The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-05-20
Way SUBMIT
CURRENCY BILL
ABOUT JUNE |
PRESENT INTENTION OF PREsI-
DENT WILSON AND DEMO-
CRATIC LEADERS is THAT THE
MEASURE IN ALL PROBABILITY
WILL GO TO THE HOUSE VERY
SHORTLY.
BY WINFIELD JONES.

Washington, May Is.-The demo-
ratio currency reform bill in ali prob
ability Will be presented to the house
about June 1st. This is the intention
IL President Wilson and the democratic
eaders.
There are three bills now being pre-
pared and one which already has been
Introduced and which will be given
:aIefui consideration. Representative
Carter Glass of Virginia, prospective
ornmittee, is preparing ono measure.
Senator Owen, of Oklahoma, chairman
IF the senate banking and currency
committee, is preparing second. A
PROFESSOR of political economy some
where is preparing a third. Senator
Hitchcock of Nebraska, already has in
reduced a comprehensive measure.
from what President Wilson has said
4 can he taken for granted that all
hree measures will embrace the orig
lnal reserve plan for breaking of bank
ing monopoly and the concentration of
currency in one section of the country.
Three of the primal objects to be
accomplished by the currency reform
oilIs are the breaking UP of monop-
niistic banking, that is the drawing of
the wealth of the country to central
t,oints for promotion and speculation;
two, adding an elasticity to currency
end thereby liquidizing assets to some
.xtent; three, taking the control of
credit and the setting of interest rates
from the hands of purely speculative
Ranking interests and insuring to mer-
camille interests a larger influence In
this respect.
Indications are that Secretary Nc
Adoo not only is in accord with the
general plan provided in all the meas
,ires, but that he is working with Sen
Htor Owen and Representative Glass in
The framing of their measures. Sem
ator Owen said yesterday that confer
enceS with the secretary indicated
nat there would be no substantial diff
:erences between himself and the sec
rotary.
The regional reserve associations, in
number between fifteen and twenty
Eve. are to be located in different
PARTS of the country. The attempt will
he made to prevent them by law from
shifting more than a small percentage
~ their total deposits from their own
territory. The reserve associations will
Ia organized by subscriptions from
nm nks in their own localities, each bank
which desires to join after having been
passed upon by the treasury depart
:nent being required to subscribe a
specified percentage of its capital stock
Each association will serve as a house
'.f discount for banks in it's locality,
thus making it possible for bank to
realize on its short time commercial
paper without losing public confidence
Inc reserve associations Will be en-
powered to issue paper money, based
ON certain high-class securities de-
posted in the treasury. 1t is prob
able these associations will be made
government depositaries, and will have
the exclusive privilege of borrowing
from the treasury at low rate of in
terest. They will be permitted to is
sue paper currency on national, state,
county and municipal bonds based on
the face value of these securities, and
on good. two-name commercial paper
nn an eight per cent valuation.
There probably will be low rate of
about per cent upon issues not great
IT than 100 per cent of the capital and
surplus of the association, with an au-
ihorization to borrow more from the
treasury up to a certain point at
hIxher rate of interest.
The reserve associations will be con-
rolled by the member banks. The
Hitchcock plan is to. elect board of
zine directors for each association. In
the election of six of these directors,
each member bank would have one
vote. regardless of the amount of stock
III the association owned by each bank.
Tor the other three directors, each