The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-04-23
BEAR APPROVAL OF
ADMINISTRATION
Win Provide for Fifteen
Regional Reserve Banks
Which Would Act as Fis-
cal Agents for the Gov
ernment-Boards Would
be Established to Super
wise These Banks.
BY ASSOCIATED PRESS.

Washington, April 22.@Chairman
Owen, Of the senate banking and cur
rency committee, called its members
together today and advised them of
the results Of informa. conferences
with President Wilson, Secretary Nc
Adoo and Chairman Glass, of the
house banking committee, on the sub
ject Of currency reform
Working informally. obtaining the
views of the president and his advis-
ers. Senator Owen and Representative
Glass have been looked upon as the
men who will frame a measure to be
known as tn Owen-Glass bill, to be in
troduced at the same time in both
houses and carrying with 1t the ad-
ministration's approval Some of the
provisions which eventually may be
found in the bill became known today.
These include:
RESERVE BANKS.
G-F1fteen regional reserve banks
which would act as fiscal agents for
the government receiving deposits OF
pubic moneys, acting as banks of dis
count for the banks In their respective
regions and receiving a part of the re-
serve of the banks Of the country.
Currency would be issued through the
regional reserve banks. Practically all
the capital stock OF these institutions
be the property OF the banks Of each
region.
GA governing board to supervise
the regional reserve banks would be
established to consist of the secretary
of the treasury, the secretary Of agri-
culture and the comptroller of the
currency as ex-officio members; four
directors chosen by the banks of the
country and two directors appointed
by the president of the United States
(3)-The elasticity of the currency
would be provided for by conditions
calculated to prevent imitation. Any
notes issued would be redeemab!e IN
gold by providing q reserve for actual
delivered redemption. There has been
some question as to whether these
notes should be United States notes |
to the banks upon an in |
terest charge high enough to prevent |
imitation or be national bank notes un- |
der like conditions. State banks would |
be required to increase their reserves.
(4)-To the extent to which the re- |
serve could be used has not been de- |
termined but one plan is in favor of /
permitting their use under q reason
able tax. With respect to the rate Of |
discount It has been variously sug-
gested that the governing board might
require the rate to be made progress
sive when there was an in increasing |
demand for currency so as to stiffen
the open market rate and attract gold
after the system used by the
Bank of England.
Ozone Of the plans suggested and
which Representative Glass advocated
in a recent speech was to retire the
present bond secured currency, not at
once, but over a period of ten to ff-
teen years, which might involve a re-
funding Of the two per cent bonds with
the circulation privilege into 3 per
cent bonds without the circulation
privilege. AS the bond secured cur
rency would be retired, a substitute
based on commercial paper of
a qualified class would automatically
take it's place.
Those democratic leaders working on |
currency reform declare the completed
changes will be neither radical nor
abrupt but will merely perfect the
present machinery and facilitate the
,ountry's banking system. The plan |
hat will be finally evolved, they also
assert, will be substantially different
rom the So called Aldrich plan. There
s talk of establishing branch banks
abroad to obtain for American bankers
l share of the foreign trade and COM
nercial nsactions. With respect to
he subject of guaranteeing bank de-
1osits. however, the currency advo-
.ates are pra acticaIly unanimous that
his should be kept separate from any
currency bill and that If attempted at
Ill 1t should be taken up after the
monetary reform is in actual opera tipn
when bankers themselves might deter
nine whether they wished to establish
IN insurance fund, possibly out Of the
earnings of the regional reserve insti-
T1tious