Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-12-18

Senator Hitchcock and the five men,
bers Of the Senate banking commits
sion. With these out of the way Sena-
tor Owen will offer his bill endorsed
by the Senate Democratic caucus as
the substitute for the Glass bill that
passed the House.
Republican senator's Joined Senator
Hitchcock today in a strong fight
against the provision of the Owen bill
limiting to 30 days the maturity period
of commercial paper that might be re-
discounted at the proposed new region
al reserve banks.
Senators Crawford of South Dakota
and McCumber of North Dakota de-
clared it would make it impossible for
country banks of the West to meet
an emergency and that the mass of
six-months notes Of farmers and stock
raisers would be valueless in time of
panic because they could not be re-
discounted.
With this 90-days provision you are
simply creating a bank of big bank
ers,' declared Senator Crawford. "a
bank to help big banks, but for which
you assess the little banks to get the
capital. The little banks are simply
commanded to carry wood and water
for the big banks.
You say to the Vanderlips and the
Hepburns and the Morgans and the
Reynoldses Come in with your short
term paper and get the money but you
say to the Smiths and the Browns and
the Joneses from the small country
districts: Go somewhere else with
your long time farmers paper; we can
not discount it,
Senator Shafroth replied that the
limitation against long term paper
had been settled upon solely to as
sure the federal reserve banks having
paper that would be Liquid and Con-
yertible into cash in time of stress
Following the numerous attacks on the
note issue provision and the reserve re-
quirements of the bill by those who con-
tended the measure would open the doors
to imitation. the Democratic conference
tonight revised the reserve section The
required gold reserve behind the new
circulating notes was increased from S5
per cent. as provided in the Owen bill
to 40 per cent with tax of per cent.
on depletion of the reserve down to S2s
per cent. An attempt to fix an aroitra-
ry limit on the amount of notes to be is
sued failed.
Other amendments adopted provided
for the use of part OF the surplus
earnings of the regional banks for build
ing up the gold reserve; for an increase
In the compensation of the members OF
the federal reserve board from slo,oN TO
$4,000 as provided In the Hitchcoek
amendment. and that all the member
hanks must receive the proposed new
notes at par.
The conference also decided to remodel
saction eight of the bill providing for
the entrance of state banks and trust
cononan,es into the new system and vot-
al in favor of a provision whereby re-
stona, hanks would be required to keep
q fund intact in the treasury to proViae
for the redemption OF outstahuihs "o'ss
All these changes with severai o'iei I'M
nor amendments were referred 10 'ae
pemocrats of the banking committee 10
ha framed in detail The conference
took no action on the guarantee Oh ue
nosits provision of the Dill.
nv oo,ferenee considered but did not
-. eno,,v upon a point involved IN one
- Tho Hitchcock amendments deleateu
- .ha eoor of the Senate today. ms
would allow regional banks 10
count for member banks speeihee Pc.
centage of six months commercial pay
~ accommodate banks In the eo1i's's
districts of the Middle West
Under the Owen bill only paper n,a'ai-
,,y within 90 days would be ehgipie ioi
re-discount. .,e
Tba conference adjourned when the
canota met at o'clock but will resume
ae,s,aaration of amendments tomorrow
evening.
-,.IrphMTc CLOSE.