The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-08-02
Committee Wins
CURRENCY Fight
Situation IN House Completely
Controlled BY Admins
iration Members.
FINAL VOTE DELAYED
Little Doubt Now Exists that Caucus
viii Indosse the Glass
Measure.

Currency yesterday TeJecteo propose
amendment to the administration bank
ing bill prohibiting a person who Is
member of the board OF a national banl
from serving in a like capacity upon tn
board of any other financial institution
The vote on this proposition and other
taken In the course Of the day shove,
Enthusiastically that the administrator
forces control the committee by a SAT-
majority.
Work on the administration bill wa.
concluded in the committee yesterday
The bill will come up for discussion IL
a Democratic caucus to be held on Au
gust II. Present indications are tina
eleven Of the fourteen Democrats OF
the committee will support the measur,
in caucus. II the insurgents are unabl,
to make any better showing In caucu,
than they made in committee they will
he hopslessly beaten, and the bill viii
60 before the House with the backing
of both the administration and the party
organization.
Leaders Arc Happy.
Administration leaders are in a happy
frame of mind over the outcome in the
House committee. While no vote wa:
taken on the bill in committee yesterday
noses have been counted. and the ad.
ministration is confident that eleven Of
the fourteen committeeman will stand
by the Glass-OwCi bill. 1t Is expected
that the insurgents will put up lively
has given assurances that vhe bill will
emerge unscathed.
The insurgents lost all along the lines
The amendment aimed at interlockins
copied from the report OF
the Pujo Money Trust committee, was
beaten. although II was tenta lively
adopted at a meeting Of the Glass conf
mittee held last week. The administra-
ton having made II plain that II was
opposed at this time to enacting ans
OF the Pujo recommendations into law
the committee decided not to write the
relating to interlocking d.
rectorates into the bill.
Another reform demanded by the in
surgents also was given scant considcrs-
ton. This was embodied in what were
known as the Ragsdale- Henry amend
ments. These amendments provided
among other things that currency should
TO issued on cotton, corn. and wheat
held In warehouses. They were pre-
r AIRED by Representative Henry Of Texas
the radical leader. and Representative
agsdale of South Carolina. a member of
the committee. II was plain that q me-
iority opposed such an innovation. emo
the insurgents did not take the trouble
10 ask for a division.
Although beaten the insurgents RAYS
not given up the fight. Representative
Eagle Of Texas will present a bill OF his
own providing for government mott is
sues. Mr.. Ragsdale will offer his corn
amendment Representa-
tive Medley OF Kansas will ask the cat
GUS to adopt some OF the recommends
lions of the Pujo report, notably the
Amendment relating to interlocking di-
rectorates- Representative Buckley Of
Ohio will present his objections to the
bill.
Senate Now Considered.
The administration is so pleased VITA
The banking situation in the House tina;
i already is taking steps to prepare the
way for the bill in the Senate. Sena-
tor Owen of Oklahoma. chairman Of the
Senate Banking and Currency Commit
tee, has announced that in his opinioI.
he upper House will pass the admins
ration bill.
1t Is known that unless President VII
son changes his mind on the subject that
ne will insist upon Congress remaining
n session until the banking bill has
been placed on the statute books. The
regards 1t as highly de-
'irable in the interest of stable BUSH
'ess conditions that new banking law
hall follow the enactment of the new
ariff.
A number of important changes made
n the past week were given to the pub
ic by Chairman Glass tonight Nearly
ii bankers who have expressed them
elves on the subject and many members
4 Congress have made objection to SUBJ
ection B of section u, which, as the
ill was introduced. authorized the Fed
raj reserve board to require or permit
Federal reserve bank to rediscount the
aper of any other Federal reserve bank.
This authorization was criticised on the
round that it gave large powers that
rove unfair in operation to many banks
nd sections Of the country. Yielding
o the objections made. the committee re-
wrote subsection B as follows:
That the Federal reserve board may
ermit or in time Of trouble require Fed
raj reserve banks to rediscount the dis
ounted prime paper Of other Federal re-
erve banks. all members Of the board
eing present when such action is taken
nd conserving to the requirement. The
v
FEDERAL reserve board shall be subject
ated bank of not less than /. nor greater
han ;, per cent above the higher of the
ates prevailing in the districts imme-
lately affected
Rescrve Changes Made.
Section q relating to reserves was also
As the bill was reported il
equired national banks in reserve cities
, maiptain for q period Of twenty-six
reserve of 3 per cent Of their
outstanding deposits. The amendment
dopted releases the reserves Of these
anks at the end of sixty days instead
{ twenty-six months. The effect of this
hange is to give these banks immediate
ash reserves with which to make sub
.riptions to capital stock in the new
ederal reserve banks.
Section of the bill providing for the
isposal Of the earnings OF Federal re-
erve banks was rewritten and changed
important particulars. This section |
3 introduced provided that the share |
olders should receive an annual divi- |
end Of s. per cent, such dividend to be |
1mulative. 1t provided further that one
alf of the net earnings, after dividend |
aims had been met, should be paid
ito a surplus fund until the fund
mounted to 20 per cent Of the paid-in |
apital Of the bank. The remaining one
alf was to be paid to the United States. |
he per cent dividend to be paid to |
is not disturbed by the |
mendment. However, 1t is provided |
,at of the net earnings above dividends
nd other lawful claims, 60 per cent
lalI be paid to the government and 40
er cent to the shareholding member
anka
The bill as completed provides for the |
efunding of government per cent /