Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-12-23
CURRENCY BILL
IN FINAL FORM
(Continued From Page ~

printed. In the senate the leaders en-
deavored to smooth away the obstacles
chief of which was an incipent protest
by the supporters of the provision for
an insurance of bank deposits-which
was stricken out of the bill in confer
ence.
Conferees Agree.
The conferees agreed on practically
all of the fundamentals OF the measure
and it passed the senate, including the
provision that not less than eight nor
more than twelve regional banks
should be created. The reserve re-
cuirements for banks entering the sys-
tenn which had been slightly let down
by the senate were strengthened IN
conference All amendment allowing
the use of the present bank notes and
the proposed new federal reserve
notes in bank reserves being stricken
out. In order to make change the
house conferees called in Representa-
tt, es Buckley of Ohio, member of the
house banking committee, who made
an extended argument to show that
the provision was unnecessary.
The last long drawn out struggle of
the conference resulted from the ad-
ministrations determination that the
COMPTROLLER of the currency should be
given place on the federal reserve
board which will control the new sys'
tenn. The senate conferees were even
Nv divided on this proposition, three
senators Joining with the house MEM
bers of the committee in supporting
tho administration contention. 1t
was nearly daylight when a single
shifting vote brought the conference to
a close.
Accept Senate Amendment.
ferees know that they favored an in
crease.
A compromise plan for retiring the
The conference accepted the senate
amendment increasing the gold re-
serve behind the new notes to be
issued from 33 1-3 per cent as fixed in
the house bill to 40 per cent with
graduated tax on depletion as arrang-
ed in the senate. 1t was understood
that President Wilson and Secretary
of the Treasury McAdoo let the con-
two per cent bonds on which the pres
ent currency is based is. written into
the bill by the conference.
Under the plans $3G. 100000 worth of
these bonds will be purchased each
year beginning two years after the
system is placed in operation by. the
new regional banks Of the present ma
tional banks On one-half Of its hold
ings each regional bank may issue cur
rency. The remainder will be refund
cd in three percent, thirty year bonds
or three per cent one year treasury
notes, which the banks must agree to
renew each year for thirty years, An
other senate amendment that was
crushed out in the conference was the
proposal to guarantee bank deposits.
Applications Arrive,
More applications from national
banks for membership in the new fed
eral reserve system piled into the
treasury today. Some came from Salt
Lake City, Pasadena and Cotton, Cal,
Perry, Iowa, and Lincoln, III. So far
no state banks or trust companies
have signified their intention of asking
for membership.
Owen Has Bill.
The elimination of the federal guar
antee of bank deposits from the new
currency bill is to be followed soon by
the introduction of separate bill to
establish such a guarantee. Chair
man Owen@of the senate banking COM
mittee expects to introduce it early
next month. ..