve board to go into politics wheth-
er it wanted to or rot"
Senator Owen declared that but a
small number of employees would be
affected by the provision, and asserted
that the amendment was proposed in
order that the federal reserve board
might not be hampered CT delayed in
beginning work.
When the Senate recessed at 6
o'clock the Democratic caucus reas-
sembled to perfect final amendments to
the BILL
when the Democratic conference ad-
Joorned at O'Clock 1t had completed
work on the bill and had endorsed
amendments covering a number of the
points most vigorously demanded by
the Republicans. These included pro-
vision for an extension of the time
limit on re-discountable commercial
paper of agricultural transactions
from 80 days to $50 days, with the
discretion left to the board of reserve
to accept the longer time paper; the
guarantee of deposits in state banks
that ioin ba
well as in the national banks and a
provision that would permit clearing
house associations to continue their
present system of examining the
transactions of the banks within the
clearing house association.
The Democrats determined to stand
by their amendment taking out of the
civil service the experts and officers of
the new currency system The amend
ment proposing to increase the gold
reserve behind the new treasury notes
from 35 per cent. to 40 per cent. was
further modified SO that an additional
tax OF l per cent would be imposed
when the reserve was not more than
flk per cent. below that figure and
an additional tax Of one and half
per cent fer each additional decrease
of tive and one-half per cert in the
amount of the reserve.
The amendments agreed upon by
the conference were adopted later in
the Senate. many of them without op-
position. The Republicans opposed the
provision exempting employees from
the civil service and We're Joined in
the vote by Senators Lane and Thom-
as, Democrats, but they were voted
down, "a to 30.
Concessions made in the bill to ac-
commodate agricultural notes were the
result of an amendment introduced in
the conference by Senator Smith of
South Carolina and supported by all
of the southern and western Demo-
Gratis. The provisions agreed upon pro-
vide that Notes, drafts and bills
drawn or issued for agricultural pur-
poses having a maturity note exceed
ing six months may be discounted in
an amount to be limited to a percent
age of the capital of the regional re-
serve bank to be ascertained and fixed
by the federal reserve board"
Democratic leaders for a time contem-
plated trying to pass the bill tonight,
but finally gave it up. The measure was
so nearly completed, however, that it
was believed it would be passed tomor-
row afternoon.
The most important change made to-
night was reduction in the rates of
taxation of emergency currency that may
be issued under the existing Aldrich-
Vreeland law, which thus far has never
been called into operation. An amend
ment adopted at the request of Senator
Owen and intended to ease the situation
until the new law can become fully oper-
ative would reduce the taxation rate on
emergency currency from per cent to
8 per cent. for the first three months the
notes may be in circulation. After that
the rate would increase one-half per cent.
in month until it reaches per cent.
With one exception only, amendments
offered by Senator Owen with the con-
sent of the Democratic caucus were
adopted tonight. An amendment propos-
ed by Senator Norris and accepted by
the Democrats would make the rights of
depositcrs in failed banks preferential
to the rights of any other creditors in
their claim on the banks guarantee fund.
The redemption provisions of the new
law as finally agreed upon by the con-
int xry;u bo tod n