The Washington herald., 1913-12-17
SECRET SESSIONS.
ON THECURRENCY
McAdoo and His Advisers
Said to Be Meeting
Every Night.
HITCHCOCK PLAN TABLED
Assures Adoption Of Administration
Feature Which Provides Seven
Members of Reserve Board.

While Democratic leaders and Republi
can leaders alike, in the Senate are striy
ing TO conclude debate and take a fina
vote on the currency bill tonight or to
morrow at the latest, in order that tn
bHl may go to the conference committe
Of the two houses and be agreed on h,
Saturday night the work of the confer
ence is being simplified by Secretary Nc
Adoo, II. Parker Willis and certain Dem
ocratic leaders who are meeting night,
in secret Meetings have been held n
the Raleigh Hotel, the Treasury Depart
ment, and other places, but always undel
circumstances Of great secrecy.
For several days mysterious hints have
peen thrown out from administration
sources that Secretary McAdoo was re-
heVing Congress of some Of the more i'm.
portant details that Senators and Repre.
sehtatives had been expecting later on to
commit TO conference committee Hints
nave Oeeh thrown out of midnight confer
ences III the Treasury Department
VI course there is additional ground
tor surprise IN the fact that the Secre-
tary OF the Treasury, with one of his
newspaper advisers, who has eHioved
some distinction in connection with the
authorship of the Glass bill. should tax.
over the work of legislating on the cur
rency- From time to time decisions
feached in these secret conferences have
oeen limited at. II was learned, for ex-
ample yesterday, that the proposed
guarantee of bank deposits in the ad-
nnhlstratlon bill has been eliminated by
Secretary McAdoo and the members OF
MS third House. They have also decided
10 limit the number of conferees, and
Ii Is said by those who profess to know
What is going on in the meetings that
cnly three conferees will be appointed
for each House. One Senator suggested
yesterday that he saw no necessity for
appointing any, in view of the volunteer
work that is being done by Secretary
McAdoo and his advisers.
Vote Is Close.
Aside from an expression Of surprise at.
these meetings, the only important de-
Nelopment in the currency situation yes
terday was a close vote on Senator
Hitchcock's substitute for the provision
OF the Owen bill authorizing the creation
of the Federal reserve board. Mr.. Hitch
cocks motion was tabled by a majority
of three, the vote being % to 81 This
means the adoption of the administra-
ton feature, which provides for seven
members of the Federal reserve board
of whom one, the Secretary of the
Treasury, shall be ex-officio, and the
other six to be appointed so that the
term of one member of the board shall
eixpre each year, resulting finally in a
siX-year term for each member of the
board. The Hitchcock amendment pro-
vided for nine members, inclusive of
the Secretary of the Treasury, of whom |
eight were to be appointed by the Presi-
dent for terms of eight years.
Senator Bristow opened the debate |
yesterday with defense of the guar
antee of bank deposits. He deyeloped |
quite as much opposition on the Re
fRan sir h.
but Senator Nelson, of Minnesota,
came 20 his relief Unexpectedly. Sen
atOr Nelson has been thought to be
opposed to guaranteeing bank deposits,
but he Joined Senator Bristow yester-
day, leaving Mr.. Weeks, of Massachu-
setts, the only member of the Repub-
lican minority of the Banking and
currency Committee opposed to guar
anteeing deposits. Senators Mclean.
of Connecticut, and Crawford, of
South Dakota, had voted for the pro-
visions.
Senator Root renewed his attack on the
bill late in the afternoon, charging il
would result in imitation. He asked for
automatic checks to be provided against
unlimited note issues, rather than leaving
the matter to the Federal reserve board
control, as the administration bill pro-
poses. Senator Root pointed out that in
many of the foreign countries, notably in
Germany, progressive tax is imposed On
note issues 10 prevent imitation. =!
Pressure VIII be Strong.
The conditions under which the board
appointed by the President and confirmed
by the Senate will perform its duties un-
1er our system of government" said Sen
ltOr Root, "and with our political habits, l
will be such that we cannot rely upon
their standing up against the pressure Z
that will be brought to bear upon them. J
It will be a case of always expand, never
contract. 1t is a broken reed a futile