The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1913-11-21
Three Currency Bills to
Be Presented In Senate
ALL AGREE IN PURPOSE But
DIFFER AS TO PLAN
OF EXECUTION.
Committee Will Report Bills Sat.
urday and Debate Will Open
Early Next Week.

WASHINGTON. Nov. 20. Final
preparations were made today fo- the
battle over the administration cur
rency reform bill on the floor OF the
senate, which will begin SATURDAY y
Three separate and distinct currency
Dllis. all based upon the same general
theory. VIII be laid before the senate
by the divided banking and currency
committee
Unable 20 agree on amendments.
the committee will present the Glass
Owen bill. as originally endorsed Nv
the administration and passed by Tho
mouse. The measure, with amend
ments, assumed 10 be acceptable TO
me president. will be submitted hy
chairman Owen and five other Demo-
Gratis OF the committee. Senators
and Shafroth. A bill materially
changing the structure OF the house
measure VIII be presented by the
Republicans. Senators Nelson, WeeA..
Bristow. Mclean and Crawford and
Senator Hitchcock.
All three of the proposed bills
contemplate the issuance of n cur
rency secured by the prime CONNER
cial paper held by the banks OF the
country. Each proposes the estab-
lishment OF reserve banks. which will
issue the currency IN exchange for
commercial paper TO the banks.
which will hold the reserves behind
their deposits, mobilization for use IN
any emergency. and which will redIs-
count the paper held by banks in the
system, thus keeping available al
ways ample credit and currency for
use TO ward of financial crisis.
Zach bill proposes TO put the entire
system under the control OF a fed
eraI reserve board TO be appointed
by the president.
Agree on Purposes.
Although agreeing as to the pur-
poses TO be accomplished by the
proposed legislation. the three plans
diner In almost every point in at
tempting to carry out those purposes.
As II passed the house the Glass
owen bill proposed the creation OF
twelve regional banks. The Demo-
Gratis of tho senate committee cut
that down TO eight, the minimum
number the president was willing to
accept The Republicans reduced the
number OF four. holding that the
smaller number could more effective
ly concentrate the reserves OF the
country.
The twelve banks proposed
by the house bill would be
owned by the banks, through com
pulsoTy subscription TO the stock,
and the banks would elect six of the
AAHt NIttloTt OI tGcn regional In
stitution. This plan was retained by
the Democrats OF the senate commit
tee. although II was further provided
that II the banks did not furnish
enough capital TO run the system The
stock might be- sold to the public
On this point Senator Hitchcock
and the Republicans departed from
the administration theory OF Great
ing a "Bank OF Banks" and materi-
ally changed the bill. They provided
that the reserve banks capital should
be subscribed by the public, the banks
taking whatever part the public would
not take. and that the government
through the federal reserve board
should appoint five OF the nine d.
rectors of each regional bank. This
was the proposition which split the
senate committee into two camps.
Reduce the Reserve.
Each Of the bills materially re.
duces tho present reserve which na-
tional banks must hold against de-
posits. The house bill would fix tho
reserve NJ 10 per cent for country
banks and IS per cent for banks IN
present reserve cities. These rates
were retained by the administration
forces in the senate committee. Dut
the Republican wing cut down the
reserves OF the city banks TO Is per
cent
In the house bill the paper made
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