The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-11-15

capital stock, and had accumulated g
~ per cent surplus, the remainder o1
the earnings should be equally divide
between the government and n fnnd ~
guarantee deposits. Senator Bristoys
was allowed time to draft his proposaI
into the earnings sections of the hill
Inc administration bill will provide
mat the banks shall pay 8 per cent div.
idends on their stock, accumulnte 81 oC
per cent surplus, and that all the earn.
ings above that figure shall 90 to tbc
government. '"'
The Democrats eliminated from Tho
redemption section of the bill the NJ
vision that the new currency shonld he
redeemable In "lawful moneyn aa well
as gold. The redemption was made on
a nat gold standard, but it was pro
vlded that the new reserve notes might
be held in reserve of member banks ON
the same terms as gold
Senator Hitchcock and the Renubl;c.
ans, holding that they were the only
bona fidc banking and currency com.
mittee organized today by designating
Senator Hitchcock, "the ranking Dem,
ocrnt,'.' as chairman. They declared
that the secret sessions Of Chairman
Owen and his administration senators
were entirely. outside Of the activities
Of the committee. Tho matter proba.
bly, will be Strengthened out tomorrow
when the administration forces plan to
go into the committee meeting and en-
deavor to arrange some programme for
report.
Senator Hitchcock and the Repub-
ncans went after the bill in vigorous
fashion. They eliminated entirely a
provision allowing the appointment of
receivers for 1nsolvent regional banlcs,
holding that n receiver would only tie
lin, ha nrft trn -
and that there was no possibility of a
regional bank failing. The administra-
tion senators put in n provision that no
receiver ehould be appointed, but that
tho federal reserve board should "take
possession OF and administer tho func-
tione Of any regional bank which
might become insolvent.''
The Republicans rewrote the redis-
count section to provide that any mem
Der bank with eligible paper might So
cure, as a matter Of right, redis-
capitalization. Above that figure
their measure would provide tax of
one per cent for the first additional
fifty per cent Of the amount Of tho
capital stock, and two per cent for the
second additional fifty per cent. Above
this point the consent of. the federal
reserve board would be necessary to
further rediscount, Under tho admin
istration bill the rediscount provision
bill would be entirely controlled by
the regional banks and would be un.
limited.
In response to the plea Of country
banks that they would be unable to
take advantage of the rediscount pro-
vision If only paper maturing within
ninety days was eligible, the Republi~
cans amended the bill to allow the re-
gional banks to rediscount six months
paper up to one-half of the capital of
q member bank, provided suoh redis-
counts did not exceed 100000.
Both Democrats and Republicans
adopted amendments giving the federal
reserve board authority to reserve di-
rectors Of the regional reserve banks.
The Republicans, however provided that
such removal must be preceded by no.
tioe and hearing Of the director,
The Republicans declared that they
would be unable to present their final
draft Of the bill before the end of next
week, and that they would hardly be
ready to report before week from
Monday. The Democrats, however, are
anxious to get the bill before tho senate
and it is probable an agreement Will be
reachee tomorrow TO report it some
time next week.