The Sentinel=record., 1913-11-19
CURRENCY COMMITTEE PLAN. MING FOR THE TRANSITION
 TO NEW SYSTEM.
BANKS NEED PROTECTION
In Order to Accomplish the Exchange of Funds to the Regional Banks. Wilson Objects to the Early Ad- Iournment of Congress.

protecting the country against any l possible financial stringency when
 the proposed new currency system ! goes into effect were considered to. ! day by both the democratic and re- ] publican wings of the senate banking and currency committee.
 i In each case amendments to the administration currency bill agreed i upon were designed to cover the ! transition period" while banks are ! transferring their reserves to the pro ! posed new federal reserve banks. The
 would permit local banks to deposit 1 half the required reserve in the re- gional bank in the form of conner 1 cial paper instead of requiring the en- tire deposit to be in cash. Another amendment would authorize the fed eral reserve board to make the treas ury notes and the present bank notes i eligible for use as part of the re- | serves to relieve embarrassment duc- ing the transition period. The re- ] tinuing their work on the draft of
 the bill adopted a more radical change providing that banks need depos,t only 1 per cent reserve when the new system becomes effective, an
 additional i per cent to be deposited each six months until the entire re-
 se2xe-of per cent has been provided for
 The work of the two branches of the committee was not concluded to- day and will be resumed tomorrow. The republican members sent their draft to the government printing oi- flee tonight but will revise it tomOr- row The democratic caucus to con- sider the administration bill probably will not be decided upon until after the steering committee" which met
 today has another conference next Thursday,
 President Wilson let democratic senators know in positive terms to-
 day that he was opposed to the move ment now under way to secure an ad- journment of congress for the week prior to the opening of the regular December session He told several senators that the country would charge congress with adjourning for the purpose of securing their mileage allowance.
 Changes in the currency bill made by the democratic wing of the com mittee today were the result of fig u.es presented by Chairman Owen, showing that the shifting of the re- serve in the bill IS originally drawn
 would have taxed the reserve money
 of the country.
 The administration forces once
 more reinstated the disputed lawful money" provision. The clause pro vides that the new currency shall be
 payable in gold at the treasury i'll Washington but shall be payable in
 gold Or lawful money at each re- gional bank. In this connection the committees strengthened the gold re- dempton fund requirements. The
 legal tender" quality of The new
 notes provided for in the bill after a lengthy discussion and rather heat
 ed struggle, was stricken out again
 today. The representation of the
 banks in the directorates of the re-
 gional reserve banks was altered to allow directors elected by the mem-
 Der banks to be directors Of officers
 of other financial institutions. Farm loans as an investment for national banks would be authorized :n an amendment written into the re-
 publican draft. Senator Hitchcock
 and the minority members amended
 the bill to provide that national
 banks may invest one-third of theiI
 time deposits in five year farm mort
 gages based on 50 per cent of the value of the land mortgaged The
 republicans struck out of the house bill the requirement that national banks must segregate the capital and assets behind all funds held as say l ings accounts. The bank examina- | tion section of the bill was revised
 the committee providing that bank
 examiners shall be placed on a salary
 of from $2.O0O to s7,000 a year, thus eliminating the fee system.