The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-02
Is Practically Measure
Written by Carter
Glass.
THREE MEMBERS
ARE OPPOSED
Representatives Ragsdale and
Henry Will Carry Fight
Against Bill to Floor of Dem
ocratic Caucus-Interlock-
ing Directorate Clause
Eliminated.

Washington. August 1.-Consid era.
tion Of the administration currency
bill was practically concluded tonight
By the Democrats OF the House Bank
ins and Currency Committee after moro
than Ave weeks OF constant and stormy
discussion. The bill was ordered
closed and reported. and Monday the
Democratic committee members Will
take a formal vote on recommending
the measure TO the Democratic caucus
1t viii go to the caucus with the dis
approval of at least three members Of
the committee, it was virtually certain
Tonight.
AS closed tonight, the bill differs
little in its essentials from the admin
lstration measure framed by Repre-
sentative Glass chairman Owen, of the
senate committee, and Secretary of the
treasury McAdoo. and approved by
fresideht wilson. Complete govern
ment control of the Federal reserve
board. which will direct the new bank
ing and currency system, deemed by
the President the all-important factor
OF the bill. was retained. At the elev-
enth hour Democratic members of the
committee incorporated an amendment
providing for an advisory board Of
bankers to advise" the Federal re-
serve board. This amendment was in
the nature OF compromise with the
banking interests, which protested Wig
orously against the exclusively gov
ernmental feature of the control of the
/ board.
Alter Redtscount Clause.
Another important amendment in
! corporatcd in the bill. altered the re-
discount section comforting the power
to require Federal reserve banks mu-
tuaily to rediscount paper. A change
was made in the division of the earn
~
created by the law Originally. the
banks were allowed yearly cumula-
tive dividend Of per cent. and a sur
plus equal to 20 per cent of the paid
| In capital stock. All earnings above
these amounts reverted to the govern
ment.
AS amended, the balance OF earnings
after the per cent dividend and the
20 per cent surplus. will be paid so
per cent 70 the government TO be used
as sinking fund to reduce the ma
tional debt and 30 per cent to be di-
vided among the member banks In pro-
portion to their balances in the Fed
eral reserve bank concerned. In the
reserve section the committee reduced
the period during which bank must
hold % per cent reserve against de-
postors from twenty-six months to
sixty days AS finally passed, the re-
serve section requires that after
banks must keep their IL per cent re-
serves either in their own faults or
in the Federal reserve bank of the dis
trict in which they are located.
BY vote of Z to 5 the conference
to-day struck from the bill provision
previously ordered inserted, forbidding
lnterlockng directorates between
banks. 1t was stricken out on repre-
sentations that the President believed
IL should be considered apart from
general currency legislation.
The so-called insurgent amendments
to the bill. providing for currency on
warehouse receipts for cotton. corn and
wheat, were voted down to-day by a
viva voce vote with little discussion
Representative Ragsdale and Repre-
sentative Henry of Texas will carry
the fight for these amendments to the
floor of the Democratic caucus
CIough Is Hcnt of Northern Pacific.
New York. August 1.-William r.
ofouEh' vice president and a member