The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-04-22
Nation Wide Plan in Congress
Is Made Public.
Hearings Planned if Tariff
Does Not Delay.
ESTABLISH IS RESERVE BANKS
Acting as DepOsitOries of Dis
counts in Regions.
Elasticity Calculated to Prevent
Amy Initiation.

Washington, April 22-Chairman
Owen, of the senate banking and cur
rency committee, called it's members
together today and advised them OF
| results of informal conferences with
President Wilson, Secretary McAdoo
and Chairman Glass of the house bank
ing committee on the subject of cur
rency reforms. Hearings are to be ar
ranged to be followed by joint session
of the currency committee of both
houses preparatory to currency legiS-
lation at the extra session of congress,
provided that the tariff is disposed of
without delay.
Senator owen and Representative
Glass have been looked upon as the
men who will frame a measure to De
known as the Owen-Glass bill to be
introduced at the same times and car
rying with it administration approval
While there has been no final agree
ment as yet as to the main features
of currency reform, certain prevalent
ideas, some of which eventually may
be found in the bill, became known to-
day.
These include:
Fifteen regional reserve banks
which would act as fiscal agents for
the government receiving deposits of
public moneys, acting as banks of dis
count for the banks of their respective
regions, and receiving a part of the
reserves of the banks of the country.
Currency would be issued through the
regional reserve banks. Practically all
the capital stock of these institutions
as well as any accruing profits would
be the property of the banks of each
region.
"A governing board to supervise
the regional reserve banks would be
established to consist of the secretary
of treasury, agriculture and the comp
finio
members; four directors chosen by the
banks of the country and two directors
appointed by the president of the
United States.
3-The elasticity of the currency
would be provided for by conditions
calculated to prevent initiation. Any
notes issued would be redeemable in
gold by providing a reserve for actual
gold redemption. There has been
some question as to whether these
notes should be United States notes,
advanced to the banks upon an inter-
est charge high enough to prevent in
flation, or be bank notes under like
conditions. State banks would be re-
Quired to increase their reserves.
4-The extent to which the reserves
could be used has not been determined
but one plan is in favor of permitting
their use under reasonable tax. With
respect to the rate of discount, it has
been variously suggested that the gov
erning board might require the rate to
be made progressive when there was
an increasing demand for currency so
as to stiffen the open market rate and
gold somewhat after the sys-
tenn used by the Bank of England.
5-One of the plans suggested and
which Representative Glass advocated
in a recent speech was to retire the
present bond secured currency, not at
once, but over a period of ten to fif-
teen years which might involve a re-
funding of the per cent. bonds with
the circulation privilege into per cent.
bonds without the circulating privi
leges. AS the bond secured currency
would be retired, a substitute currency
ba sed on commercial paper of a quail
fed class automatically would take its
place.
The plan that will be finally evolved,
the Democrat leaders assert, will be sub
stantially different from the so-called Aid
rich plan.
There is talk of establishing branch
banks abroad to obtain for American
bankers a share of the foreign trade and
transactions. With respect to
the subject of guaranteeing bank deposits,
however, the currency advocates are prac-
tically unanimous that this should be
kent separ3te from any currency bill.