The Barre daily times. (Barre, Vt.) 1897-1959, 1913-04-23
RUSH REFORM
OF CURRENCY
Main Features of the Pro-
posed Measure Are
Completed
NO RADICAL OR
ABRUPT CHANGES
A Check on Initiation to Pro-
vide for Elias
ITCHY

Washington, April 233. Chairman
Owen OF the Senate banking and cur
rencv committee. called its members to-
pether Yesterday and advised them OF re-
suits Of informal conferences with Presl-
dent Wilson, Secretary MeAdoo and
Chairman Glass of the House banking
committee, on the subject of currency re.
form. Hearings are to be arranged to be
followed by Joint sessions of the cur
reney committee of both House and Sem
ate preparatory to currency legislation
at the extra session of Congress, proyid-
ed that the tariff is disposed of without
unforeseen delay. Working informally,
obtaining the views of the president and
his advisors Senator Owen and Repre-
sentative Glass have been looked upon
as the men who will frame measure to
be known as the Owen-Glass bill, to be
introduced at the same time in both
branches and carrying with it admins
tration approval
While there has been no final agree
ment as vet as to the main features OF
currency reform, certain prevalent ideas,
some of which eventually may be found
in the bill became known yesterday.
These includes:
L. Fifteen ItBluidt itStlNe bdHho
which would act as fiscal agents for the
government, receiving deposits OF public
moneys, acting as banks of discount Tor
the banks in 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 we'll as any ac-
cruing profits would be the property of
the banks of each region.
2. A governing boardto supervise the
regional reserve banks would be estab-
lished to consist of the secretary of the
treasury, the secretary of agriculture
and the comptroller of the currency, as
ex-of:cio members; four directors chosen
by the banks of the country and two di-
rectors appointed by the president of the
United States. The details of this fea-
ture have not been worked out, but it is
planned to have seven to nine members,
the tenure of the directors selected by
the banks to be longer than that OF the
other directors.
3. The elasticity of the new currency
would be provided for by the conditions
calculated to prevent imitation. Any
notes issued would be redeemable in
gold by providing 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 interest charge
high enough to prevent imitation, or be
national bank notes under like condi-
tions. State banks would be required to
increase their reserves.
A. The extent to which the reserves |
could be used has not been determined, |
but one plan would not permit their use
under reasonable tax. With respect to |
the rate of discount, it has been various
ly suggested that the governing board !
might require the rate to be made pro-
Rressive when there was an increasing |
demand for currency, SO as to stiffen the
open market rate and attract gold some |
what after the system 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 pres
ent bond secured currency, not at once,
but over a period of ten or fifteen years,
which might involve a refunding of the
two per cent bonds with the circulation
privilege into three per cent bonds with
out the circulation privilege. As the
bond-secured currency would be retired
substitute currency based on CONNER
cial paper of qualified class would au-
take its place.