Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-04-23
CURRENCY REFORM
Banking andCurrencyCom-
mittee Get Together.
Hearing 10 Be Arranged ReIa-
tive Legislation 10 Fo||owTaritf.
Informal Ideas Of System That May
Eventually Become a Law.

Washington, April 22.-Chairmar
Owen Of the Senate banking and cur
rency committee, called its members
together. today, and advised them OF
the results of informal conferences
with President Wilson. Secretary Nc
Adoo and Chairman Glass of the
House banking committee, on the SUBJ
ject of currency reform. Hearings are
to be arranged to be followed nv Joint
sessions of the currency committees of
both House and Senate preparatory to
currency legislation at the extra ses-
sion OF Congress, provided that the tar
if is disposed of without Unforeseen
delay.
Working informally obtaining the
views OF the President and his advis-
ers, Senator owen and Representative
Glass have been looked upon as the
men, who will frame a measure to be
known as the Owen Glass bill. to be
introduced at the same time in both
Houses and carrying with it admins
tration approval. While there has
been no final agreement 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. today. These included.
G-Fifteen regional reserve banks
which would act as fiscal agents for
the government, receiving deposits of
uublic moneys, acting as banks of dis
count for the banks III their respec-
tive regions, and receiving a part OF
the reserves of the banks of the coun-
try. Currency would be issGed through
The regional reserve banks Practical
~ all the capital stock of these insti-
tutions as we'll as any aeeruing profits
would be the property of the banks
of each region.
CA governing board to supervise
the regional reserve banks would be
established, to consist of the secre-
tary of the treasury, the secretary of
agriculture and the controller of the
currency as ex-oflic}o MEMBERS four
directors chosen by the banks of the
country and two directors appointed
by the President Of the United States
The details of this feature have not
been worked out but it is planned to
have seven to nine members, the ten
ire of the directors selected by the
ether directors.
(9)-The elasticity of the new cur
rency would be provided for by con-
ditions calculated to prevent imitation
Any notes issued would be redeemablt
in gold by providing reserve for ac-
tual 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 m
tiation or be national bank notes I'M
der like conditions state banks would
be required to increase their reserves,
(4-The extent to which the reserves
could be used has not been determined
but one plan would permit their use I'M
der a reasonable tax. With respect TO
the rate of discount it has been Variousiy
suggested that the governing board might
require the rate to be made progressive
when there was Increasing demand Tor
currency, so as to stiffen the open mar
ket rate and attract gold, somewhat after
the system used by the Bank of England
Ozone of the plans suggested, and
which Representative Glass advocated In
a recent speech, was to retire the present
hond-secured currency, not at once bu'
over a period of 10 or 10 years, which
might involve a refunding of the ? pei
cent bonds with the circulation privilege
into per cent. bonds without the circu
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