The Washington herald., 1913-11-15
TWO Committees
WORKING BILL
Democrats and Republicans
in Session on Glass Cur
rency Measure.
GOLD CLAUSE ADOPTED
Administration Faction Makes impor-
tant Changes-Federal Reserve
Board Membership Cut
GOLD CLAUSE ADOPTED

In the completed bill, which the six
Democratic members OF the Senate Bank
ing and Currency Committee VIII sub
init 10 the full committee today the
words lawful money Will have even
more restricted application than had been
given them two days ago wnen they
crept back into the currency bill.
Under the new application lawful
money may not be used for redemption
purposes, ana the latest draft Of the bill
provides that II may be used only as a
reserve against deposits and other La
bilities. The bill requires that this re-
serve must be kept in gold or lawful
money" The reserve against note issues
must be OF gold.
After the adjournment last night OF the
six Democratic members OF the commit
tee, who are supposed to adhere TO the
administration view, announcement was
made that they practically had completed
the work. and would lay 1t before the
full membership OF the committee this
morning.
Minority Report Slow.
The five Republican members. and
Senator Hitchcock. who are going for
ward with the work of preparing a
separate bill. say they will not be able
to complete their work before the middle
OF next week. They hope TO be ready TO
report not later than Thursday. They
organized yesterday by electing Senator
Hitchcock acting chairman, TO preside.
The Republicans and the Senator from
Nebraska proceeded as far yesterday as
section Is Of the bill. passing over tenn
porarily section Z. The language Of the
House bill is being rewritten and simplt-
fed as much as possible, even where
amendments in the substance are not be-
ing made.
The Democratic members yesterday
adopted an amendment cutting down the
membership of the Federal Reserve
Board TO seven. The Secretary of the
Treasury remained as a member ex officio.
A divergence Of opinion was developed
among the Democratic members as to
tenure of the members OF the Reserve
Board. But IT finally was agreed that
they should be appointed so that the term
of one member will expire each year.
Some OF the members had advocated
twelve-year term, allowing for a vacancy
every two years instead Of every year.
II was agreed that the salary OF the
members of the Reserve Board should be
$4,000 a year.
Senator O'Gorman succeeded in hav-
ing two amendments made to the pro-
vision of the bill authorizing the ap-
pointment OF members of the Federal
Reserve Board. One amendment elimi-
mated entirely the requirement that the
President shall not appoint more than
one member OF the Reserve Board from
a single regional reserve district. The
other amendment by Mr.. OGorman
changes the language of the House bill
wherein IL recommends that the Presi-
dent take into consideration the geo.
graphical divisions Of the country in
appointing members of the Federal Re-
serve Board, and as amended the re-
quirement is that he shall take into
consideration financial. commercial,
and geographical divisions OF the coun-
try"
The Democrats made a change in the
bill wherein It authorizes the appoint
ment of receivers to take charge Of the
affairs of insolvent regional banks,
should insolvency occur, so that the
Federal Reserve Board will have the
power to take possession of and ad-
minister the functions" of the regional
bank The purpose of this language is
TO make possible the reorganization of
insolvent regional banks.