The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1913-06-21
DEMOCRATIC LEADERS GETTING
MEASURE READY FOR
INTRODUCTION.
TO CHECK RESERVE BANKS
Underlying Idea Is to Effect An Easy
Change From the Present BANKING
System BY Using the Existing Ma
chinery.

Washington. June 20-Coneress
turned its eyes away from the tariff
today and scrutinzed the administra.
ion's currency bill.
'While the measure will not be in.
troduced III both houses until next
week, the tentative draft brou
ABOUT informal discussion generally
by which President Wilson and the
Democratic leaders hoped to develop
complete harmony when the bin is
launched.
While 1t has been known for some
time that trainers of the measure
Secretary McAdoo. Senator Owen
Representative Glass and the presi.
dent contemplated system of ~
regional reserve banks in districts
whose areas We're not necessarily
equal geographically, but followed the
ines OF trade and domestic commerce
interest centered today in the now
ers CT supervision to be exercised
Dy the federal eserve board of nine
members over the reserve banks.
Though originally it was planned
TO give the banks representation on
the FEDERAL reserve board it was ar.
sued that the banks practically would
nave the entire management OF the
FEDERAL reserve banks and that by
placing the board entirely in govern.
mental control, check on the oper
ations OF the reserve banks might be
assured
Want Easy Change.
The underlying idea OF the bill in
the minds of the trainers has been
to effect an easy and nnembarrassing
change from the present banking
system by using existing machinery
The bill Is expected to be the sub.
1ect OF liberal amendment Proyi.
sion for retirement Of 2 per cent
bonds by which $7OO, 100000 of nation
al bank notes now are secured, so
as to provide against depreciation.
VIII be one OF the foremost problems
The provision for note issue. the
administration hopes, will not be
changed. 1t Is said to be the result
OF a careful canvass not only of
prominent bankers, but business men,
VINO thought it practical and sound.
Operation of the plan Is explained
In this way:
whenever a state or national bank
desires to obtain currency, it applies
iirst to the federal reserve bank In
lis region, accompanying with its ap.
pl.cation tender of collateral secu.
rity The security thus offered must
be notes and bills accepted for re-
discount under rules laid down by
the federal reserve board, which may
issue up to $50o,000,0O0 in notes
The federal reserve banks must hold
33 1-3 per cent In gold OF the amount
OF notes advanced. The notes also
become first and paramount lien on
all the assets Of the federal reserve
banks.
Attention was centered TODAY In
the re-discounting feature as one OF
the fundamentals on which the entire
plan Is based. The power of the re-
gional reserve bank Is specifically
broadened to discount notes and bills
OF exchange arising out Of CONNER.
cial transactions. It Is this power
which, in times OF stress, administra-
tion officials think, will alleviate mon
ey strain.
While the federal reserve board,
through its agent In the federal re-
serve bank, would have the right to
determine and define the character
OF the paper eligible for discount,
that definition will not include notes
or bills drawn for the purpose OF car
rylng or trading in stocks and bonds
or other investment securities, ex.
cept notes and bills having maturity
OF not exceeding four months and se-
cured by United States, state. county
or municipal bonds.
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Etno-