The Birmingham age-herald., 1913-09-19
Twenty-Four Republicans
and IA Progressives
Join in Support
ing the Bill
SENATE COMMITTEE
WILL NOW CONSIDER
MEASURE AT LENGTH
viii Probably Be Several Weeks Be-
fore Committee Is Ready to Make
Report-Bll Would EIimi-
nate Present American
Bank Note System

Washington, September lS.-The COM
pl9te revision of American. banking and
currency methods proposed in the demo-
cratic currency hill was started ON its
way to the statute books today. BY vote
OF 2s6 TO 81 the House passed the bill
in practically the same form in which it
was originally proposed. Twenty-four re-
publicans and Ia progressives Joined with
the democrats in voting for the bill.
With this overwhelming House majority
and the Endorsement of President Wilson
behind it, the measure was sent over to
the Senate There 1t was referred to
the banking and currency committee. be-
fore which hearings ON the subject already
are in progress. The committee may not
be ready TO report for several weeks.
Would Eliminate Bank Notes
The measure would eliminate the present
American bank note system. under which
banks issue currency against government
bonds, and establish currency to be ls-
sued by l2 federal reserve banks based
on sound commercial paper which the
government assumes the responsibility OF
redeeming in gold or lawful money
1t would place practically every phase of
banking under the control OF a federal
reserve board Of seven members, to be
appointed by the President and council
of bankers which would have only advis-
DRY powers. The system would be adj
minstered through the reserve banks sit
uated in i2 geographical divisions Of the
country each capitalized at about s5.oOo-
coz which capital must he sebacribed ~
!, the banks in the reserve district. zNt tae
eleventh hour the House wrote into the
bill disclaimer of any intention to alter
! the gold money standard fixed by law.
Bill Practically Unaltered
Ten days of earnest consideration in the
House failed TO alter the bill ia any
material particular, and it passed virtual
ly as drawn by Representative Glass of
Virginia. chairman of the House banks
ing and currency committee. after con-
ierences with Senator owen chairman of
the Senate committee; Secretary McAGoo
Of the treasury department and the Pres
ident Throughout the debate republicans
and progressives vigorously denounced
the methods employed by the democrats
4
details An caucus. The democratic lines
held firm however, and no minority
amendments were adopted on final pass
age but three democrats voted against the
bill.
Sentiment regarding the measure has
not yet crystalzed in the Senate. The
Senate committee is hearing interested
citizens from all over the country on the
principles of the bill. These hearings
may continue for several days at least
The committee itself is expected to take
weeks in the discussion OF the measure,
although the administration forces in the
Senate hope to force an early report 10
the floor. where further extended de-
bate Is expected.
Republicans Support Bill
A burst of applause greeted the vote On
the bill in the House. Three democrats
who voted against it were Representa-
tives Galloway IF Texas, Elder of Louis
lana and Witherspoon Of Mississippi
The republicans voting for it We're:
Baltz, Browne, Cary. Cooper Cramton,
Dillon, Eseh. Farr, Fess. Frear, Haugen,
Helgeson, Kent, Lenroot Linquist, Mapes,
Mclaughlin. Nelson, Porter. Samuel Smith
and j. M. C. Smith of Michigan; Smith
of Minnesota, Stafford Young of North
Dakota.
Two progressives, Temple and Walters
of Pennsylvania, voted against the bill
Fourteen other progressives voted for it,
They were Bell and stephens of califor-
mia Hinebaugh. Kelley of Michigan Kelly
of Pennsylvania, Lafferty, Lindbereh,
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