The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-11-05
FOUR REGIONAL BANKS.
COMMITTEE DECIDES ON THAT
NUMBER or RESERVE BANKS
AT PRESENT WITH
MORE LATER.
Radical Amendment Opposed by Adj
ministratiOn Supporters in Com
mittee-FOur May BE Increased to
Twelve After Two Years-Four
Banks to Have 100000. 900 Capital.


Washington, Oct. 31.-The senate
banking and currency committee to,
night tentatively agreed upon four
regional reserve banks for the pro-
posed new currency system, with a
prOviso that after two years the fed
eral reserve board may add as many
additional banks as it deems neces-
sary, not exceeding ~. The pending
bill fixes the number at II and it has
been understood that the administra-
ton would not consent to have it re-
duced below nine.
The sharp reduction in the num-
ber of reserve banks was the first
radical amendment the committee has
agreed upon and it was earnestly op-
posed by administration supporters in
the committee. Senators O'Gorman
and Hitchcock, however, voted with
the five Republicans for the reduc-
ton, leaving but five Democrats be-
hind the administration proposal.
President Wilson, it became known
tonight, looks with disfavor on the
action of the committee today. He
believes there should be at least 10
regional reserve banks, and he had
been assured by administration sup
porters in the committee that today's
series Of votes only was of tenta-
tive character designed chiefly to
sound out the attitude Of the members
towards fundamental portions of the
bill.
The president was advised that
probably there would be q reconsid-
Grafton of the vote at subsequent
meetings. 1t is thought that even
tually the number of reserve banks
may be fixed at seven, with discre.
tion given to the federal reserve
board to increase the number to 10
or IL within a certain period. Such
an arrangement, it is believed, would
prove acceptable to the administra
ton.
The committee still has pending
the proposal to abandon entirely the
administration regional plan and to
create a government controlled CEN
trail bank. There also is pending Sen.
atOr Reeds proposal that the unifca-
tion of the regional banks be accom-
plished by the creation Of a govern
ment clearing house as reservoir.
The question of the capitalization
and stock ownership of the proposed
regional banks was taken up imrlc-
diately after arrangement YVES ten
tatively fixed, but no decision was
reached.
Chairman Owens tonight expressed
the opinion that the bill would be
amended to eliminate the admins
tratiOn provision under which banks
would be forced to subscribe the cap
ital Of the regional banks. The stock,
he said, probably would be thrown
open to public subscription. Stock
holders would have no voice in the
management Of the banks, he said,
which would be entrusted to a board
of directors to be appointed by the
federal reserve board, thus ensurng
complete government control.
The total capitalization of the four
regional banks, Senator owen said,
probably would amount to $1OO,OOO,-
900.
The administration supporters con-
tested every step in the reduction of
regional manks. The proposal to in
crease the number after two years up
to 12 was voted into the bill with only
two members opposing it.
The committee hopes to decide
the law as to the ownership
and control Of regional banks tomor-
row and it is expected that with mat
ter disposed of, the serious questions
in dispute speedily will be adjusted.
Tomorrow the committee will re-
cess to allow various members to go
to their homes for the elections, con-
sideration OF the bill going over until
Wednesday.
MONTHLY REPORT.