The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-12-20
MEASURE PASSES
BY VOTE OF 81 TO "a
Bill Will Completely Re
form All the Vast and
Complicated Machinery
of Finance, Banking and
Currency Believed 1t
Viii Reach the President
by Monday and Be Ap-
proved by Him.
nY AssocIATEp PREss.

washington, Dec. 19.-The admins
4ra4foY1 currency bill passed today In the
senate. BY q vote or n1ty-louI "
thfuky-four it was adopted as SUD
eytftufe for the house BILL The meas
IRE was framed by the democratic
senate caucus, and is considered sat
Isfacfory to the president The demo :
Gratis voted solidly for the measure ana
Poindexter, progressive. ana siA ~ ~.
publtcans Joined the majority In the
final vote.
Hitchcock. the democrat, who led the
republican opposition on the banking
committee, presented substitute Dill,
which was defeated, and he joined the
majority in voting for the admins :
fratfon measure, known as the owen
bIII The senate tonight namedsa con :
ference committee to hasten the final
enactment Of the measure. The COM
r1lftee will work with the house body
TO compose the wide differences be-
tween the house and senate bills. Many
say they expect the measure Will Teacn
the president for his signature Mon
day night.
Among the chief points OF difference
between the house and senate, are.
The house provided for twelve region
IL banks, and senate for from eight TO
twelve. discretion Being LEM 70 Ine re-
serve board The senate provided Tor
4 guarantee fund to secure deposits
az failed hanks that belong to the re-
serve association. while the house Inn
ft6d the xediscount ot colnn1ercaad pa
per 81 the regional banks TO that ma
turing in ninety days. The senate pro-
Nided that enc hundred and eighty
1fay agriculture paper could be ACCEPT
ed under certain Limitations The SEN
ste placed the gold reserve required
~ regional reserve banks against cir
ssulatiug notes at forty per cent. and
house at twenty-t three. and one-thlrd
Banks are allowed to loan on hve-year
farm mortgages by the senate and
one year by the house.
A GREAT REFORM.
A complete reform of the vast and
cornpli Gated machinery of finance
banking and currency will be accom-
plished by the administration currency
bill. It's fundamentals PROVIDE
The issue of currency, guaranteed
by the government, based upon notes
and bills representing commercial
transactions and backed by q. gold re-
eerve. The new currency is expected
TO contract and expand to meet the
varied demands Of trade.
The concentration Of the bank re-
serves OF the country in regional in
stitutions capitalized by the banks of
the country and controlled by direc-
tors elected by the banks.
The creation OF a market for the
negotiable commercial paper which
forms the bulk of the assets of the
banks, where in times OF stress those
assets may be easily and without loss
transformed into cash
The establishment of from eight to
twelve great regional banks through [
out the country, which will issue cur
reucy, e-discount paper and centralize
and mobilize the reserves OF the local 4
banks.
The creation OF a federal reserve |
board of seven members appointed by /
the president with final powers of con-
troll and supervision over the entire
system
In the foregoing general principles |
tho bin is practically the same that |
passed the house. But in phraseology /
and more or less important details, |
hundreds of changes have been made /
by the senate
The senate has retained. after q /
contest, the house plan to have each /
regional bank bank OF banks with i
the directorate controlled by the MEM /
ber banks and the capital furnished |
by enforced subscription OF national