The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-08-02
Leaders. However, Think
Bill Will Pass Caucus
on August II.
INSURGENTS ARE ROUTED
Every One Of Their Hobbies
Turned Down. and Admins
tration Ia Elated.

w.su,SGroS Aug. by vote OF .
"a & the Democrats OF the House Com
r,,,,e, IN Banking and Currency rejected
to-day the proposed Pujo committee
,,mendmcnt to the Administration banking
bu prohibiting a member Of the board OF
national bank from serving In a like
ca,act,y on the board OF any other finan.
clal institution. The vote on this propo-
siton and others taken In the course OF
the day show that the Administration
Acrces control the committee by Q safe
majority
Work on the Administration bill was
concluded In committee to-day. The bill
viii come up for discussion in Demo-
cratic caucus to be held on August II.
Administration leaders are TN happy
frame Of mind over the outcome. a week
ago the committee appeared to be hope
lessly divided. and fear was expressed
that the Administration might be forced
20 abandon the plan to put through a
banking reform bill at this time.
While no vote was taken on the bill as a
whole in committee to-day. noses have
been counted and the Administration 10
confident of eleven OF the fourteen COM
~
will put up a lively fght In caucus. but
Leader Underwood has given assurances
that the bill will emerge unchanged.
Lose All Along the Lias.
The insurgents lost all along the line.
Every one Of their hobbies was kicked
out Of the committee room door. Tie
Ragsdale. Henry amendments. which pro-
yided among other things that currency
should be issued on cotton. corn and
wheat held in warehouses we're dropped
without even division being called for.
II was plain that majority opposed
these radical suggestions.
Although beaten. the insurgents have
no, given up the fght. In addition to
the report to be made In behalf Of the
majority, reports will be submitted by
them to the caucus.
The Administration IL SO pleased with
The banking and currency situation D,
the House that II already 10 taking steps
TO prepare the way for the bill In the
Senate. Senator Owen Of Oklahoma.
chairman Of the Senate Banking and
Currency Committee. has announced that
In his opinion the upper house will pass
the Administration bill.
number OF important changes In the
Administration bill made in the last week
We're given out tonight. Nearly all
bankers who expressed themselves on the
subject and many members Of Congress
made objection TO subsection b Of Sec
tion ~, which authorized the Federal re-
serve board to require or permit . Fed
.ral reserve bank to rediscount the paper
Of any other Federal reserve ban This
tr,,, -. - :,
that IL gave large powers that would
prove unfair in operation to many banks
and sections Of the country.
snb-Section Rewritten.
Yielding TO the objections the COM
mittee rrwrote sub-sectiOn Il, ~ fol-
lows:
That the Federal reserve board may
permit, or in time OF trouble require. Fed.
eraI reserve banks to rediscount the dis.
counted prime paper Of other Federal
reserve banks, all members Of the boa I'd
beih. present wheL such action 10 taker
ana consentng 10 the requirement. The
exercise OF this rediscount power by the
Federnl reserve board shall be subject
10 an interest charge TO the accommodate
oahk Of not less than l. nor greater than
3 per cent. above the higher Of the rates
prevailing in the districts Immediately
affected"
section ~, relating to reserves also wal
amended. An the bill was reported II
required all banks IN reserve cities e
MAINTAIN for period Of twenty-siz
months reserve Of 25 per cent. OF
.her outstanding deposits. The amend
meht adopted releases the reserves OF
.hese banks at the end Of sixty days
the erect OF this change IL to give these
o""hs immediate cash reserves with which
10 make subscriptions to capital stock ir
'he new Federal reserve banks.
section Of the bill. providing for tht
eSposal OF the earnings Of Federal rs'
eAfVs banks, was changed In importan,
pA"eulars This section az intro
duced provided that the shareholder,
snou'd receive an annual dividend Of
ger cent. such dividend to bs cumulative
provided further that Ons-half Of thu
net earnings should be paid into q sur.
NNS 'und after dividend claims had beer
met until the fund amounted to 90 pei
,r, ,ah' or the paid in caphai Of the bank
I"e remaining One-half was to be PAID
~ The United StateM
Divtd-nd Not DistusbeS.
me per cent dividend to b. paid Il
e'"rehoiders 10 not disturbed by tn,
n"'ehdment. However, Il 10 provided
'na' 20 per cent II thu net earning,
"'ovs dividends and lther lawful claim,
fhaii be paid to the jovernnient, and I;
yer cent, to the sharehuldinS membs.
banks
Chairman 0fass also gave out the tex,
W The important Amendment cveatin~ A.
an''sory hoard to the Federal reserv1
''ard This amendment reads az follows
Ihere is hereby created . Federal ad.
s.sorN council which shall consist OF q
""sh' members as there are Federal re.