The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-21
THREE SEPARATE
CURRENCY BILLS
TO Be PRESENTED
Final Preparations for
Battle on Floor
Of Senate.
UNABLE TO AGREE
ON AMENDMENTS
Divided Banking and Currency
Committee Will Lay Before Up
per House Measures Based
on Same General Theory,
but Distinct in Many
Features.

washington, November %. Final
preparations were made t"-d day FOR the
battle over the administration currency
reform bin on the iloor Of tie Senate.
which will betin Saturday. Three sep
arate and distinct currency bills. ali
based upon The same general theory,
viii be laid before the Senate bv the
divided Banking and Currency Com
mittee.
Unable To agree on amendments. the
committee VIII present thc Glass-Uwen
bill as originally indors"d by the adj
miniStratton ana passed ly tn. House
The measure, with amendments as
sumed to he acceptable to the Prcs-
dent. will be submitted by Chairman
owen and five other Democrats Of the
committee. Senators l'omcrei., Hollis,
Reed. O'GoriAan and Shafrotn.
bill materially changing The struct-
ure OF the House measure will be
presented by the Republicans, Sena-
tors Nelson. Weeks. Erstow. Mclean
and Crawford. and Senator Hitchcock
Democrat.
All three of the proposed bills CON
template the issuance or currency
secured by the prime commercial paper
held by the banks Of the country. Each
proposes the establishment OF reserve
banks. which will issue the currency
the banks, which will hold the reserves
behind their deposits, mobiiized for use
in any emergency and which will re-
discount the paper held by banks in
| the system, thus keeping available al
ways ample credit and currency for
use to ward off financial crises. Each
bill proposes TO put the entire sys-
tenn under the control OF a Federal re-
| serve board. to be appointed by the
| President.
! differ In Many roits.
| Although agreeing as 70 the pur-
| pose to bc accomplished by the pro-
/ posed Legislation, the three plans dif-
fer in almost cvory point rs to mcaDs
/ provided TO carry out these purposes.
AS il passed the House the Glass
Owen bin proposed the creation OF
twelve regional banks The Demo
Gratis Of the Senate committee cut that
down TO eight. the minimum number
the President was willing to accept
The Republicans reduced the number TO
! four. holding that the smaller num-
bcr could more effectively concentrate
the reserves Of the country.
The twelve regional banks proposed
by the House bill would be owned by
the banks. through compulsory sub
seription to the stock. and the banks
would elect six OF the nine directors
OF each regional institutions Thls
plan was retained by the Democrats
was further provided that If the banks
did rot furnish enough capital To run
the system. the stock might be sold To
the public. on this point Senator
Hitchcock and the Republicans depart
ed from the administration theory of
creating n bank of banks and ma
ter!ally changed the bill They pro-
vide that the reserve banks capital
should be subscribed by the public the
banks taking whatever part the pub
| lie would not take. and that the gov
crnment. through the Federal Reserva
| Es ard. should appoint five of the nine
directors OF each regional bank. This
was the proposition which split the
Senate committee.
Reduces Present Reserve.
Each OF the bills materially reduced
the present reserve. which national
hanks must hold against deposits The
| House bill would tiN the reserve ut II
per cent for country banks and is per
cent for banks in present reserve
cities. These rates were retained by
the administration forces In the Sem
ate committee, hut the Republican wing
cut down the reserves OF the city banls
to 10 per cent
In the House bill the paper made
eligible for rediscount and as basis
TOR currency is commercial paper. ba scd
on actual merchandising transaction
maturing III not less than ninety davs
This provision was retained BY the
democrats in the Senate committee
| put The Republicans broadened it ma
/ terially Under their bill. n part oF
Inc member banks rcdiscounts may be
hada IN PAPER maturing up 10 ain
months. the provision gives the ad-
vantage 10 banks with small capitol
which have little so-calied short-ti,nc
paper
Inder the House bill and the draf,
ny 'he senate committee Democrats
.ne , rcsiohal bank directors would have
discretion as 10 rediscountinc for m.r,
Der banks without limit. In tbc p..
puolcan bin, each member ban, ix
gwen inc right 10 secure rndisco,,nts
VI 70 the run amount OF its conif.,
ana under taS 10 twice that a,,o,,ut
nc goid reserve to be held by thc
regional banks I'm their vaults ana j.,
.nc ~. treasury against the now circula
tion IS fixed al 3a 1-S per cnnt ~
both the House bin and tho mn..,r
drawn BY the Senate committees pnn,o-
Gratis. The Republican draft. however
provides Tor 3a-pcr cent reserve
win II tax on reserves below that
iisufe down to a minimum OF % ner
cent, The House bin provided for ro
or lawful money" at tho treasury or
at the reserve banks. Tho Owen
amendment would make the notes re
deemable in gold at the treasury ana
sold or lawful money at the banks,
and the Republican draft provides fo,
u straight gotd redemption in both in
stances.
I.onns on Farm Mortgages.
Both the House bill and the owen
bill would allow country banks to loan
on ono-ycar farm mortgages The
Republicans amended this TO allow