The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-06-20
seek FEDERAL
BANK CONTROL
Currency Bill Trainers Give
President Power Over
Reserve Board.
NJ I'm BERSHIP Is ClT
Change Provides for I;lim-
inatiOm Of Bankers
Representatives.
DROP TAXATION FEATlRE
President and His Advisers
Leave Problem Of = Per Cent.
Bonds to Congress.
DROP TAXATION FEATl RE.

WAsniNuroS June - The Admins
ration currency revision hill was made
| public Officially tonight. The bill IS
the same as the detailed outline given
/ in THE SrN this morning save FOR the
/ two sections which II was pointed out
were To he revised by the trainers of
! the bill
The two sections changed relate 10
the composition OF the Federal reserve
board and the retirement Of the present
national bank notes and the plan re
gardng the outstanding per cent.
T. : bonds which are the basis OF the
present national bank circulation.
! The President and his advisers in
Congress decided NJ the last minute no,
to incorporate in the measure IA pro-
| VISION for the retirement OF the present
national bank circulation but To leave
, that. together with the question Of
caring for the . per cent bonds. to he
considered later as separate legislative
, problem
The Central Reserve Board is author
lied to issue $500. .0OO. 900 Of Treasury
, notes to the central reserve banks on
firs, class commercial paper and other
, security as outlined in detail in THE
SrS and every national bank IL allowed
To continue it's note issue exactly as at
, present.
Taxation Feature Dropped.
This permits the addition to the circu-
In - h. ptV,s - h.. .,,
amount provided under the present
Aldr!ch Nreeland emergency currency
law. but without the oppressive taxa
tion features of that law and under the
more favorable system of elasticity pro-
vided by the proposed new regional re-
serve plan
The bill as agreed upon until yester-
day provided for the authorization of
this $500. 900 issue. but also pro-
vided for the retirement of the present
| national hank circulation as fast ~ i,
was replaced 10y the new Treasury
serve board.
The President and his advisers in
Congress have dropped for the present
this provision from the bill. leaving the
| problem for settlement in the future. II
IL known. however, that an effort Will
! be made by leaders in the House to re-
! insert this retirement clause. both as
regards the national bank currency and
| the . per cent. bonds. into the cur
rency bill when 1t is introduced in the
| House. This II a subject that has
aroused good deal OF controversy. and
the President and his followers appay-
entity desire to leave the matter en-
tirelv to the decision Of Congress.
| The only other change made in the
bill was along the lines forecas,ed in
THE SuS.
| II IL proposed to increase the Presi-
dents power over the Fedora r-serv.
board. AS originally agreed upon. the
i board was to consist of three members
appointed by the President with the con.
sent of the Senate. three member.
elected by the Federal reserve bank.
and tfr>ee -otficio members, the Secre
| tary Of the Treasury. the Secretary o
Agriculture and the Comptroller of tn,
Currency. The membership of the boar,
! has now been decreased 10 seven. an,
the President Is To appoint four Will,
the Secretary of the Treasury. the Sec,
rotary of Agriculture and the Comp
trolirr of tn" Currency ar. to h. =,
! otftcio members. This IN reality give,
the President the power 10 appoint u.
entire board which shall control the new
banking systeip. This change was mad,
to meet the objection that has beer
raised that the danger uf bank contro
of this board ought 10 he reduced to .
minimum.
The Federal H-s-r,~ board.
Here is the section Of the curr.nc,
bill In its final form creating the Fedora
reserve board:
| Section ll--Th-re shall be created ,
| Federal reserve board which shall consis
| of seven members. including the Secretary
! or the Treasury, the Secretary Of Agii
| culture and the Comptroller of the cur
rency, who snail be members .x oihcio
| and four members chosen by the pr-siien
of the United States hN and with the ad
| vice and consent OF the Senate
The four members Of the Federal Il.
serve board chosen by the President an'
| confirmed az aforesaid shall each receive
| Comptroller of the Currency as rx uffic.,
| member Of said Federal reserv" boar,
shall in addition to the SALARY now pa,'
| him a. Comptroller receive the sum -
| 81. 900 annually for his services az mem
her OF said board OF those thus appointed
by the President at least one snail be
person experienced IN banking, and o
those hrst appointed one shall serve 10