The Washington herald., 1913-12-19
CURRENCY BILL
TO PASS TODAY
All Serious Opposition to
the Measure Is
Abandoned.
CHANGES IN LAST HOURS
Republicans Protest Plan to Exempt
Federal Reserve Board Appointees
from Civil Service.
CHANGES IN LAST HOURS

All serious attempt to amend the cur
rency bill was abandoned by Senator
Hitchcock and his followers last night
and the measure will be passed today
with the oposition completely broken II
looked as II the bill might be put through
before the adjournment of the Senate
last night, but desire on the part OF
one or two Senators to speak a nnal
word resulted in postponing action. -
Eleventh-hour changes were made
by the Democrats, and some OF these
led to the harshest attacks that nave
vet been made upon the Democratic
currency legislation. One amendment
exempts all subordinate appointees OF
the Federal reserve board from the
Civil Service. Republicans immediate
ly interpreted this as another grao oy
the Democrats for spoils, and as rep
resenting the certain injection OF the
game of politics into the personnel
of this important banking board.
The Democratic caucus. as result
Of Senator Roots warnings, ralseo tns
percentage Of reserve required TO De heIu
against note issues from 50 Is TO ~ per
cent, and fixed a limit OF 81 l-z per cent
below which II should not be allowed 10
fall, and imposing tax OF per cent
on the deficit below 40 per cent
As finally adopted by the Senate, re-
damntion of the notes issued is maoe
mandatory in gold at the Treasury out
in gold or lawful money at the elecuot
of the holder of the note at the reglonAl
reserve banks.
Anotber amendment adopted last night
nernnits the rediscount by the FeoeraI
reserve banks of six months Agricultural
paper. Ga.
The Senate also agreed to admit state
banks to the privileges of the guarantees
or insurance fund to insure depositors
against loss.
opposItion Gives Up Fight.
Opposition to the administration cur
rency bill, led by Senator Hitchcock OF
Nebraska, a Democrat. who was sup
ported by the Republican vote Oh the
Senate, realizing at 3 o'clock yesterday
afternoon that the Democratic side would
yield nothing not approved by the parry
caucus, withdrew from the struggle 70
amend and improve the currency bill.
Vote after vote on amendments onered
by Senator Hitchcock resulted in tabling
each and every amendment proposed oy
majorities ranging from to 13
At O'Clock Senator Hitchcock with
drew from the contest and Chairman
Owen began submitting amendments maze
In the party caucus Wednesday night or
approved by the Owen wing Of the Bank
ing and Currency Committee.
Among the amendments submitted oy
Chairman owen that were adopted with
out tn formality of roll call were the
following:
Admitting trust companies in the Dis
trict of Columbia to membership in theI
regional associations on the same con-
dition as those prescribed for member
banks in the States and Territories, and
the District OF Columbia
Amending the language of the bill to
remove the limitation now imposed byl
the national banking act on note issues
based upon bonds.
Several amendments Of minor impor-
tance to expedite the work of organiza- |
ton, among them one allowing the Or
ganization committee to appoint the
chairman Of the board of government
directors of the regional association
Authorizing the Secretary of the Treas |
ury in his discretion to use the surplus
net earnings of the Federal reserve banks |
either to build up a gold reserve in the |
Treasury or to retire the interest-bear- |
ing obligations of the government
increases in Salaries.
Increasing the salaries Of the MEM |
bers of the Federal reserve board from |
$4,000 a year. as proposed in the Owen
BILL to $4,000.
The first vote of the day came on a |
motion to table an amendment proposed |
by Senator Hitchcock to increase the |
amount of gold reserve required to be
maintained in the Treasury Department |
by the regional associations against note
issues from 40 per cent, as the Democratic |
caucus Wednesday night had decreed. to
IS per cent. The motion to table was
adopted by a vote of q to 40.
A motion by Senator Hitchcock to re-
Quire the paid-up capital of each re-
gional association to be 100000 instead
Of 5000, ~, as provided by the Owen bill, |
was tabled by a vote of 43 to 10. A mo-
ton by Mr.. Hitchcock to make the mini
mum number of regional banks to be es-
tablished six, instead of eight, as pro-
posed by the Owen bill. was tabled by
vote of q to 30. A proposal by Senator
Hitchcock for government control Of the