The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-29
CURRENCY BILL IS
PASSED BY CAUCUS
Expected to Be Approved By
the House Without Any
Changes Soon.
(National News Association


WASHINGTON, August 29.-The ad-
ministration banking and currency bill
| has now withstood it's first legislative
| test 1t has come out of the caucus of
house Democrats in the form in which
| the administration forces would have
! it. Unquestionably it will go through
the house within the next three weeks
without change, as the caucus, after
approving the measure by vote of
| 163 to g. almost unanimously adopted
resolution making it a party meas
| ure
The nine Democrats who voted
against acceptance of the bill in eau
Gus were Representatives Henry,
| Eagle and Galloway of Texas; Hard
wick, of Georgia; Lobeck, of Nebras
| ka; Buchanan and Fowler, of Illinois;
| Neely, of Kansas, and Sisson, of Mis-
| sissippi. Most of them will support it
in the house and the prospect is that
| it will receive some Republican votes
and the votes of seven or eight Pro
gressives.
Quick Action Forseen.
| The measure was to be reintroduced
in the house today by Chairman Glass,
of the banking and currency commit
tee, and referred Immediately to that
committee, which will meet next Tues
day. 1t is expected the bill at once will
Mr.. Glass predicted would pass it
within few days.
There has not been written into the
bill from one end to the other" said
Chairman Glass, "a single sentence
except by the initiative of the banking
and currency committee itself, which
has altered in the remotest degree the
essential provisions of the bill as orig
| inally reported by the committee to
the caucus"
Time of Loans Extended.
Two amendments were agreed to
just before the caucus finally passed
on the measure. One had to do with
the reserve features of the bill and the
other relates to loans authorized by
country banks" on agricultural real
estate. The latter proposition excited
long discussion. AS the bill was pre-
sented to the caucus it provided for
nine months loans on farm lands. The
time of such loans was extended to
twelve months, in accordance with
representations made by savings
banks and other institutions that deal
in such property.
| The reserve section substituted yes
terday does not differ materially from
that first adopted except to make the
! provisions more clear. 1t proposes that
reserves in central reserve and re-
serve cities shall be 18 per cent. in
stead of 25 per cent, and II per cent
| instead of Is per cent in country
banks" as required by existing law.
Twelve Reserve Districts.
AS the bill now stands it divides the
country into twelve reserve districts
and provides for the establishment of
federal reserve bank in each dis
trict. The capital for these banks is
to be provided by national and state
banks desiring to become members
of a district association. Each bank
/ is required to subscribe 20 per cent.
of it's capital, 10 per cent. of which is
to be paid in. The management of
each reserve hank is to be lodged in
the hands of nine directors, six of
whom are to be elected by the capital
contributing banks, and three of which
are to be elected by the federal board
of control created by the bill.
The federal board is to be author
lied to issue treasury notes to the re-
serve banks, receiving in exchange ap-
proved securities. These notes will
be issued to the member banks on
commercial, industrial and agriculture
al paper, which the reserve banks are
authorized to discount for the member
banks. The discount rate is to be
fixed by the board of control, and may
not be uniform.
WASHINGTON, Aug. 29-After a
conference with President Wilson to-
day. Senator Owen announced that
the committee on Banking and Cur
rency would give a hearing to the
American Bankers association next
Tuesday afternoon. The bankers are
understood to be opposed to the
GlaSS-OweO hill