The Washington herald., 1913-06-15
CURRENCY BILL
NOW IS READY
CONTINUED FROM PAGE ONE.

Currency. All with the exception of the
governmental officers will be appointed
or elected as the case may be. for long
terms, at comparatively high salaries.
Through this central board of con-
troll, the Treasury will issue notes TO
reserve associations secured O by
the deposit of gold In the Treasury
TO the extent of 33 Is per cent of the
note issue, CD by n FIRST lien on the
capital stock and gold reserve of the
association, and C3D by n double Sc
curity on the combined assets of the
reserve association and Its member
banks. To this end the central board
will have absolute supervision over the
entire system. In its discretion, upon
demand of reserve associations, IL will
be authorized to issue government notes
in amounts pro rated on the capital and
assets of the association. based on short
time commercial paper.
The government notes so issued will
bear a nominal interest rate for the first
four months. after which the interest
rate will advance. possibly as rapidly as
per cent per month. AS each member
bank will have to bear a part of this
tax, the disposition Will be TO redeem
the notes as rapidly as the short-time
paper upon which they are issued ma
lures. This fact is intended to break
any tendency on the part of individual
member banks to hoard their cash.
In order to keep the stronger re-
serve associations from boarding and
thus inviting sectional stringency, the
central board will have the power TO
loans 10 another upon commercial
paper. For such transactions the cen-
traI board will fix the interest rate.
The central board will fix the rate
of rediscount for ali reserve assoeia-
tions.
Secretary McAdoo Interested.
This is the plan which Chairmen Owen
and Glass have decided to place before
their colleagues as a working basis for
currency reform legislation. In its franz
ing Secretary McAdoo has been an ac-
tive participant. and with a few excep-
tions the Secretary is believed to repre-
sent President Wilson's views. There
is some doubt as to whether the Presi-
dent VIII agree 10 the metnod or secur-
ing the government notes.
One or two points have not been set
tied between Chairman Glass and Chair
man Owen. The bill has been drafted.
sent to the printer. redrafted and re-
turned to the printer at least six times.
but the shape in which II was sent Fri
DAY nignt is not expected 10 meet any
decided change before II is presented to
Congress or the committee
President Wilson now is working upon
his currency message. He may send II
to Congress early this week He refuses
to be dismayed by the revolt started in
the House Friday by Representative
Henry, chairman of the Rules Com
mittee.
Opinion is divided as to whether Mr..
Henry will be able to present currency
legislation this session. The best guess at
present seems to be that unless the lead
ers display more marked enthusiasm for
President Wilson'S programme, Mr..
Henry will have little difficulty in gain
ing a victory to the extent at least of
any currency legislation at
this session. He probably will not, how
ever. be able to bring about reopening |
Of the money trust investigation, the |
1stensible purpose of his revolt.