The Washington herald., 1913-12-21

Republican. as conferees on the part Of
the House.
The House members named and Sena-
tors owen. o'Gorman, Reed. Pomerene,
Shafroth, and Hollis, Democrats, and
Nelson, Crawford, and Weeks comprise
the conference committee.
Oppose Insurance Feature.
The first meeting of the Conference
| Committee of the Senate and House to
adjust the points OF difference on the
currency bill, which adjourned at
O'Clock last night practically determined
| to eliminate the insurance of bank de
posits. Several members of the Con-
| ference Committee admitted after the
| meeting that this feature would go out.
The first brief session, which lasted for
little more than an hour, was devoted
| to considering the real issues between the
| two Houses. The conference met again
at s o'clock last night and continued un-
| til nearly midnight. The House con-
ferees, led by Chairman Glass, intimated
they would insist that the capitalization
OF the regional associations should be
per cent OF the aggregate capital OF
the national banks of the country, instead
OF per cent of capital and surplus, as
the Senate amendment provides.
mean a reduction of the capitalization
about one-half. or to an amount approx
mating the total OF paid-up capital re-
quired under the Senate bill. The Senate
amendment fixes the subscribed capital
at approximately sl0s,OOo 900. but requires
that only one-half be paid in, the rest
remaining subject to call. The House
conferees took n stand in favor of re-
storing the Secretary of Agriculture and
ek sk, 90
bership in the Federal reserve board.
along with the Secretary OF the Treasury.
II is believed probable that the final
compromise between the two Houses will
be the retention as ex officio members OF
this board OF the Secretary OF the Treas
ury and the Comptroller OF the Currency
only and the elimination OF the Secretary
OF Agriculture.
Number OF Regional Banks.
At the very outset of the conference,
the House members declared that they
would not yield to the limitations put
upon the number OF regional banks fixed
by the Senate. The House bill author
lied the creation of twelve or more re-
gional banks. The Senate amended the
provision to provide for any number be-
tween eight and twelve. The House
members of the conference committee
expressed a willingness last night to ac-
cept a compromise, making eight the
minimum. but fixing no maximum, so
that the Federal reserve board could. in
its discretion, adopt the suggestion OF
Senator Newlands and establish forty
seven regional banks.
Other points of difference that will have
to be disposed of are:
The change in the character and make
UP of the Federal reserve board.
The amendment providing for a gradual
shifting of reserves from present reserve
centers to the new regional banks con-
templAed by the new system.
Recognizing as a matter of right the
privileges of member banks to claim
equality OF treatment in the matter OF re-
discount privileges, and admitting six
months paper held by banks in agricul-
tural regions to rediscount under certain |
limitations.
Authorizing member banks outside of
reserve cities and in agricultural COM
munities to make longtime farm mort |
gage loans in limited amounts.
Requiring that Federal reserve notes |
the gold reserve required to be held in |
the Treasury Department against such |
notes from 80 1-3 per cent to 40 per cent. |
protecting this reserve against deple- |
ton by a progressive tax.
There are other minor points OF diff |
ference as to the choice of directors OF |
the regional banks, but the amendments |
made by the Senate outlined above rep
resent the principal differences between
the two Houses.