Albuquerque morning journal., 1913-11-15
Republicans, Joined by Hitch
cock However viii Require
Several Days More TO Pre-
pare Their Substitute,
EIGHT REGIONAL BANKS
PROVIDED IN BILL
F Federal Reserve Board Is 10 Be
Composed Of Secretary of
Treasury and Six Members
Appointed by President,

tuY sosslsa iouRrsl srteiAl lsasso WISE
Washington. Nov la.--rhc admin
istraton currency reform bin, as IL
probably will go 10 the senate with
the approval of President Wilson. was
completed tonight hy six democrats
of the senate banking and currency
committee. Senator Hitchcock and the
five republican members Of the COM
mlttee continued TO write into their
drafts of the measure amendments of
which the White House has disap-
proved. Arrangements probably win
bo made tomorrow 60 send both bills
o. the senate for consideration some
time next week
As completed hy the democrats.
the measure provides for a system Of
eight regional banks. 10 be capitalized
by enforced subscriptions from the
national banks Of the country, with
unlimited powers OF rediseount and
Icurrency issue and the power to hold
reserves. the entire system TO be
under the control Of a federal re-
serve board.
In todays session. the democrats,
i Chairman owen. and Senators Pom
creme, Hollis, Reed, O'Gorman and
shafroth made minor amendments
in the bill They cut down the fed
erh reserve board from nine. as
fixed by former vote Of the com-
mltteo. To seven. as originally fixed in
'the house bin The secretary OF the
Treasury and six members 20 be ap-
pointed by the president, with re-
gard TO the financial. commercial
and geographical divisions Of the
country" would compose the board.
Each member would hold office for
six years. one term expiring each
year. and would receive $4,000
year salary,
Into the deliberations Of both
/ branches of the committee today the
question of the guarantee OF bank
deposits was injected II was re-
ported that the democrats had
adopted an amendment proposed In
/ the senate by senator Williams. of
4 Mississippi providing for a tax Of I
per cent on deposits. TO form a guar
antee fund After the bill was com-
pleted, however The democrats de-
clared the matter had been set aside
and with other matters would be
considered in connection with bill
revising the banking laws to be
taken up at the next session Of con-
gress.
The republicans considered a
proposition advanced by senator
Pristow, providing that after the re-
gional banks had paid o per cent div
/ idends on their capital stock, and
/ had accumulated a 20 per cent SUR
plus. the remainder Of the earnings
should be equally divided between
/ the government and fund TO guar
antee deposits. Senator Bristow was
allowed time TO draft his proposal
into the earnings section of the bill.
The administration bin would pro-
vide that the banks snail pay per
cent dividends on their stocks, ac-
cumulate 20 per cent surplus and
that an the earnings above that fig
ure shall so to the government
The democrats eliminated from the
redemption section of the bill the
provision that the new currency
would be redeemable 10 lawful
money" as wen as gold The re-
demptlon was to be made on a flat
cold standard, but It was provided
that the new reserve notes might be
held IN the reserve Of member banks
on the samc terms as gold.
senator Hitchcock and the repub-
Icans holding that they We're the
only bona flde banking and currency
cnnmlssion organized today by
designating Senator Hitchcock, the
ranking democrat as chairman
They declared that the secret ses-
sions Of Chairman owen and his ad-
ministration senators were entirely
outside the activities of the commit
tce The matter probably will be
straightened out tomorrow, when
me administration forces plan to so
into the committee meeting and en-
deavor to arrange some program for
report
senator Hitchcock and the repub-
rcaps went after the bin in vigorous
fashion. They eliminated entirely q
nroyision allowing the appointment
of receivers for insolvent national
banks, holding that a receiver wouiu
only tie up the entire reserves of the
hanks. and that there was no pos
sthilitv of a regional bank falling.
rhe administration senators put m
provision that no receiver should pe
appointed, but that the federal re-
serve board should take possession
Of and administer the functions Of any
regional bank which might become
lnsolvent,"
The republicans rewrote the reds
count section to provide that any
member bank with eligible paper
might secure, as a matter Of right