The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-11-22
WORK ON CURRENCY BILL.
EffORrS DIRECTED TOWARD
PREVENTING FINANCIAL.
Fe STRINGENCY.
both Wings OF Currency Committee
Devote Themselves to- Plans for
Transition Period Administration
Men Restore Lawful Money" Sec
ton.

protecting the country against any
possible financial stringency when the
proposed new currency system goes
into effsct was considered today by
both The Democratic and Repubn an
wings OF the senate banking and cur
rency committee.
In each case amendments to the ad-
ministration currency bill agreed upon
were designed to cover the "transi-
tion period" while banks are trans
fering their reserve TO the proposed
new federal reserve banks. The DEM
ocrats adopted a change that would
permit local banks to deposit half the
required reserve in the regional bank
I'm the form Of commercial paper in.
stead OF requiring the entire deposit
To he In cash. Another amendment
would authorize the federal reserve
board TO make the new treasury notes
and the present bank notes eligible
for use as part Of the reserves To re-
lieve embarrassment during the tran
sition period.
The Repu blicans and Senator Hitch
cock. contir uing work on their draft
OF the bill. adopted more radical
change by providing that banks need
deposit only per cent reserve
when the new system becomes effec-
tive. Tn additional 1 per cent to be
deposited each six months until the
entire reserve OF per cent has been
provided for.
The work of the two branches Of
the committee was not concluded to-
day and will be resumed tomorrow
The Republican members sent their
draft to the government printing Of
flee tonight, but will revise 1t tomor-
row. The Democratic caucus to con-
slider the administ ration bill probably
will not be decided upon until after
the steering committee" which met
today. has had another conference.
President Wilson let Democratic
senators know In positive terms to-
lay that he was opposed TO the move
lnent now under way TO secure an ad-
.ournment OF congress for the week
prior to the opening OF the regular
December session. He told several
senators that the country would
charge congress with adjourning for
the purpose of securing the mileage
allowance. While adjournment talk
continued today. 1t was believed to-
night the special session would run
through the merge into the regular
session. December 1.
Changes in the currency bill made
by the Democratic wing Of the COM
mittee today were the result OF ag-
ures presented by Chairman owen,
showing that the shifting OF the re-
serves In the bill as originally drawn
would have taxed the reserve money
OF the country.
The administration wing once more
reinstated the lawful money clause"
The clause provides that new currency
shall be payable In gold at the treas
ury in Washington but shall be pay
able In gold or lawful money" at
each regonial bank. In this connec-
tion the committee strengthened the
gold redemption fund requirements.
The legal tender" quality of the
new notes provided for i'm the bill. af-
ter lengthy discussion and n rather
heated struggle. was stricken out
again today. The representation of
the banks In the dlrectorates OF the
r.gloral reserve banks was altered to
allow directors elected by the member
banks To be directors or officers os
other financial institutions
Farm loans as lnvestments for ma
tlonal banks would be authorized in
an amendment written into the Re-
publican draft. Senator Hitchcock
ana the minority members amended
the bill to provide that national bank
may invest one-third Of their time de-
posits In fvc-yeor farm mortgages
based on 80 per cent of the value of
the land mortgagcd. The Republicans
struck out OF he house bill the re-
quirement thai national banks must
Scgregate the capital ana assets be-
hind all funds hold AS savings ac.
counts. The bank examination sec
uon OF the bill was revised, the com
mittee providing that bank examiners
Sh"h he placed on "a salary of from
$4,000 TO $1,000 a year. thus eitnlnat-
ins a fee system.