Evening star., 1913-11-26
CURRENCY MEASURE
RULED BY CAUCUS
Democratic Program in Sen
ate Calls for Enactment
Before Christmas.
ORDER NIGHT SESSIONS,
NO RECESS IN HOLIDAYS
Determination of Leaders Is to Bind
Every Democrat to Sup
port the Bill.

voted to adopt a program of day and
night sessions to to use every possible
means to push the bill through the Sen
ate. There was not dissenting vote
in the caucus. No Christmas recesses will
be taken, except for Christmas day, un-
less the measure should be passed before
Christmas.
''The bill will be passed before the
Christmas holidays" was the emphatic
prediction of Senator O'Gorman Of New
York, as he left the conference chamber
this afternoon.
Two resolutions were adopted by the
caucus. One offered by Senator O'Gor-
man provided the program of meetings
of the Senate to pass the currency bill.
1t was as follows:
1t Is the sense of this conference that.
beginning December 1, the Senate shall
meet at 10 o'clock in the morning. shall
sit until o'clock in the evening: shall
recess until o'clock in the evening. and
shall sit from until IL O'Clock in the
evening. each day, until the currency bill
be voted upon, and that no Christmas
recess be taken except for Christmas
day, unless the currency bill be passed
prior thereto, the adjournment being
from December "a until December rs.
The second resolution adopted was as
follows:
THAT the democratic conference re-
convene Immediately after the adjourn
ment Of the Senate today, and continue
during the rest of this week unless the
consideration of the banking and cur
rency bill is sooner terminated.
Plan of the Leaders.
1t is the determination of the demo-
cratic leaders to have the conference
adopt currency bill, and to bind every
democratic member of the Senate to
a
this afternoon the caucus will begin
framing this BILL
The democratic senators believe that
the time has arrived when, as the party
in power they must take speedy and
definite action on the currency bill. init
nations have been received here that the
country is awaiting currency legislation
and. that failure to speedily give the re-
lease demanded may result in an en-
barrassing condition from "a ananciaf7
standpoint.
Senator, Hitchcock, democrat, who has
been the leading opponent of the admin
istration currency measure and who has
insisted upon deliberate action on the cur
rency measure, left Washington last
night to go to his home in Nebraska.
Senator Gallinger Has Doubts.
Il do not think the program adopted by
the democrats will work out" was the
comment of Senator Gallinger. republi-
can leader of the Senate, this afternoon.
Il do not think there is the slightest
possibility of the currency Dill being
passed before Christmas
Senator Gallinger said it had not yet
been decided whether republican con-
ference would be called. 1t Is considered
likely. however, that such course will
be taken.
The program decided upon by the demo-
Gratis is the most drastic yet ADOPTED III
connection with tine currency Dill, ana
shows the determination Of the demo-
cratic leaders in the Senate to stand by
the President and prevent INDEFINITE de-
LAYS on the bill in the next Congress,
which is to open Monday.
The President was not consulted ABOUT
the caucus program, but is said to be
highly gratified at the support he Is
getting from his party.
Offers New System.
A federal reserve system, differing
from any in the currency bills now pend
ing before the Senate. was advocated by
Senator Newlands of Nevada, who ad-
dressed the Senate soon after it met at
2 o'clock this afternoon. This system
was first presented by Senator Newlands
several years ago in opposition to the Aid
rich central bank plan.
While admitting the need for early ac-
ton on the currency question. and the
necessity for the democrats, the dominat-
ing party, to shape the legislation, Sena-
tor Newlands urged that his plan be
given consideration along with the others
He said that he thought any of the plans
suggested were superior to the existing
banking and currency system of the
country.
Senator Newlands plan, as described by
him this afternoon, embraces the follow
ing suggestions: First. the strengthening
of the individual banks of the country
national. second, the unionizing of all
banks within the boundaries of a state in
state reserve association: third. the
establishment of federal reserve asso-
citation at Washington, the members Of
which shall be the state reserve associa-
tions. The development Of Mr. Newlands'
plan is provided for in a resolution which
he has laid before the Senate. 1t Is as
follows:
Resolution Before the Senate.
THAT within five years the capital of
, every commercial bank. national and
state, engaged in interstate commerce
II per cent of its deposits and that ac-
ceptance of deposits beyond this proper
ton shall be forbidden except upon pro-
| portionate increase of capital.
THAT within five years the reserve of
such banks shall be required to be equal
/ to at least II per cent of the deposits,
except in reserve cities, where it shall
/ equal ID per cent
| That of such reserve held by country
banks, one-third may be deposited In re-
! serve city banks.
That of such reserve, one-third shall
be deposited IN the state reserve associa-
tions hereafter referred to.
| THAT there shall be organized In every
| state a state reserve association in which
/ the membership of all commercial banks
both national and state shall be compul-
| sorry as a condition of the continued ex-
Iistence of the national banks and of the
/ privilege of continuing In interstate com.
l meyce as to the state banks.
/ To Deposit Part of Cash Reserve.
THAT each member bank shall .deposi
4 and forever maintain in such state re
4 serve association at least one-third OF
it's cash reserve. Such state reserve as
sociation shall have powers of super
vision and regulation OF it's membel
banks, and also the power of rediscoun
of commercial paper, guaranteed by tn,
member bank. the reserve of such mem
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