Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-11-07
HEAD OF TREASURY
IN RESERVE BOARD
Senate Committee Votes to
Retain Him in New Cur
rency Scheme.
EVIDENCE OF PRESSURE
UPON THE DEMOCRATS
Petition for Caucus on Pending
Measure Circulated Today-Ad-
ministration Leaders Hopeful.


ministration Leaders Hopeful.
The Secretary Of the Treasury will be
retained as a member OF the federal re-
serve board in the new banking and cur
rency law. according to a decision by the
Senate banking and currency committee
today. The vote was 8 TO in favor of
retaining the Secretary of the Treasury
on the board. Senators Br:stow. Mclean
and Crawford. all republicans. voting
against this. Senator Bristow holds that
it will ciothe the Secretary OF the Treas
ury with too great a power.
The committee gave considerable time
today to discussion as to whether the
vote of the committee to limit the num-
Der of regional banks be reconsidered.
1t finally voted. to 5. to reconsider this
vote, Senator Crawford. republican. vot-
ing with the democrats for reconsidera-
ton. and Senator Hitchcock. democrat.
voting with the republicans against re-
cons deration. No action was taken.
however. for change In the number OF
banks before the committee adjourned
for luncheon.
The proposition before the committee
between four and eight. leaving the power
In the hands of the federal reserve board
to determine the number OF regiona.
banks.
Political Pressure Upon Democrats
Political pressure, it was said after th<
meeting, has been brought to bear upon
democratic members Of the committee &c
as to cause them to vote for a recon
sideration OF the vote by which the COM
mittee set four as the number Of regional
banks under the new system.
The administration has insisted thai
there be more than four regional banks
and it has strong support among demo
cratic senator's who are not members OF
the committee.
Senator Weeks, when asked today to say
, when the committee will be ready to re-
port the currency bill to the Senate. re.
piled Perhaps in ten days"
There was still strong talk today of a
democratic caucus ct the Senate. TO b.
held early next week, for the purpose OF
| considering the currency bill. petition
for the caucus was circulated today. Sen.
| ator Kern. the democratic leader OK the
Senate, is out of the city and will no,
return until next Monday
The prospects are that a caucus Will
| be held next week.
Anxious for Conference.
| 1--WE are anxious to have a conference
for the purpose Of learning from the dem
ocratic members Of the committee wha,
they are doing with the bill and to gtv,
| them our ideas as to what should b
DONE" said one OF the senators today
Whether the conference will be open Of
behind closed doors, and whether an At
tempt will be made to make the confer
ence a binding conference wil Dc de
Administration senator's were mor'
hopeful today. All Of the amend
ments SO far adopted by the COMMITTEES
many OF which are bitterly opposed b,
only, and 1t was believed that II today's
| lineup held all OF these amendment
could be reconsidered and rendered mort
agreeable to President Wilson.
Absentees Called Here at Once.
| Democratic leaders in the Senate de
cided last night that unless the Senat'
banking and currency committee prompt
ly voted back into the administration cur
rency bill some Of the fundamentals tina.
1t had eliminated. a party conference Of
caucus would be called for the beginning
of next week to consider the subject.
| kilograms were sent to absent demo
Gratis urging them to return to Washing
ton at once.
It became known that four admins
| tration supporters on the committee
Senators Owen, Hollis P0merene and
Shafroth-had been quietly at work on q
report which they probably will submit,
! to their democratic colleagues. Senators
| Reed, O'Gorman and Hitchcock. Should
I - H. ~~in L. hal y0r
that the plan will be to submit the re-
port to the democratic caucus or con
| ference.
Theory of Bill Altered.
| Amendments characterized by Chair
man Owen as altering the entire theory
OF the bilr' were written into the admin.
istration currency measure yesterday
afternoon by coalition OF republican
| and democratic members of the Senate
| banking committee.
| The administration supporters in the
| committee We're decisively outvoted on al
but one Of the points settled.
| Among the changes made yesterday art
ernoon were the following:
That the new currency to be issued be
Treasury notes, obligations Of the United
States loaned to the banks. and not bank
notes guaranteed by the government.
This SuStains the administration Dill as II
passed the House.
Vote on Redemption Clause.
That the new notes be redeemable in
gold by the regional banks and the
Treasury, and not in gold and lawful
money" as provided by the administra-
ton bill.
On the proposal to eliminate the words
Lawful money" from the redemption
clause of the bill, Senator OGorman
Joined Senators Reed and Hitchcock.
with the republicans. leaving only Sena-
tors Owen. Hollis, Pcme-ene and Shat
rotn behind the administration provision.
All Of the democrats, and Senator
Crawford, from the republican SIDE
voted to sustain the administration for
Treasury notes.