The Washington herald., 1913-04-23
WILSON EAVORS
FISCAL reform
After Conference with Presi-
dent, Senator Owen Is to
Start Ball Rolling.
HEARINGS TO BE HELD
II Is Assured that Legislation Will in
No Way Resemble the AID
rich Plan.

Following conferences with President
Wilson and Secretary McAdoo on the
subject OF proposed currency legislation,
Senator Owen of Oklahoma, Chairman
of the Senate Committee on Banking and
Currency, yesterday informed the mem
beers of his committee that ii was his
purpose to proceed with hearings, hav-
ing in view the probability OF currency
legislation at this extra session.
AS the result of this information, the
committee adopted a resolution author
izing Chairman Owen to ask the Senate
for authority to conduct a full investiga-
ton of the subject. Hearings will begin
in a short time at meeting to be held
May . The committee will decide on
some of the witnesses to be called. Chair
man Owen laid before the committee
yesterday the results of his conference
with the President and Secretary Nc
Adoo, and also gave them the benefit or
the opinions expressed to him by Chair
man Glass, of the House Committee on
Banking and Currency. As result or
his conferences with Mr.. Glass, it has
been arranged for joint sessions of the
two committees. and from these joint
sessions 1t is expected that report Will
be made to Congress on legislation re-
vising the currency laws. 1t is President
Wilson's desire that some currency legis-
probably disposed of before the extra
session adjourns
1t is the Judgment of Chairman Owen
and the members of the Senate commit
tee that no such general scheme OF cur
rency legislation AS is contemplated by
the Aldrich plan should be attempted AT
this session. The investigation Will De
directed toward eliciting information on
the movement of money with view Oh
preventing a stringency OF currency at
certain periods of the year, and with
general purpose of affording more cas-
ITCHY.
Favors HitchcOcl's Plan.
The sentiment thus far disclosed among
the Democrats in Congress who nave
been pursuing the subject OF currency
reform is against one central reserve
association. but favorable to the sec
tionaI reserve plan contemplated by
Senator Hitchcocks bill. The Senator's
bill provides for twenty regional reserve
banks, which would have the power to
act as fiscal agents of the government,
receive deposits of public funds, and
exercise the powers of banks OF dis
count in their respective localities and
act as reserve agents for the banks IN
their particular regions.
This plan contemplates that the cap
ital stock of all the institutions In the
particular reserve section, as We'll as
their profits. should be the property OF
the banks of that section or region. The
plan contemplates governing BOARD
with the Secretary of the Treasury at
the head to supervise the various re-
serve agents. i'm which the government
should be represented by the Comptroller
of the Currency and possibly other Of
ficials and to which certain directors
should beS elected by the banks.
nlan of gold redemption is provided.
The use OF the reserves may be regu-
lated by A tax. which should become
progressive if there were an increasing
demand for currency, something after
the plan of the Bank of England.
suggestion that is much in favor,
made by Representative Glass or the
House Committee on Banking and Cur
rency, contemplates the gradual retire
ment of bond-secured currency within
the next fifteen years, involving prob
ably the refunding of the outstanding =
per cent bonds of the government, which
carry the privileges of National bank
circuIa ton, and substituting ) per cent
bonds without the circulation privilege.
The plan would substitute for the bond
secured currency issues based on COM
nerciaI paper of undoubted value.
The Democratic leaders insist that any
plan now proposed is simply tentative,
but that whatever is finally determined
on will be substantially unlike the
Aldrich plan.