Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-11-22
Z MONEY BILLS
REPORTED To
SENATE
Owen and Hitchcock Plans Both
Go to Floor, Committee
Failing to Agree.

mittee to-day reported it's agree
ment to disagree" by presenting two
separate measures for currency re-
form.
One was framed by Senator owen
and half of his Democatic colleagues.
The other was framed by Senator
Hitchcock, a Democrat, and five Re
publican members of the committee.
For many weeks the committee had
been tied in a knot by discussion of
the measure passed by the House, and
now the Senate as whole will have
to solve the whole tangle.
Contingent bank control of the pro-
posed regional reserve system, bank
ownership of the new system. redemp-
ton of notes in gold or lawful money,
eight regional reserve banks, and lib
eral provisions for farm loans are
the principal features of the curren
cy bill prepared by Senator owen and
his five allies.
Despite 800 amendments to the
House bill the Owen bill closely re-
sembles the measure Endorsed by the
Administration before currency legis-
lation was transferred to the Senate.
Rearranees Amendments.
The Hitchcock report, as submitted
to the Senate, contains detailed ref
erence to the amendments to the
House bill, which were adopted by
the Senate Banking and Currency
Committee before it split into two
factions. These amendments, APP
proved by a majority of the commit
tee, are retained in their entirety
in the Hitchcock draft, and few of
them, in changed form, in the owen
plan
The House bill provides that the
national banks should be compelled
to enter the proposed regional re-
serve system at once and that the
banks should own the capital stock.
The Owen draft provides that the
banks shall be compelled to enter the
system, but that the public shall be
permitted to subscribe for the stock If
the banks do not subscribe enough.
The Secretary of the Treasury is to
take up the balance of the stock re-
quired if the banks and public do not
take enough.
The Hitchcock plan provides that
the capital stock first shall be opened
to public subscription for the period
of so days, and that the banks shall
be required thereafter to take what
ever stock the public does not want.
Changes in Regional Banks.
Twelve regional banks are provided
in the House bill. The Owen draft
provides for eight and the Hitchcock
bill for four, with the proviso that
after four years the Federal Reserve
Board may increase the number to
eight If necessary.
In the House bill it is provided that
the regional banks should be gov
erned by a board of nine directors,
three to be named by the Government
and six by the banks, with the pro-
viso that the Federal Reserve Board
should have power to remove three OF
the bank appointees. The owen Dill
retains this provision, except that the
Federal Reserve Board is given power
to remove all of the banks appoint
ees
The Hitchcock plan provides that
the Government in the beginning shall
appoint a majority of the board and
that the banks should all name four
members only.
Control of Banks.
The House bill further provides that
the asset currency proposed by the
bill, shall be redeemed in gold or law
full money.
The owen bill retains this except
that the notes presented to the Uni
ted States Treasury shall be redeemed
in gold only. The Hitchcock draft
provides for gold redemption only
These four differences are regarded
as fundamental in the reports made
by the two factions.
The owen report defends the slight
ly altered House bill provisions for
bank of ownership and control on the
ground that such provisions were
necessary to interest the banks. indl-
eating that unless the banks were in
terested the system would not be
practicable.
The Hitchcock report defends pub
lie ownership and control on the broad
ground of the propriety of public own
ership of public service institutions.
For Guarantee of Deposits.
The owen draft provides for a
board of seven members, holding of
flee for siX-year terms, at a salary OF
$4,000, while the Hitchcock draft
provides for board of nine members
appointed for eight years at a salary
OF $4,000 per year.
The report accompanying the Hitch
cock draft points out two novel fea-
lures of the Hitchcock draft-the pro-
vision for an insurance fund to be
held for the decentralization of de-
posits in failed banks and the pro-
vision for the issuance by regional
banks of one year gold notes to re-
place outstanding 2 per cent bonds.
The latter provision Is defended as
a necessary mechanism to maintain a
gold supply in the United States ade-
quate for the redemption at all times
of the currency in circulation.
Owen to Open Debate.
Senator owen on Monday will be-
gin a set speech celebrating the re-
port submitted to-day and detailing
the history of banking with refer
ence to its application to American
needs This speech will be followed
by one by Senator Hitchcock. These
speeches will consume the first three
days of next week Thereafter seri-
Gus consideration of the bill will be
postponed until the regular session.
IN