The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-11-30
That Appears to be the Method
Of Currency Legialation at
Washington in Con
ference Sessions.
BOND TROUBLES ARISE
How the Democrats Propose to Settle
That Question With the Ma
tIonaI Banks Of the
Country.

United Press Leased wire service
WASHINGTON, Nov. 29.Admit-
ting that preserving the par value Of
the two percent bonds Of the govern
nlent on which national banks issue
their currency was the greatest task
facing It in planning currency reform,
the senate currency conference devot-
cd three sessios today Mscussig how
this can be accomplished.
The value OF the bonds have been
crumbling. Where some national
banks purchased their allotment in
the open market at an average OF
1os because Of currency provision,
they are now quoted below par. With
out the right to issue bank notes Sc
cured by them at the proper price,
when the low rate of interest is con-
sidered would be about n. The con-
ference as a result debated plan
which is expected eventually to be
incorporated in the bill which will
maintain the party Of these govern
mental obligations. The proposition
favored is to have every national
bank in the country retire all notes
guaranteed by this class OF bonds.
Then the bonds will be repurchased
by the government at par The gov
eminent will sell them at this figure
to the various regional banks created
under the new law. The latter will
issue currency on them up to their
entire amount. This was the plan
favored attoday's conference although
some democratic senators favored re-
firing bonds entirely and replacing
them with straight three percent
| bonds.
The democratic senators held an al
most continuous session from 10 this
morning until Ii tonight. They will
meet again Sunday in an attempt to
get the bill completed before the reg
| ular session Of congress opens Mon
day at noon. 1t was made certain by
todays developments that the ulti-
mate result will be the endorsement
of the general terms of the Owen bill
! favored by the five democratic mem
| bers of the senate banking and cur
rency committee. The plan for RECON-
al banks capitalized by enforced sub
scrption OF banks and control by
bank selected directors banks TO
name six out of nine-was endorsed
by the conference. It was agreed,
however, that the bill should be
amended SO that the federal reserve
board should have the power to re-
move for cause any and all directors
OF regional banks. It was also agreed
/ the the bin should provide that while
the notes Of the region banks should
be redeemable at the banks them
selves, in gold or lawful money"
when presented to the treasury they
should be redeemable in gold alone.
1t became certain today that the
conference will not be able to frame
a bill which will not be assailed bit
terly on the floor of the senate.
h Tonight the caucus agreed to give
the federal board discretion to fix the
number OF regional banks at not less
than eight nor more than ten. Read
ing Of the bill was completed. Sew
eral questions were referred back tc
the six administration senators OF the
banking committee for a report Sun
day afternoon. Final action by the
caucus is certain tomorrow including
pledge or at lease gentlemens
agreement, binding all democrats tx
support the democratic causus draft
Oyertures made by republican sen
ators that certain features Of tn,
Aldrfeh bill previous rejected be in
corporated In this measure have bee,
definitely turned down. Many OF tn,
democrat senators freely admit tina
they know absolutely nothing abou
currency reform. Their plan is t,
pass a bill on which the majority 0
the democratic senators can agree
Then when 1t goes to conference be
tween the house and the senate the,
expect President Wilson to indlcat
just what he wants in the bill an,
they will stand by his wishes. Thi
Is now certain to be done and tn,
currency reform scheme as finally ar
proved will reflect absolutely tn
wishes OF the president.