The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-20
Currency Committee
May Report Itself
Evenly Divided.
DRAFT COMPLETED
BY EACH FACTION
Republicans Suggest That Pro-
posed Changes Be Filed as
Amendments to House Meas
ure-Sections for Refund
ing Of Q Per Cent Bonds
Are Agreed Upon.

Washing ton. November l9-With
two widely divergent drafts Of tho ad
ministration currency bill practically.
completed. program for the consid :
Grafton OF the currency legislation In
the Senate will be arranged by Senat .
leaders tomorrow. Tho Democrats Of
the Banking and Currency Commit s.
tee and the Republicans and Senator
Hitchcock were about through tonight
With the framing OF their respectiye
drafts.
meeting OF tho fun committee will
oe heiu tomorrow morning TO decide
on what form tho report to tho Sanate
will take. The suggestion of tho Re-
pupBcans that the committee renor,
itself evenly divided and unable "a
agree, and file the tao proposed bills as
amendments TO The House bin may no
auopted \ meeting Of the senate
Steering Committee will take nm Tho
currency situation before the Senate
meets tomorrow. and also viii con
siher The possibility Of an adjournmen.
OF congress. although leaders have
parctlcelly abandoned that idea.
bo'h ract!ons Of the Senate Commit
tee on Currency to-day agreed unon
the sections for the rcfundin- Of the
: per cent bonds. upon which the ma
uonal bank circulation Is based Under
IN" Democratic plan the reserve banl,
VIII DC required TO take up an avera g .
or $4,000 4 year OF the os and o.
change them for per cents
To Maintain Gold Reserve
this new issue is to be used In main
talnins the gold reserve and would
be sold whenever the emergency re-
quired II TO replentsh the stock OF gold
nero by the reserve banks These
bonds arc 10 run for twenty years
Federal reserve notes may he issued
upon the gold purchased through tho
sale Of these bonds. The government
cannot dispose Of any OF its obligations
below par The proposed bonds could
be sold BY tile reserve banks in the
open market and without such rcstric-
tions. This is the suggestion of Paul
Warburr, of New York one or tho
best known financial experts OF ,lIo
country.
Under the Republican plan. tn, re-
serve bank is required to take over n
certain amount OF per cent bonds a
year and issue per cent gold treas
ury note. running one wear These
notes would be held IN the reserve
banks cXccph when conditions called
for the purchase OF gold. They would
nave none Of the characteristics of
bonds issued b. The government -
deemable in gold. and would NOT. Re-
puolicahS say. drain the gold out or
the treasury when presented for re-
demption
\ number ~ students or finance. in
Guiding Sir George Paish. OF England.
objected To this plan on the theory that
tie redemption of these gold notes
would draw that metal from the re-
serve banks
TaN on Note Issues.
The only other change OF any i'm
portancc made to- day By the Demo
cratic section OF tie committee was a
Il .f.,s, 3,
board from time To time 10 impose Il
tax on note issues This would be done
Tor the purpose Of arrcstinc any ten
dency 10 imitation OF the currency
The Republicans TO-DAY increas cd
the reserve requirements against de-
posits in reserve banks from the pro-
posed a3 Ia per cent to 30 per cent
Authority is given the Federal board.
in case OF an emergency. 10 permit the
reserve banks 10 run below this amount
under penalty tax of per cent for
each u per cent below - per cent
but III no event is tn" reserve 10 he
diminished below ~ per cent
The reserves against deposits in
member banks. as finally agreed uron
by tho Republicans. makes the reserves
for country banks Il per cent and for
central city and reserve city banks IL
per cent. III country banks per cent
must be retained ia their own vaults
N4'N - 'i'S i'S'o!isti tcSciN W btiih
ana per cent at the option OF the
member bank, either in their own or
the vaults OF the reserve bank. Central
ami reserve city banks must retain :
per cent in their own and q per cent in
the vaults OF the reserve bank and !.
per cent optional. In each case the
amount 10 be deposited with the re-
Sional reserve bank must be paid in
at the rate of per cent upon notice
OF the organization OF the reserve bank
and per cent every six months there
Continued on 'renth Page)