The Sentinel=record., 1913-12-20

of California, Republican.
 The House will name it's conference committee tomorrow. Many of the chief points of difference already have been gone over between currency leaders of the two houses In confer ence with Secretary McAdoo of the Treasury Department, and it is be- lieyed but short time will be re- quired to reach compromise
 Among the chief points of differ ence between House and Senate are the following;
 The House provided for twelve re- gional banks, the Senate for from eight to twelve, discretion being left to the federal reserve board.
 The Senate added a provision ere ating a fund to guarantee deposits ot failed banks that are members of the reserve associations. The House linn tied the rediscount of commercial pa per at the regional banks to that ma turing in ninety days; the Senate pro yided that 1S0-day agricultural paper could be accepted under certain limi. tations.
 The gold reserve required of the re- gional reserve banks against circuat ing notes was placed at B 1-3 per cent by the House and at 40 per cent by the Senate.
 Banks would be permitted to loan on five-year farm mortgages by the Senate bill; on one-year mortgages by the House bill,
 Senator LaFollette proposed two amendments just before the bill came to vote, which caused mild sensa- tion One of them was written into the bill and the other was rejected by an overwhelming vote.
 The first provided that Tho United States senator or representative in Congress shall be a member of a fed eral reserve board, a director in a federal reserve bank or an officer or director of any member bank" 'T do not beneve that any United States senator or member of Congress should be allowed to directly or indi- rectly prof. from tlis legislation" said Senator LaFollette. there have been intimations afioat that organiza- tions are contemplated under this leg isla.ion that may be participated in by members of one or both houses of Congress"
 This amendment was adopted with out a roll call The second amend ment provided that no member of the federal reserve board, any officer or director of a regional bank or member bank should be a director or officer of any other bank, trust company or insurance company. This, Senatorial Toilette said, was designed to prevent the money rust" from gaining con trol of the new system through inter- locking directors.
 The Standard Oil Company" he said, started out some years ago to combine enough of the banking inter- ests to effect a control of the finan- cial situation. A dozen leading banks and trust companies were brought to- gether into an organization at the head of which stood the National City Bank Another group, the Morgan group, was organized with the Nation il Bank of Commerce at it's head, con trolling another dozen banks and trust companies. This paralleled the Stand ard Oil group and these two great combines account for the control of money and credits and capital in the greatest center of finance in the West ern Hemisphere. This bill proposes to give to those same men who have organized this combination control of the regional bank in New York, and it does not stop there. They would reach ou. and elect directors in banks at St Louis, San Francisco Chicago and Boston"
 Senator Owen declared he favored prohibitions against interlocking G- rectorates, but that the La Toilette amendment would destroy much of the effectiveness of the new law. l. was defeated, 51 to 30.
 Senator Hitchcock announced his purpose to vote for the Senate bill as finally completed, because of it's great importance to the financial world. My whole fight has been to strength en and improve he bill and to prevent hasty and blundering legislation he said
 Senator Weeks said he would vote for the measure because it was '75 per cent good and only 25 per cent bad, and an improvement over exist. ing conditions.