The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-12-22
C0NFEREES AGREE.

UUV1EnEf0 AUnEEs
CONTINUED from Page ona1
mittee which labored until dawn this |
morning threshing out the differences |
between the two houses. presented
perfected measure. which followed
closely the line laid down by President |
Wilson. in his demands for currency
reform. A general desire among 1egis- |
lators to get away from Washington
for the Christmas holidays, resulted in
a program calculated by Democratic
leaders, to place the bill before the
president for his signature tonight and
to clear the way for an immediate re-
cess.
In the house procedure called for the
setting aside Of rules, in order that the
conference report might not be forced
to lay over for a day to be printed. In
the senate the leaders endeavored to
smooth away the obstacles. chief of
which was an incipient protest by the
supporters of the provision for an in
surance of bank deposits which was
stricken out of the bill in conference.
The conference agreed pa practically
all Of the fundamentalap f the measure
as 1t passed the senate. Including the
provision that not less than eight nor
more than twelve regional banks should
be created. The resefte requirements
for banks entering the system, which
had been slightly let down by the senate.
were strengthened in conference an
amendment allowing the use Of the
present bank notes and the proposed
new federal reserve notes in bank re-
serves being stricken out. In order to
make the change the house conferees
called in Representative Buckley Of
Ohio, q member Of the house banking
committee. who made an extended ar
gument to show that the provision was
unnecessary.
The Final struggle.
The last long drawn out struggle of
the conference resulted from the adj
ministration's determination that the
comptroller of currency should be given
a place on the federal reserve board,
which will control the new system The
senate cOnfereeS were evenly divided on
this proposition. three senators join
ing with the house members Of the
committee in supporting the admins
tration's contention. It was nearly
daylight when q single shifting vote
brought the conference to a close.
The conference accepted the senate
amendment increasing the gold reserve
behind the new notes to be issued from
So 1-3 per cent. as fixed in the house
bill to 40 per cent, with a graduated
tax on depletion, as arranged in the
senate. 1t was understood that Presi-
dent Wilson and Secretary Of the
Treasury McAdoo. let the conference
know that they favored the increase.
A compromise plan for retiring the 2
per cent. bonds, on which the present
currency is based, was written into the
bill by the conference. Under the plan,
$S6, 00c. 600 worth Of bonds will be pur-
after the system is placed in operation.
Oy the new regional banks, from the
present national banks. On One-han
OF its holdings each regional bank may
issue currency. The remainder will be
refunded in per cent. thirty years
bonds or per cent. one year treasury
notes which the banks must agree to
renew each year. for thirty years.
Another senate amendment that
was crushed out in the conference
was the proposal to guarantee bank
deposits.
Seattle Wants Regional Bank.
Under the conference agreement,
cities where regional reserve banks
, are to be located will be- selected by
the secretary Of the treasury, the Sec
rotary of agriculture a--d the comp
troller of the currency. When tele-.
grams favoring Seattle were present.
ed to the senate today by Senator
Poindexter. Senator Burton declared
that the organization committee
should be left entirely free from out
side influences. in determining where
the new banks were to be located. II
1t were practical, he declared. con-
gress should pass resolution that no
senator or representative should use
his influence with the organization
committee.
Leave Alaska Out Of System.
The conference agreed to leave
Alaska out of the new system. The
new provision for the refunding Of the
government per cent bonds and the
retirement of the present national