Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-12-22
CUR
Continued from Page One)

Among the more important dacis-
ions of the committee TODAY were the
following: The minimum capital stock
OF each national reserve bank was
fixed at $1,000, 0o0,toa compromise be-
tween the $3,0o0,08d minimum of the
Senate bill and the $1,000, 900 minimum
of the House biIl
The Senate's provision for from
eight to 12' regional banks was ac
cepted by the House, in place of the
minimum of u fixed in the House bill.
The Senate's provision that each
member bank must subscribe for
stock of the regional bank in its ter
r1tory equal to six per cent. of the
member banks capital and surplus,
was accepted by the House to replace
its own provision that the subserip-
ton must equal five per cent. of the
member banks capital
The Senate yielded on its provision
that no Glass b" director of a region
al bank could be a stakeholder in any
member bank. This would permit the
three directors who represent "agri-
cultural. commercial or Industrial ILL
terests in the directorate of each re-
gional reserve bank to own stock in
local banks in their district.
The attempt of the House conferees
to have the secretary of agriculture
and the comptroller of the currency
made members of the organization
committee to inaugurate the new sys-
ten, and permanent members of the
federal reserve board held the atten-
ton of the conference through much
of the afternoon. The House bill in
Guided these federal officers as merl-
bers of the board while the Senate
allowed only the secretary of the
treasury to remain on the board.
House conferees insisted that the ex-
perience and knowledge of the comp
troller and the secretary of agricul-
ture should be maze available for the
board, that is, to govern the new
banking system.
After a lengthy argument the House
conferees agreed to accept the reserve
section written into the bill by the
Senate. Under the House bill a re-
serve of 80 1-3 per cent. of gold was
required behind the federal reserve
notes which will constitute the new
L
to in conference provides for a 40 per
cent. gold reserve with a tax of one
per cent. on depreciation down to S21a
per cent. and graduated tax below
that point
The Senate receded from an amend
ment which would have admitted to
re-discount by the regional banks ac-
ceptanees based upon domestic ship
ments of merchandise. The House
conferees yielded to a Senate amend
ment which will allow the secretary
of the treasury discretion in the de-
posting of government funds in the
new regional banks. A compromise
was arranged as to the forcing of one
regional bank to re-discount the paper
of another, by which the vote of five
members of the reserve board would
be necessary to require such discounts,
and the conference struck out a SEN
ate amendment under which member
banks could have discounted with the
regional banks their own direct obli-
cations.
The conference agreed to retain a
Senate amendment providing that no
member of Congress shall accept any
division of profit in the new system.
The amendment providing that the
secretary of the treasury, the assist
ant secretary of the treasury and the
comptroller of the currency should be
ineligible for two years after leaving
the government service for any posi-
ton in a member bank also was
adopted.