The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-11-21
Three Distinct Bills Will Be
Introduced i'm the Senate
Tomorrow
COMMITTEE UNABLE
TO REACH AGREEMENT


tional Banks Must Hold Against De
posits Gold Reserve in Regional |
Banks
WASHINGTON. Nov 21-Final
preparations have been made for the
battle over the administration currency
reform bill on the floor of the Senate,
which will begin Saturday. Three sep
arate and distinct currency bills, all
based upon the same general theory,
win be laid before the Senate by the
divided banking and currency commit
tee
Unable to agree on amendments, the
committee Will present the Glass-Owen
bill, a. originally indorsed by the adj
mnistration ana passed by the House
| The measure, with amendments asSum-
ed to be acceptable to the President
/ viii be submitted by Chairman Owen
and five other Democrats of the com
mittee. Senators Pomerene, Hollis, Reed,
| . German and Shafroth.
\ bill materially changing the
structure of the House measure viii be
| presented by the Republicans. Senators
Nelson, Weeks, Bristow, Mclean and
| Crawford, and one by Senator Hitch
cock.
All three of the proposed bills con
template the issuance of currency Sc
cured by the prime commercial paper
held by the banks of the country Each
proposes the establishment Of reserve
banks. which will issue the currency in
exchange for commercial paper to the
banks which viii hold the reserves be-
hind their deposits, mobilized for use
in any emergency. and which will re-
discount the paper held by banks in
the system, thus keeping available al
WAYS ample credit and currency for use
to ward off financial crises Each bill
proposes to put the entire system under
the control OF a federal reserve board
to be appointed by the President.
Although agreeing rs to the purposes
to ba accomplished by the proposed
Legislation, the three plans differ in al
most every point in attempting to
carry out these purposes. As It passed
the House the Glass-Owen bill proposed
! the creation of - regional banks. The
Democrats of the Senate Committee cut
, that down TO eight, the minimum mum
, Der the President was willing to accept.
The Republicans reduced the number
to four, holding that the smaller mum
the reserves of the country.
The u regional banks proposed by
the House bill would be owned by the
banks, through compulsory subscription
to the stock, and the banks would
elect six of the nine directors of each
regional institution.
This plan was retained by the Demo
: Gratis of the Senate committee, al
: though it was further provided that il
the banks did not furnish enough cap
ital to run the system the stock might
be sold to the public.
> Senator Hitchcock S and the Repub
= icans plan provides that the reserv,
= banks. capital should be subscribed by
= the public, the banks taking whateve
: part the public would not not take an,
;, that the government, through the fed
= eral reserve board should appoint fv
of the nine directors of each regiona
bank. This was the proposition whic
split the Senate committee into tw
camps.
Each of the bills materially reduce
:. the present reserve which nationa
y banks must hold against deposits. Th
House bill would fix the reserve at /
- per cent for country banks and Is pc
cent for banks in present reserve cite
I
!, ministration forces in the Senate con
io mittee, but the Republican wing cl
down the reserves OF the city banks
- per cent.
In the House bill the paper mad
eligible for rediscount and as a bas
for currency is commercial paper, base
a. on actual merchandising transaction
maturing in not less than 90 DAYS. TIL
provision was retained by the Dem
Gratis in the Senate committee, but Il
o Republicans broadened it materially.
~ Under their bill a part of the mel
~ = Der banks rediscounts may be made
paper maturing up to six months. II
~ - provision gives the advantage to ban
= with small capital, which have 5
called short time paper.
Under the House bill and the dra
Il. by the Senate committee Democra-
the regional bank directors would ha
discretion as to rediscounting for me
Of ber banks without limit.
,io In the Republican bill each memb
yas bank is given the right to secure
,ov discounts up to the full amount of
capital and, under a tax, to twice til
n;o amount.
+Lo The gold reserve to be held by t
~ regional banks in their vaults and
~ the treasury against the new circu
- tion is fixed at 33 1-3 per cent in be
ION the House bill and the measure dra1
ew bv the Senate committe Democra
lily The Republican draft, however, p
will vides for 30 per cent reserve with
Dur tax on reserves below that figure do
to a minimum of % per cent.