Albuquerque morning journal., 1913-12-22

its own provision that the subseiip
don must equal per cent ot the
member banks capital
THE senate gave way on its proc
Vision ihlt 'no class B' director Of
regional bank could Dee slockholder
IN amy member bank This would
lermlt the three directors who repre-
sent agricultural Commercial or
industrial" Interests m the directorate
oft euch regional reserve bank to own
stock iu local banks in their district
The attempt of the house con
ferees to have the secretary Of agri-
culture and tho comptroller Of the
currency made momners of the or
gaul1atlon committee To inauruatr
The new system and permanent mem-
hers of the federal reserve hoarh'
held the attention OF the conference
through much of the afternoon. Th'
house bin included these federal Of
nclals as members of the board
while the senate allowed only the
secretary Of tho treasury 10 remain
ON the board.
Should the conference report b'
rcndy tomorrow, IL viii De gwen the
right of way In both the senate and
house. and adjournment VIII follow
as soon as the president signs the
bill Members OF both houses are
preparing to leave Washington for
the holidays even before President
Wilson writes his approval Of the
new currency law.
After "a lengthy argument the house
conference agreed to accept the re-
serve section written into the hill by
.he senate. Under the house hill %
reserve of S3is per cent of gold was
required behind the federal reserve
notes which viii constitute the new
currency. The senate provision agreed
to i'm conference provides for "a 40
per cent gold reserve, with a tax OF 1
per cent on depreciation down to 80 ia
per cent ana a graduated tax below
that point
The senate rccedcd from an amend
mcnt which would have admitted 70
discount by the regional banks ac-
ccptances based upon domestic ship
ments OF merchandise. The house
conference yielded TO a senate amend
ment which will allow the secretary
of the treasury discretion in the dis
posing OF government funds in the
new federal banks A compromise
was arranged as 10 TIE forcing OF one
regional bank to rediseount the paper
of another. by which the vote Of five
members OF the reserve board will be
necessary to require such discounts,
and the conference struck out a sen-
ate amendment, under which menu
ber banks could have discounted with
the regional banks their own direct
obligations.
The conference agreed TO retain q
senate amendment providing that no
memuCr 90 congress shall gcccpt amy
division OF profit I'm the new system.
The amendment providing that the
secretary of the treasury, the assis-
Itant secretary Of the treasury and the
comptroller Of the currency should
be Ineligible for two years after leay-
ing the government service for any
position i'm a member bank also was
accepted.
The house conference finally sue
coeded in securing AN agreement to e
provision that the new system should
bc instituted by an organization COM
ndttee and that the secretary Of agri-
culture and the comptroller of the
currency should be members of that
committee. The composition Of the
federal reserve board was still in dis
rutc, but the house conferees expect
ed TO be able to retain these two Off
cials among its members A senate
provision allowing national banks to
act ms trustees and executors Of es-
tates was agreed to. and several minor
changes were made in the nature of
compromises.
1t was midnight when the commit
tee settled down with the composition
of the federal reserve board. the pro-
vision for the use Of federal reserve c
notes as reserves in member banks.
the bond refundng section and the
guarantee Of bank deposits provisions
still in dispute The printing clerk of
the senate was kept busy dashing
backward and forward In an automo-
bile between the capitol and the gov
crnment printing office whore "a big
force Of printers was awaiting the fl
nal draft of the bin and the confer
ence report. II was apparent that the
committee was determined to thresh
out al Of the differences before adj
iournment for the night.