Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-02
currency REFORM
NOWSTEP NEARER
House Committee on Banking
Concludes Work on Amend
ment. to Pending Bill.
OPINIONS GREATLY DIFFER
ON ACTION BY THE SENATE
Deep-Rooted Indisposition to Take
Up Subject at Fag End Of q
Wearisome Session.

BY the action Of the House committee
on banking and currency last evening in
concluding the amendment Of the pend
ing bill. possible legislation at this ses-
sion on currency reform has been brought
a step nearer. The committee will re-
port the bill to a democratic caucus to
be held August II, and there is every
hope that the measure will soon there
after be under consideration in the
House
Opinions differ as TO the action by
the Senate. 1t is we'll known that there
is deep-rooted indisposition on the part
Of many senator's to take UP such
weighty subject as currency revision at
the flag end Of a long and wearisome
session devoted to the tariff. One can
hear predictions freely made around the
Senate that as soon as the tariff Is out
Of the way Congress will adjourn
But President Wilson has iterated and
reiterated his desire to have currency
legislation at this session. If he insists
senator's admit that he may in the end
induce the Senate to remain in session
and pass the bill.
May 60 Over Until December.
Another guess as to the outcome one
hears Is this: that the House will pass
the bill, the Senate committee will re-
port it, and then it will be postponed to
a date certain in next December, when
the long session begins.
Senators who advocate this course say
that Secretary McAdoos announcement
- l.. IT, 20 rnnn
stringency at crop moving time should
relieve anxiety as to the money situa-
ton, coupled with the fact that there Is
still the emergency currency provision to
fall back on.
So. with these conflicting views, opin-
ions and interests, ii Is difficult to fore
cast at this time just what Congress
may do with the currency bill
Few Radical Changes.
The committee on banking and currency
made very few radical changes In the
sill as it was introduced by the admins
tration. although the public had been led
TO believe by the pulling and hauling in
the committee and reports Of friction that
the bill was being torn to tatters and
patched UP again, day by day.
That q minority report will be submit
ted by the ''insurgent committeeman Is
by not more than three members The
committee late yesterday afternoon bowl
ed out most decisiveiy the proposed
amendments to Issue currency on agricul-
plan will carry their fight to the caucus
The committee. by a vote Of 8 to 5. also
defeated an amendment prohibiting a
person serving as director on more than
one bank. President Wilson suggested
that this proposition should be considered
apart from the currency bill. 1t was one
OF the recommendations Of the Pujo re-
port.
The most important amendment made
in the bill by the committee was a con-
cession to the demands of the banking
interests that they be given some repre-
sentati0n in managing their own Affairs
under the new reserve system. This 10 a
section creating an advisory board and
Is as follows:
Advisory Council Created.
There is hereby created a federal adj
visory council. which shall consist Of as
many members as there are federal re-
serve districts. Each federal reserve
bank by its board Of directors shall an
nually select one member of said council,
who shall receive no compensation for
his services. but may be reimbursed for
actual necessary expenses. The meetings
Of said advisory council shall be held at
Washington, d. c., at least four times
each year and oftener il called by the
federal reserve board.
THE council may select its own officers
and adopt Its own methods Of procedure
and q majority OF it's members shall
constitute q quorum for the transaction
! of business. Vacancies in the council
shall be filled by the respective reserve
| banks. and members selected to Ill va
| cancies shall serve the unexpired term
THE federal advisory council shall have
power Cd to meet and confer directly
with the federal reserve board on gen
eral business conditions: CD to make oral
or written representations concerning &C.
lions taken. proposed or contemplated by
said board: go to call for complete In
formation and to give advice concerning
discount rates, rediscount business note
| issues. reserve conditions I'm the various
districts. the purchase and sale OF gold
or securities by reserve banks. open mar.
ket operations by said banks and the
general affairs OF the reserve banking
| system.
Rediscount Section Altered.
Another important amendment incor-
porated in the bill altered the rediscount
section comforting the power to require
| federal reserve banks to mutually redis-
count paper.
A change was made In the division of
| the earnings Of the federal reserve banks
| created by the law. Originally these
banks were allowed a yearly cumulative
dividend Of 5 per cent and surplus
equal to 20 per cent Of the paid In CAPT.
| tai stock.
All earnings above these amounts re-
| verted to the government As amend
ed the balance Of earnings after the
/ . per cent dividend and the 20 per cent
surplus will be paid, 50 per cent to
/ the government. to be used as q sink
| ing fund to reduce the national debt
| and 40 per cent to be divided among
the member banks in proportion to
their balances in the federal reserve
bank concerned.
1 In the reserve section the committee
reduced the period during which q
4 bank must hold 20 per cent reserve
against deposits from twenty-six
months to sixty days. As finally passed
| the reserve section requires that after
q period OF gradual changes. the coun-
| try banks must keep their 10 per cent
| reserves either in their own vaults OF
In the federal reserve bank OF the dis
! trict in which il Is located.
CHICAGO LIVE STOCK.