The Washington herald., 1913-12-20

lette, Lippitt, McCumber, Mclean. Mel
son. Oliver, Page, Penrose, Root, Sher'
man, Smith Of Michigan, Smoot. stephen
son, Sutherland, Townsend, Warren. anc
Works, Republican. TotaL.a
The following Senator's were absent anC
paired: Burleigh, Clark, Wyoming; Cul
berson. Fall, Lodge, Stone, and Thornton
Hitchcock Bill Barely Defeated.
There was a surprisingly close vote or
Senator Hitchcock's bin, offered by tht
Senator from Nebraska ss a substitute
for the administration bill. The Hitch
cock bill was reported to the Senate BY
the five Republicans who make up tht
minority of the Banking and Currency
Committee, and by Senator Hitchcock
1t was defeated by vote of A to Al.
All OF the Republicans and Senator
Hitchcock and Senator Poindexter, the
Progressive, voted for it The forty-foul
votes cast against it were by Democrats
There was one tie vote recorded in the
closing hours of the consideration OF the
bill. 1t was on an amendment offered by
Senator Brandegee, of Connecticut, re-
quiring that all appointments made under
the Federal reserve board shall be made
in accordance with the civil service law.
Line Up with Republicans.
Three Democratic Senators-Hitchcock.
Thomas, and Lane-voted with the Re-
Eublicans. The tie was broken by Vice
President Marshall, who voted in the
negative. thus keeping the appointments
out of the civil service law, and making
them the spoils of the Democratic poll
Iicians.
Immediately following this vote SEN
ator Jones' of Washington. offered an
amendment providing that nothing in the
60
the President from placing these en-
pioyes within the classified service after
they had been selected Senator Jones,
who is a Republican, insisted that TINS
amendment was a necessary complement
of the bill, which had made these ap-
pointments the prey of the spokesman.
His Republican colleagues urged him to
withdraw the amendment, and many OF
them voted against IL. But nearly all
OF the Democrats voted for it, with the
result thai the amendment received
sixty-three votes and was carried in the
midst of hilarity on the Democratic side.
This amendment by Senator Jones was
the only one put into the bill last night
that was not submitted on behalf OF the
Democratic side, with the sanction OF
the caucus, except an important amend
ment by Senator La Toilette, as follows:
Provided, That no Senator or Repre-
sentative in Congress shall be a mem
ber of the Fedora reserve board, a d.
rector Of the Federal reserve bank, Or
an officer or director Gt any member |
bank
As his amendment was originally |
drawn, Senator La Toilette excluded |
Senators and Representatives from be- |
ing stockholders in member banks But
at the suggestion of both Democratic
and Republican Senators, he omitted that
feature from his anendment, and 1t was
adopted with the approval of the Demo-
Gratis, on a viva voce vote.
Senator La Toilette led another night
at the night session, to prevent inter-
locking directordtes, in which he made
an attack on the National City Bank and
big business generally. But his inter-
locking amendment was defeated on a
roll call, 81 to 30.
Last Few Hours Exciting.
The last few hours of the consideration
of the currency dill were interesting and
at times exciting. Senator Hitchcock took
occasion to explain his attitude towards
the pending bill
Il shall vote for it, said he. 81 have
never for a moment had any other pur-
pose. My whole fight has been to
and improve the bill and to J
prevent hasty and laundering legislation.
To attain any measure of success. ,
found 1t necessary to go to extreme {
lengths and to make some sacrifices I
feel fully justified by the result The bill =
as ordinarily introduced in the House by =
Mr. Glass and in the Senate by Senator :
Owen has been changed over so per cent .
IN letter and nearly as much in spirit" {
Hitchcock Enumerates Changes. r
Senator Hitchcock then enumerated the I
,hanges by which the bill had been i'm Il
proved:
Character and makeup of the Federal v
'eserve board have been greatly i'm u
proved and IT has been in part rescued
rom political subservience.
"A gradual transfer of reserves from
,snks now holding them, instead Of a :
udden transfer. has been provided for.
hus greatly reducing the shock to the
business world
Insurance of bank deposits. b.
Equal treatment of member banks IN Is
he matter of rediscount privileges has d.
'een stipulated for. "
six months paper held by banks in
gricultural regions has been removed ia
rom the blacklist and admitted to dis pt
cunt privileges in limited amounts. ihi
Member banks have been authorized il
o make farm mortgage loans for five ci
ears, in limited amounts. IP
TT has been provided that Federal Is
seserve notes shall be redeemed at the
'reasury in gold or gold certificates only. re
"A gold reserve of Federal reserve G,
anks has been increased from 30 1-3 per D
ent to 40 per cent. a
"a tax on the deficiency in the reserves of
eld against deposits in Federal reserve ci:
anks has been provided fer. fu
"A reduction in the number of Federal
eserve banks from u to has been made ,
ossible."
Not Complete in Details.
Senator Hitchcock claimed that all of
Iese Improvements in the bill had been
ought for by his wing of the committee,
of the Republicans and himself II
lie admitted that the bill was not as m
Omplete in these details as it should be- it!
1.-The Federal reserve board should be nE
Lrger and the term of its members long, dc
:. The transfer of reserves should be
ade even more gradual. Federal reserve til
otes should be made redeemable in gold hs
My at the reserve banks as well as a
le Treasury. The gold reserve against fr
otes should be at least 5 per cent in co
cad of 40. The number of Federal re- W.
rive banks should be further reduced W.
nd some automatic restrictions of bank ap
edits and currency provided. l regret mi
at We could not secure public owner
ip of the stock and government control W
the banks
But we have cause to congratulate the OF
untry on what has been secured. have
y nlisgivings, of course, as others have
he prospect in the United States is not Y
together bright. There are clouds in de
e sky. There may be dangers ahead" an