The sun., 1913-11-22
Real Fight Will Then Begin
Over Hitchcock and Owen
Measures.
MAY LAST UNTIL MARCH 1
Chairmen Will Present state.
ments Of Views Of Com.
mittpe Members.


features have been printed from day to
day in THE Sun.
The bill agreed ON by the other wing
Of the committee was made public yes-
terday.
Both bills will be submitted in the
Senate AT noon tomorrow. each accom-
panied by q statement of the views of
the members OF the committee prOpos-
ing them
With the Introduction OF the bills the
real fight will begin. The general opinion
here now is that the debate will run until
well into January, and il liz not improb-
able that 1t may he March | before the
legislation is on the statute books.
Chairman owen OF the Banking and
Currency Committee IL writing the state
ment for the Administration followers
and his report was not completed until
late tonight Senator Hitchcock was
still working this afternoon on the state.
ment or the views Of the five Republican
members of the committee and himself.
The six Democratic Senators. led bS
Chairman owen. have closely followed
the Glass bill as il passed the House. 1t
strikes out the Secretary of Agriculture
and the Comptroller OF Currency as mem
bers OF the Federal Reserve Board. and
in this respect is identical with the amend
ment made by the other wing.
The Administration bill reduces to eight
the number of regional reserves from
twelve as contemplated by the House bill.
The Hitchcock wing proposes only four.
The Administration bill provides for an
Organization committee 10 be composed
OF the Secretary of the Treasury and not
less than two members OF the Federal
Reserve Board 1t also provides that this
organization committees work shall not
be subject to review 10y III. Federal
Reserve Board.
Oimcrs From Both other Bills.
In this respect the bill differs not only
from the house bill but also from the bill
reported by the Hitchcock committee
which abolishes the OBSERVATION-DISCLOSURES
and confers OH the Federal Reserve Board
authority TO organize the reserve banks.
The hill to be reported by Chairman
owen. presumably with the approval oi
the President. retains the features OF bank
ownership and bank control OF the stock
Of the regional reserve associations as tn.
House passed them.
The Hitchcock bill provides for public
ownership and public control II pro-
poses to open the stock OF the reserve as
sociations to popular subscription. reguir-
ing the banks 10 und"rwrlte the issue
and to take 40 much of the stock as the
public will not absorb.
Each bill contemplates a capital stock
In the reserve association equal 10 per
cent. of the total capital and surplus of
the member banks. which ii H. estimated
will amount to about Sl06.0Oo.000.
The owen bill provides for the pay
ment Of one-siNth OF the STOCK subscrlp-
ton on the call OF the organization COM
mittee or the Federal Reserve Board.
one sixth in three months and one sixth
in six months and the remainder SUBJECT
to call. payments To be MADE III soIu OF
gold certificates.
Both bills limit Subscriptions 10 the
stock To *lo,ooo.ooo
The owen bil! reduces the amour" "'
capital required for thr Federal reserve
banks from So.ooo'ooo 10 s"""o'""o'
increases the dividend tha' ma! ne pa"'
10 sIartHoiu'fs iio'" P'' N'''' -" "
irouse nNed IL. 10 per cent,
The Hitchcock hi'l nSes IN" ni''uei'a AZ
per cent the Same "s N,' 'ouSo o''.'
In making PROVISION i"i ''e 'n''
distribution Oh earnings the wv" "''' p'o
vides that an surplus ""one "''''eue
be PAID 10 the hlt'u ''"'vS "s - i'",
ch'ee '"A' .~.'P' t,,i,,
"A surplus iunu eoua' W :" P'' ''' " Wv
cap'tai s'o'N'
n.,. - ,,t..s,ocI mn
The Hitchcock bill provides that after
dividends have been paid one-fourfh OF
the surplus earnings shall be applied TO
the creation OF surplus fund equal 10
nor csn, he applied to "A trust fund To
guarantee depositors III the mehlper
banks.
This fund may be limited IN the JuoS-
ment OF the Federal ieseiN" ooaru "heh-
ever it has reached an amount 10 Iurhish
the necessary insurance All o'her sur
plus earnings will go To the 'hteu STATES
50 much Of the surplus earnings as are
paid over to the United states hoi use"
for the guarantee OF depos'ts shai' pe ap-
piled to the retirement his' oi Tue per
cent bonds and secondariiS TO any o,h'r
interest bearing oblisatlohs Oh lhe '"N-
ernment.
The owen bill increases IN" reserve re-
quired 10 be maintained sbS r"uefai re-
serve banks against deposits ana against
Federal reserve notes IN a'tuai clicuia-
tion to not less th'lh DO per cent? W pe
kept In gold or LAWFUL money
The Hitchcock bill requires reserves 10
be kept In gold.
The Hitchcock bill requires reserve 10
he held against circuia''oh VI re"e'"' re-
serve notes to the amount or 20 per cent
although In It's discretion the feuerai re-
serve board may allow ths reserve 10 'ai'
az low as ~ per cent put tnat ,o' ea'n