Evening star., 1913-06-26
CURRENCY MEASURE
|SREADY FOR HOUSE
Chairman Glass Announces
Bill Is Finally in Shape
for Introduction.
PUBLIC PRINTER GETS
COPY OF AMENDMENT
Limit of Notes to Be Issued by Fed
eral Reserve Board Raised
to $712,Oo0,0o0.

| Chairman Glass of the House commit
tee on banking and currency announced
| this afternoon that the new currency
| bill was finally in shape for introduc-
ton in the House. the copy with the
amendment having gone to the public
| printer. Mr. Glass said that the most
| important change in the bill was res
| toration of the feature of the original
| bill relating to the retirement of ma
| tional bank notes.
This clause. it will be recalled, was
| stricken out of the original. but sub
| sequent conference caused its rein
| statement. The national bank notes
are to be retired and the per cent
| bonds funded by 5 per cent bonds eN-
tending over a period of twenty years.
This will not cause contraction of the
currency, as the right of issue reverts
to the federal reserve board.
Has there been any change in the
federal reserve board?" he was asked.
NO. and there will not be answered
Mr. Glass emphatica This is one OF
the provisions of the bill which has
caused the greatest discussion.
Limit of Notes Raised.
The limit of notes to be issued by the
from 100000. 600 to s7l2OOO,OOO the
amount of national bank notes to be re-
tired.
board was permitted to fix the discount
for the regional reserves. In the
amended bill the regional reserve is
permitted to take the initiative, but
the rate must be approved by the
federal reserve board.
Also in the original draft the country
banks were required to keep per cent
reserve in their own vaults. per cent
with the regional reserve and per
cent additional in either place The bill
federal reserve board shall dictate
where this residue per cent shall be
kept.
Conference at White House.
President Wilson had about the cab
met table at the White House last
night the members of the Senate COM
mittee on banking and currency. demo-
Gratis and republicans. for a general dis
cussion of the currency question.
Last nights conference. by a coin
cidence. followed a hearing earlier in
the day by the President of four bank
presidents, who cOntended for repre-
sentation of the bankers on the pro-
posed federal reserve board and the re-
tirement of the present bond-secured
currency.
The President invited to the hearing.
which was sought by the bankers, who
| ers' Association, his associates in the
| framing of the administration bill, Sec
| retary McAdoo and Chairmen Owen
and Glass of the Senate and House
banking and currency committees.
| The views of the bankers were set
forth by Presidents George NJ. Rey-
nolds of the Commercial National
Bank of Chicago. Sol Wexler of the
Orleans. John Perrin of the Fletcher
National Bank of indianapolis and
Festus J. Wade of the Mercantile Trust
Company of st. Louis.
Want Bankers on Board.
After leaving the President the party
| adjourned to the Treasury Department
and there discussed the protests in de-
| tail. The bankers urged the increase of
| the federal reserve board, which under
| the present plan would be composed
| wholly of seven government officials. to
eleven members, four OF whom would
| represent the banks. These four would
be chosen by permitting the directors of
each Of the twelve regional reserve banks
to nominate one man and from the total
of twelve the President would be en-
powered to select four
The bankers virtually were in accord
| on the idea Of increasing the amount of
federal reserve Treasury notes above $500.
100000, or placing no limit on the ISSUE
and retiring the S712,OOOO0O Of currency
now secured by per cent bonds within
period of several years by refunding
the 2 per cents with 3 per cent bonds.
having no circulation privilege.
Possibility Of Amendment.
The President said after the confer
ence, which lasted three hours, that no
| changes would be made in the admins-
| tration measure before 1t was introduced,
but that the proposals made by the bank
ers today would be fully considered after
| the bill was launched.
The President described his conference
| with the senators as an interchange of
| views on the general subject Of banking,
| with only casual discussion of the details
OF the bill. He said that he took 1t for
granted that his visitors were In favor
| of legislation during the present session
| and discussed with them chiefly funda-
| mental principles.
OF the five republican minority men,
bers on the committee Senators Bristow
| of Kansas, Weeks of Massachusetts and
| Nelson of Minnesota attended, the alb
| sentees being Senators Mclean of Con-
| necticut and Crawford of South Dakota.
| Were there. The republicans declared
afterward that they had expressed their
| views freely to the President, but that no
| effort had been made to secure any
| agreement on legislation.
| For Election of Board.
| Senator Cummins of Iowa is considering
| offering an amendment to the currency
| bill which will provide for the election
| by Congress, or by the people, of the
| members of the federal reserve board.
He intends that the election shall take
| into consideration the selection Of men
| according to geographical divisions of the
| country, and that not all of the members
| of the board shall be elected at the same
time or for the same terms.
| Senator Owen, chairman Of the bank
| ing and currency committee of the Sen
| ate, introduced the administration cur
rency bill into the Senate this afternoon.