Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1913-12-27
PAGE TWO.

PAGE TWO.
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planned of the so.called high.handed
methods OF the caucus whereby re-
suits have been achieved as regards
tariff and currency legislation, many
Republicans freely concede in private
that the accomplishments Of The Dem.
ocrats under the leadership of Pres
ident Wilson have been remarkable
and haze won the admiration o. the
country. The results achieved are
very disappointing to Republicans
from the party standpoint, as they
feel they viii make it far more DIM
cult for them to win back the masses
OF the voters TO their support. The
people like party that does things.
and I was to this fact that the Re.
pubiicans owed their retention in
power for so many years Now that
the accomplishment OF the present
Democratic administration in the ten
months II has been in control OF the
government have so far exceeded the
record of the previous Republican
administrations, the Republicans re-
alize that only general and serious
BUSINESS depression can afford them
any hope of victory in next years
congressional and senatorial cleo
tons and in the Presidential election
in 1915.
Differences With House Bill.
Among the chief points of differ.
ence between house and senate are
the following:
The house provided for twelve re-
eional banks; the senate for from
eight TO twelve" discretion being left
to the federal reserve board.
The senate added a provision ere.
eting fund to guarantee the depos.
its of failed banks that are members
Of the reserve associations.
Tic house limited the rediscount
Of commercial paper at the regional
banks 10 that maturing in 30 days;
the senate provided that 1S0-day az
ricultural paper could be accepted
uader certain limitations.
The gold reserve required OF the
eEional reserve banks. against the
circulating notes, was placed at
SO 10 per cent by the house and at
30 per cent by the senate.
Banks would be permitted to loan
On fre-year farm mortgages by he
senate bill; on one-year mortgages by
the house bill
Senator LaFoIejie PROPOSED two
amendments The first provided that
mo United States senator or repre-
sentative in congress, shall be a mem
bel OF the federal reserve board.
director in federal reserve bank,
or an officer or director of any
member bank"
This amendment was adopted with
out roll call. The second amend,
ment provided that no member OF The
federal reserve board nor any oA;cer
or director Of a regional or member
bank should be director or officer of
any other bank. trust company, or in.
suranee company 1t was defeated, 81
to 30
The success OF the system depends
primarily upon the attitude of the
banks. This fact compelled the ad.
vocates of the bill to make conces-
sions at all points to the demands OF
bankers, the result being compro-
mise between the house bill and the
NEUTRALITY-SUSPICIOUS. draft
II the banks do not subscribe to
the capital of the new system, it will
mean the wreck of the national bank.
ing system, as well as the wreck of
The new reserve system II banks
do not subscribe, nattcnal banks viii
cease to exist, because they must
give up their charters. and the cur
rency bin will be merely paper
plan. This would mean a banking
system composed of $4,000 state
banks and trust companies. over
which the Federal government would
Lave no control whatever
Unless fortuitous circumstances
force an unusual demand for money