Valdez daily prospector., 1913-11-15
MADE CURRENCY BILL
Only Eight Regional Banks Are Now Proposed by the Democrats,
 Whereas Formerly Twelve.

WASHINGTON, Nov. 15.-The Democratic members of the Senate Committee on Banking and Currency have finally agreed upon bill, the outline of which Was decided upon at today's meeting of the members of the committee. Instead of the Glass Owen bill, which provides for twelve regional banks, and which is advo' cated by President Wilson as the administration bill, the senators will report bill with only eight regional banks, and it is said the compromise will have the approval of the admin istration.
 The Democrats have been great ly divided over the currenccy meas ure, Senators Reed. O'Gorman and Hitchcock all favoring a government owned central bank. which is the plan of the Republicans in the up per house, but Pl esiednt Wilson in- sists upon the sectional bank plan.
 Under the bill to be drawn by the Democratic majority of the commit tee the national banks in each reg ion must purchase the stock of the regional bank in that section and must pay the expense of operation. The subscriptions are to vary, ac' cording 10 the amount of capitaliza- tion and deposits.
 To prevent inequalities in the val ue of stock in the regional banks and also to hinder still greater inequali- ties in the amount of stock subscrib- ed in the various regions, it is pro- posed to have the subscription ap- portioned among all the regional re- serve banks, so that stockholder in New York would have pro rata shares in all the regional banks of the coun- try. But this plan would carefully avoid even the appearance of sin gle, central controlling and stock holding body, to which the various regional banks would be merely branches.
 "Government Money"
 The credit of the government will be behind the new notes. While many of the committee members be- lieve that the new notes should stand solely on the credit of the banks of issue, divorced from the governments support, it is realized that, with the banks of issue direct ly controlled by the government, the practical distinction would be slight. while the political value of such a concession to the "government mon ey" ideas of the Bryan followers would be great.
 The committee is leaning heavily to federal reserve board. made up of long-term appointees. There will be no ex officio members, with the possible exception of the Secretary of the Treasury, while the Secretary of Agriculture and the Controller of Currency are certain to be dropped from the list. Tho long tenure of office of the members of the Feder- al Reserve Board, it is hoped, will prevent control by the government from degenerating into political con- trol.
 The Republican senators will fight to force the establishment of gov ernment central bank controlled by the government, but with a minority of the directors ot the bank elected by the national banks, which are to be affiliated with the central bank. It is hoped by this means to have the reserve bank so strong that the re- lief needed during times of a money stringency can be mad at a moments notice by any of the national banks by calling upon the reserves in the government central bank and the de- posting of the collateral held by the individual banks, but upon which they cannot realize when money is tight
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