Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-04-22

IOrHl Hearings are 10 De arranged tC
be followed by joint sessions of the cur
rency committees of both House and Sen
ate preparatory to currency legislation at
THE extra session of Congress, provided
that the tariff is disposed of without un-
foreseen delay.
The committee agreed to begin hearings
upon currency subjects within a few
weeks At the end of short meeting
Senator Owen was authorized to present
a resolution in the Senate authorizing
the hearings. At another meeting, to be
held May >, the committee will decide
what experts shall be summoned to tes-
tify.
Will Bar General Remedies.
General currency remedies are to be
barred in the new series of hearings. The
Senate experts intend to pursue a few
definite lines of inquiry bearing directly
on the movement of money, the sectional
demands for currency and gold and fac
tors connected with imitation of the cur
rency and contraction of credits. Sen
ator Owen furnished each member of the
committee with the hearings of the Glass
and PujO committees of the House, in
which the general phases of currency re-
vision were fully developed.
views of the President and his advisers,
Senator Owen and Representative 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 houses and carrying
with it administration approval While
there has been no final agreement as yet
as to the main features of currency re-
forms. certain prevalent ideas, some of
which eventually may be found in the
bill. became known today. They include:
% Fifteen regional reserve banks
which would act as fiscal agents for
the government, receiving deposits of
public moneys. acting as banks Of dis
count for the banks in their respective
regions. and receiving 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 accruing profits, would
be the property OF the banks of each
region.
Governing Board Proposed.
the regional reserve banks would be
established to consist of the Secretary
of the Treasury, the Secretary Of Agri-
culture and the controller of the cur
rency as exofficio members; four di-
the country and two directors ap-
pointed 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 tenure Of the directors
selected by the banks to be longer than
that of the other directors.
go The elasticity of the currency
would be provided for by conditions
calculated to prevent imitation. ANY
III
gold by providing a reserve for actual
gold redemption. There has been some
question as to whether these notes
should be United States notes ade
vanced to the banks upon an interest
charge high enough to prevent in
fation. or be national bank notes
under like conditions. State banks
would be required to increase their re-
serves
% The extent to which the reserves
could be used has not been determined.
but one plan is in favor of permitting
their use under a reasonable tax. With
respect to the rate of discount. it has
been varfously suggested that the gov
erning board might require the rate
to be made progressive when there
was an increasing demand for cur
rency SO as to Stiffen the open mar
ket rate and attract gold somewhat
after the system used by the Bank of
England.
Changes Neither Radical Nor Abrupt
90 One of the plans suggested. and
which Representative Glass advocated
in a recent speech, was to retire the
present bond-accrued currency not at
once, but over a period of ten to fif-
teen years. which might involve a re-
funding of the per cent bonds with
the circulation privilege into per
privilege. AS the bOnd-secured cur
rency would be retired, a substitute
currency based on commercial paper
of a qualified class would automati-
cally take its place.
Those democratic leaders working on
currency reform declare the contem-
nor abrupt, but will merely perfect
the present machinery and facilities
of the country's banking system. The
plan that will be finally evolved, they
ferent from the so-called Aldrich
plan.
There is talk of establishing branch
banks abroad to obtain for American
bankers share of the foreign trade and
commercial transactions. With respect
to the subject of guaranteeing bank de-
posits. however, the currency advocates
are practically unanimous that this
should be kept separate from any cur
rency bill. and that if attempted at all, it
should be taken up after the monetary
reform is In actual operation. when bank
ers themselves might determine whether
they wished to establish an insurance
fund, possibly out of the earnings of the
regional reserve institutions.
May Clash on Early Action.
The present determination of President
Wilson to drive bill through the extra
session Is said to have been well indicated
to his callers. With characteristic sys-
tenn. the President has stopped talking
tariff, except as visitors force the sub
iect upon him, but he is interested in
every caller who shows symptoms of
knowing anything about the currency
problem. Mr.. Wilson never opens one
subject until he has closed another; and
the tariff Is practically a closed book as
far as his present thought is concerned
1t is possible the President may clash
with some of the strong minds of Con-
grcss over currency; not necessarily y
over details but uDOD the general promo