The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-20
He Describes It as
Basis for Legisla-
tive Action"
WILL BE STUDIED
FOR ALTERATIONS
It's Three Principal Objects Are:
Providing Means for Redis-
counting Commercial Paper,
Basis for Elastic Notes and
Machinery for Doing For
eign Banking Business.

Washington. June 19-The admins
tration currency bill was made public
tonight by Representative Carter
Glass. chairman OF the House Commit
tee on Banking and Currency 1t will
he introduced in the House and Senate
after President Wilson has delivered
IN person his address to Congress on
Monday.
An outline of tho measure. prepared
by Mr.. Glass. Describes il as "a basis
Tor legislative action" states that il
VIII De gone over in Ietail fo, altera-
tons. and sets out that its purpose is
TO accomplish three principal objects:
PROVISION of means for rediscount-
ing commercial paper OF specified types
basis for elastic notes properly
sa feguardcd
Machinery for doing foreign bank
ing business
ihe measures essentials remain as
they have been outlined from time TO
time since the President began study
OF the subject with House and Senate
leaders. Secretary McAdoo and other
advisers. providing twelve or more
Federal reserve banks. which Will re-
discount paper deal in government Sc
curities. exchange and conduct govern
ment fiscal operations. National banks
and such State banks and trust com
panies as conform to standards would
be stockholders of the reserve banks
inc government would hold no stock
Government Would Control.
The government would control the
Federal reserve banks entirely through
a Federal reserve board of seven MEM
bers. in which the banks would have
no representations The board would
be composed of the Secretary of the
Treasury. Secretary Of Agriculture, the
Comptroller Of the Currency as mem
bers ex-oficio: four other members
would be chosen by the President and
confirmed by the Senate.
The national bank note circulation
would remain undiSturbcd, and no pro-
posal is made in the bill for retiring
approximately 500, 900 . per cent
bonds. upon which that note issue now
rests An amendment or separate bill
TO refund those bonds into per cent
bonds may he introduced later
In addition to the S7o0, oO0. 900 exist
ing national bank notes. not more than
S5oO.o0o.oo0 in what are TO be known
as Federal reserve treasury notes might
be issued at the discretion of the Fed
eral reserve board in making advance
to the Federal reserve banks. which
would do no business with the public
deal only with their member banks and
receive deposits only from the United
states. While the notes would on
their face, purport To be the obligations
OF the United States. they would be
required 10 be secured by gold reserve
of 33 Is per cent. provided by the
Federal reserve bank, would be a h:st
and paramount lien on all the assets
OF these banks. and would he redeem
able in gold on demand 1T the Treas
ury Department in the city of Wash
nEton or any Federal reserve bank.
Stringent provisions are made against
counting amy OF these notes as Il part
OF bank reserves, aud the system Is
guarded against imitation hy lodging
power with the Federal reserve board
to exact any interest charge upon the
treasury notes in order 10 secure their
prompt redemption. The notes are not
made legal tender. but would be re-
ccivable by the government and every
bank of the system at par without eN-
change.
No change would he made in the pro-
lection of other existing notes.
The Federal reserve board would re-
CONTINUED on Second Pagel