The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-12-23
MANY REPUBLICANS
JOIN THE DEMOCRATS
Twelve Progressives, Thirty
Seven Republicans and
One independent With the
Majority On the Final
Vote, Only Sixty Oppos-
ing the Bill-Cheers Greet
Announcement of the Pas
sage
- AssoCTATED PREss.

Washington, Dec. 22.-The house
passed the conference report on the
administration currency bill at 1O:46
o'clock tonight by the vote of 29S to
80, and then sent the report TO the sem
ate which had waited in session to re-
ceive it before adjournment for the
night.
Cheers greeted the announcement of
the vote by Senator Clark. Many hur-
ried over to the senate to see the re-
port received there. Earlier in the
evening the senate had agreed TO vote
not later than two thirty o'clock to-
morrow afternoon. The leaders re-
gard it as certain the bill will reach
the hands of the president for his sig
nature before tomorrow night.
On the final vote thirty seven re-
publfcans twelve progressives and one
Independent voted with the majority.
Two democrats, Galloway OF Texas,
and Witherspoon OF Missouri, Joined
three hour debate, during which the
galleries remained crowded with spec
tators, many prominent in official life.
The house adjourned until two thirty
tomorrow when the leaders hope to put
through a joint resolution for recess
until January twelfth.
The senate's decision to take the
final vote on the conference report
WAS reached shortly before ten O'Clock
tonight.
PROVISIONS OF The Bill.
The new bill afEecting tire currency.
banking and finances OF the country,
which goes before President Wilson
for his signature. is one Of the most
far-reacning measures relating to n
nance that has been enacted in many
years The magnitude OF the subject,
the diversity OF interests affected, and
the length OF the debates IN both
branches OF congress- has made 1t diff
f1cult for the ordinary observer to fol-
he .na4a
tIals of this highly technical measure
in it's important bearings on money, |
finance, banking and the entire range
OF fiscal subjects, public and private.
which 1t AFFECTS With q view. there
fore, Of presenting succinctly and in
non-technical language an epitome OF
the salient features of the measure as
finally framed, the following summary
Is given of the bill as a whole and of
its principal details.
Generally speaking, the first steps to !
be taken to bring into operation the |
nations new financial system will be |
through an organization committee of
une secretary OF the treasury, secretary |
OF agriculture and comptroller of the /
currency. Banks have sixty days |
within which to flle their applications |
for membership IN the new system; |
and one years time is allowed before |
the government will compel the disso- /
lutfon Of any national bank that re-
fuses to join.
WILL HELP THE FARMER.
The new law win make little direct |
change in the operation Of the present |
national banks, except to allow them /
to loan certain amount of their funds |
upon farm mortgages. It's chief pur- |
pose Is to add a new piece of machin- /
cry to the banking system that will /
take up the slack during the chang /
that Will give the banks q place to |
quickly convert their assets into cash /
in time OF need, ard that will bring out /
new federal currency when it is need /
ed. and retire it when money becomes |
"cheap."
Banks are now required to keep a /
certain percentage OF their deposits as /
reserves, part in cash in their own /
vazlits and part OF which may be re-
deposited in the banks of New York.
Chfcago, St. Louis and other designat- /
ed cities. In times of sudden financial /
demands, when banks have loaned up
to the full limit OF their resources.
these reserves furnish little relief, be-
cause II they are paid out to meet de-
xnanda the banks are left in pre-
carfous condition.
The basic principle of the new law
liz 70 get these reserve funds out into
when necessary. without
lessening the safety OF any bank; and
to provide a place to which local banks
may rush in q crisis and get cash for
the prime commercial paper" they
Il
RESERVOIRS OF RESERVE.
This is to be accomplished through
4 chain OF regional reserve banks, or
reservoirs Of reserves" in which all |,
banks shall deposit a stated part of
The money they are required to hold Rs
reserves Under the new system. when
Z financial furry comes, the banks can
lake commercial paper, such as notes,
drafts and bills OF exchange, to these
= and secure the use OF
their own reserves. or II necessary
even the reserve OF other banks, by de-
posting this security.
The new regional banks will receive
about on@-haaf OF the bank reserves OF
tie country. They, in turn, viii be
Permitted to loan back TO the banks
All but 35 per cent OF these reserves,
20 that In case Of emergency, millions
OF cash can be brought out into circu-
latton quickly. The banks will have to
pay for these loans. however, as in7i-
F1duals nave to pay for a loan from
any local bank; and this charge is
@4naEfr 10 - l..