Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1913-12-25
CHANGES MADE IN
NEW BANKING ACT

S.9+E 4NEStSg -sss
washington. Dec. 19.-Another modi-
ncatfon of the currency bill to permit
clearing house associations to continue
their present system OF bank examina-
tion and report has been agreed on.
Protests from clearing house ~associa-
tons In Los Angeles, Atlanta, Cincin.
natl, Columbus nj other cities, sayino
the usefulness Of the associations would
% destroyed under the restrictions %
the bill. caused the change.
The Senate debate continued today
with q limit Of IL minutes for each
senator.
Senator Hitchcock's ropos to in
crease the gold yer from S. to As
to 40.
Senator Bristow asked whether the
democratic managers had decided to
drop deposits guarantee. Senator
oven replied there was nothing in the
rurnor" that such q conclusion had
been reached; but he would not say
whether the provision was to be re-
tanned in the bill.
Another amendment by Senator
Hitchcock to increase from $s.0o0,000 to
30 100000 the capital required by each
regional reserve bank was tabled ~
to 20.
Majority Holds Fast.
With a limit on debate and thu
majority on hand to support the Owen
Dill, amendments were defeated with
rapidity. One, proposing six banks -
q compromise between the eight OF tho
Owen bill and the Jour Of the Hitch-i
COCK plan, went to the table by a vote
OF 4a to 80. Another Hitchcock amends
ment that forced a vote OF the direct
question OF whether the government ~
the banks should control the regional
banks was also tabled. Senators Root
ana Oliver. republicans, voted with the
democrats. Senator Lane, democrat.
Joined Hitchcock and the republicans
IN its support.
Senator H~itchcock'ss amendment
proposing public ownership OF the
stock of federal reserve banks also WA
tabled by a vote OF Al to 81.
Vote Down Amendments.
The Senate spent last night In COM
stderation OF further amendments pro-
posed by Senator Hitchcock, defeating
by II to 81 his amendments to extend
the guarantee OF bank deposits to cover
state banks that Joined the new svs-
tenn as we'll as national banks. SenR-
tor Owen expressed his approval Of this
idea, but the democrats would not sup
port 1t because 1t had not received the
Endorsement OF the caucus.
A motion by Senator Hitchcock to
increase from 90 to $50 days the ma
turity date OF paper that could be sub
mitted for rediscount at the regional
banks was also defeated, 80 to 81.
The democrats gathered In q hur-
riedly called conference to settle all
nal differences over the bill and agree
upon amendments which they would
support. The list OF amendments sub,
mitted to the caucus included many Of
those which had been proposed BY
and voted down. N 1t was said several.
of these might be offered by Senator
owen and adopted as part OF the bill.
Republican senator's Joined Senator
Hitchcock In q strong tight against tho
provision of h Owen bill limiting to
cial paper that might be r~ediscounted.
ct the proposed new regional reserve
banks.
Senators Crawford. OF South Dakota.
and McCumber. of North Dakota, de-
clared 1t would make It as impossible
meet an emergency n that six
months for farmers and stock raisers
would be valueless in time OF q panic
because they could not rediscount.
With this s0-day provision you are
declared Senator Crawford, "a bank to
help big banks, but for which you as
Eess the little banks SO as to get the
capital. The little banks are simply
commanded to carry wood n water
Luz tlc Dl8 UdIKH. |&3@ sg4yf5A as
"You say to the Vanderlips and tho
Hepburns and the Morgans and the,
Reynolds: Come In with your short
term paper and get the money but you
say to the Smiths and the Browns and
the Jones from h small country dis
tricts: Go somewhere else with your
long time farmers papers, we cannot
discount"
Senator Shaffroth replied that tho
limitation gains long term paper had
been settled upon solely to assure the
federal reserve banks having paper that
would be liquid" and quickly convert
tble into cash in time Of stress.
Following the numerous attacks ON
the note issue provisions and the re-
serve requirements OF the bill by those
who commended the measure would open
the doors to initiation, the Democratic
serve section. The required gold re-
serve behind the new circulating notes
was increased from IS per cent, az pro
vided in the Owen bill, to 40 per cent
with a tax Of / per cent IN depletion
of the reserve down to a2A per cent.
An attempt to fix IN arbitrary limit on
the amount Of notes to be issued failed.
Other amendments adopted provided
for the use OF a part Of the surplus
earnings Of the regional banks fol
building up the gold reserve, n for
IN increase In the compensation of the
Il ~ - go SAA0 Ss tAbMth Sb1SA " HoSEAIA
from $4,000 to $4,000. as provided In
the Hitchcock amendment. The pros
vision that all member banks must res.
ceive the proposed new notes at par
was approved.
The conference also decided to re-.
model section 5 Of the bill, providing
for the entrance of state banks and
trust companies into the new system,
and voted in favor of a provision
whereby regional banks would be res
quired to keep a fund intact In the
treasury to provide for the redemption
of outstanding notes. All OF these
changes, with several other minor
amendments. were referred to the DEM
ocrats OF the banking committee to be
framed in detail. The conference tooN
no action on the guarantee OF depositS
provision OF the bill.
BY a vote Of 3S to 81 the Senate res
jected an amendment proposed by Sen-
ator Hitchcock providing that regionas
hanks must extend to member banks
as a matter of right rediscounts upon
the amount Of the member banks cap
ltal stock at the prevailing discount
rate and up to twice the capital at In
creased rates.
Senator Norris voted with tho demo-
Gratis against the amendment. Under
the Owen bill the granting OF reserves
10 member banks would be entirely In
i - - --LN- - - 1914