New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-06
Chairman Owen Aroused by Its
Tentative Adoption by Sen
ate Committee.
WILSON SENDS FOR WEEKS
Bay State Senator's Scheme
Subject of Discussion Later
at White House-Repub-
licans for Compromise.
LFrom The Trlbune Bureaul

Washington. Nov. 5.-A general plan
for the concentration of reserves under
the proposed currency system in the CITY
~ washington. under the immediate con-
troll of the Federal Reserve Board, was
tentatively adopted by the Senate pahk-
ing and currency committee to-day 49,.
President Wilson sent tonight for sen
ator Weeks. of Massachusetts. Repuon-
can member Of the Banking anu Cui
rency Committee, and discussed the s''-
uation with him for an hour.
The Senator declined to talk OF MS Vlsi''
hut II is understood that he has com
promise plan, in which Senator hoke
Smith, of Georgia, is said to nave oeei'
endeavoring TO interest many Democrats
and which would retain most OF lhe
features of the House bill. 1t is believed
that the President told Mr.. Weeks JUST
what parts Of the bill he considered tun-
damental and essential and what features
OF il he regarded as debatable.
Senator Weeks's visit Is interpreted as
a sign Of closer cooperation between the
Democratic and Republican members OF
the committee in an effort to pass cur
rency legislation as speedily as possloie
There is little doubt that the Republican
members Of the committee will yield some
IL not many OF their contentious TO meet
the parliamentary situation. so long as a
rystem which can be put into successful
operation is devised.
Two RecaIctrant Democrats.
The plan adopted to-day was proposed
partlv by eSnator Reed, who also sus-
gested that the number Of regional oanhs
be increased 10 twenty-six. Without COM
hitting itself to the details OF the plan,
the committee Endorsed the principle Oh
mobilizing a portion of the reserves III
Washington by vote OF 20 D. senators
Hitchcock and Reed voting with the Re-
publicans.
The action of the committee is not maj
and II is possible that the mobilization
proiect will yet be abandoned II met
,.i,b tho annroval of a majority Of the
members largely because 1t obviates the
criticism made against the provision IN
the House bill authorizing the federal
hoard 70 compel one regional bank to
radisoount the paper OF another With q
norton of the reserves in Washington, IL
was argued, the board could nseit meet
the demands of regional bank without
calling upon another bank.
The fact. too, that portion OF the large
reserves Of New York would be imme-
diately available for use by the board
N meet the demands Of regional banks
I'm other parts of the country was not
without weight with some members OF
the committee.
The committee will dispose tomorrow
of the questions of the stock ownership
of regional banks and the organization OF
the boards Of directors. II is almost GER
tain that the public will be allowed an
onportunity 10 subscribe for at least
rortion of the stock Of the regional banks.
ON the question of control there is
greater diversity Of opinion. The ad-
rninistration members of the committee
sunnort the provision of the House bill,
which gives the banks six out of the nine
directors. Other members demand that
The banks be given no voice whatever.
Calls II Central Bank.
Two plans before the committee VIII De
voted upon tomorrow. One provides Tor
the appointment OF four directors by the
hanks and four by the government, the
ninth member to be chosen by them. The
,ther provides that the government Shall
,nnoint Ave out of the nine directors.
The new plan was characterized by
Chairman owen. chief administration
supporter in the committee, as "equlVa-
lent to a central bank"
AS finally voted upon the proposlton
was a modification Of plan proposed py
Senator Reed, who suggested 1t as
means of composing the wide differences
among members Of the committee. While
Reed and Hitchcock Joined with the Re-
publicans In voting for the plan, II was
opposed by Senator'S Owen Pomerehe'
Hollis, OGorman and Shafroth.
Senator owen was plainly agitated over
the progress Of affairs in the committee
to-day. After the vote on the Reed pro-
uosal he said that II permitted an OPP
portunity he would demonstrate that the
plan would not work.
'This plan would deplete the resources
of the various regional banks to degree
which the supporters Of the scheme have
not thought Of" said Senator owen after
the committee adjourned tonight. 81
will undertake to show that the regional
banks would be hampered and restricted
in their rediscount operation II this plan
prevails. The matter is stu pending"