New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-20
Their Membership Eliminated
to Meet the Fear of the Sec
retary of State That Wall
Street Would Get Con-
troll of Finances.
TERMS OF PROPOSED LAW
First Authoritative Statement of It's
Provisions as They Will Be Pre-
sented to Congress with Presi-
dent Wilson S Indorse-
nent Next Week.
from The Tribune Bureau.l ]

from The Tribune Bureau.l
Washington, June l9.--The admin
istration's currency reform bill. per-
fected after many conferences between
the President and his advisers. and re-
vealing in one salient feature the
handiwork of the Secretary of state
was made public here tonight by
Chairman Glass Of the House Commit
tee on Banking and Currency
Mr. Glass plans to introduce the bill
in the House tomorrow. President
Wilson will read his currency message
before a joint session Of the Senate and
House at / o'clock on Monday after
noon, and tomorrow night the Presi-
dent will confer at the White House
with all the Democratic members OF
the House Banking and Currency Com
mittee.
Standing high above the other feat
ures of the currency bin are the fol-
lowing fundamental provisions:
The federal reserve board. which will
control the issuance Of new currency
upon application of the regional reserve
banks, is to be a government board en-
trely. The banks Will have no repre-
sentation thereon, and thus was met
the strong objection Of William Jen-
nings Bryan to the earlier pia. which
he insisted might lead TO bank dom
ination of the note issuing board.
There. is to be no retirement Of
existing national bank circulation, nor
Of the existing per cent United
States bonds used for circulation pur-
poses. This vital change was written
into the bill to-day, following the
White House conferences Of Tuesday
and Wednesday. The lack Of retire
ment provision is a matter of some-
what general disappointment
Emergency Currency Provided.
Every national bank is allowed to
continue its note issue exactly as at
present, and there is authorized in
addition, under restrictions named in
the bill, the issuance of $500, 100000 Of
emergency currency on prime short
term commercial paper and other Ii
quid collateral.
This emergency issue, to be made
TO the federal reserve banks, is also
secured by 33 l-3 gold reserve and
first and paramount lien on all the
assets Of the federal reserve bank.
There was eliminated from the meas
ure to-day the provisions contained in
the earlier bill for the calling in Of the
2 per cent bonds. Prior TO the recent
conferences al the White House, it was
planned 10 authorize the gradual con-
version of these bonds into 3 per cent
bonds, on the theory that the . per
cent bonds were sold TO banks as
basis for circulation. and premium on
conversion must be allowed because
the government is morally bound to
continue their value TO a corresponding
degree" Senator owen was the chief
opponent Of this provision.
II is understood tonight that Chair
man Glass is not satisfied with this Sec
ton OF the bill as II is now written, and
that he has informed his friends that
the 10000, 900 emergency issue of cur
rency is hardly more than a retention
of the chief provision of the Aldrich-
Vreeland currency bill. which expires
next July.
Senator owen is declared 10 have
been insistent that the existing bank
note circulation should be, retained,
and that there should be no conver-
sion of the per cent bonds, and 1t was
feared that ne would deviate from the
Glass bill 10 this extent when intro
ducirg his bill in the Senate.
Bryan's influence Predominant.
Perhaps overtopping these perfected
provisions of the administration bill is
the importance Of the section relating
10 the organization Of the Federal Re-
serve Board, which will exercise tho
money ey-issuing functions of the govern
ment IL the Glass bill is enacted. In
the rewriting of this section, the infiu-
ence of Secretary Bryan has predomi-
mated and he is now believed TO I've
satisfied that the board. as 1t may be
constituted. will not partake of .he
nature Of the Aldrich central reserve
bank.
The Tribune dispatches first told of
Mr.. Bryans interference with the prog
ress Of the Glass-Owen bill and his
demand for change in this section.
The Secretary of State. in line win
the platforms on which he ran FOR
President. objected to the original plan
for delegating the money making power