The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-07-30


surgent amendments would begin by
reforming the proposed federal re-
serve board. They would authorize a
board of nine members, including the
secretary of the treasury and secre-
tary OF agriculture. and the comptrol-
ler OF the treasury and six members
appointed by the president. OF these,
one would be a person experienced in
banking and general business" one
a bona fide representative of indus
trial labor" and one bona fide rep
resentative of agriculture"
Except for the banking member OF
the board. all would be forbidden to
hold stock in any bank. trust COM
pany. or concern, "the security or
paper Of which may be handled by
any of the banks named under this
law"
Another section would provide that
ex-presidents of the United States
should be deemed ex-oficio members
of the board.
The amendments would increase
the maturity term of paper rediscoun-
table In the federal reserve banks
from SO days. as at present proposed
by the Glass bill, to 12O days, and
would include in the rediscountable
nrto
amendments would continue the Glass
bill provision for a reserve of 33 1-3
pr cent of the banks total liabilities.
They would provide that not more
than SO per cent OF the paper re-
discounted to depositing bank
should have a maturity Of more than
so days.
The amendments would provide for
an issue of United States notes Of
not to exceed 100000. 900" and "in
addition thereto a sum equal to the
difference between the total amount
of national bank notes outstanding at
any one given moment and the
amount of such notes outstanding at
the passage of this act"
These notes would be redeemed I'm
gold at the treasury or at any federal
reserve bank.
The all-important feature of the
amendment would provide for the
division OF this new currency into
three sparate groups for three in
dividual purposes-$3OO. 900, 900 of
Commercial" currency of
the United States; 100000 900. of "in-
dustrial' currency and $500, 900, 900 of
agricultural currency"
The commercial currency would be
issued to the reserve banks and the
industrial currency through the re-
serve banks to the States and terri
tories upon legally authorized State
or territorial bonds and county and
municipal bonds when legally execut-
ed and indorsed by the State or terri
tory"
The agricultural currency would be
issued through the reserve banks to
farmers upon warehouse or storage
certificates. certifying the deposit of
cotton, corn or wheat in bonded, in
sured and solvent warehouses or sto-
rage plants to be approved by the fed
eral reserve board
The industrial currency would be
issued for use In internal improve
ments and such amounts as are taken
by States and territories must be re-
paid i'm 20 years.
The amendments propose an elab.
crate scheme for the issue of the az
ricultural currency. They would pro-
vide for the issue of currency To SO
per cent of the market value of ware
house receipts for cotton, when the
market price Is under Is cents; for
corn when the price is below 60 cents
bushel. and for wheat when the
price Is less than 81 bushel.
There also Is a provision author
Hihs DanKS not located in reserve or
central cities to make loans on "im
proved and unencumbered farm
lands" not to exceed so per cent of
the lands value.
The much discussed provision for
the refunding OF the 2 per cent
bonds, which secure the present cur
rency by the issue OF per cent notes
without the circulation prohibition.
which was included In the Glass bill.
would be eliminated by the "insur-
gent" amendments.
In his determination to get the cur
rency bill through at this session the
president has decided TO forego his
vacation and remain in WASHINGTON
continuously until the measure is
passed. Suggestions that the senate
might adjourn after the tariff was