The Washington times., 1913-07-15
N 'ADOO PLAN STARTS
CURRENCY BILL ROW
Committee ReneWs WrangIe
Over Two Per Cent Bonds
Section of Measure.

While discord once more chased har-
rnony from its place at the committee
table, the Democratic members of the
House Committee on Banking and Cur
rency renewed their deliberations" to-
day over the Administration currency
hill. The majority members met at IL
o'clock to renew the wrangle where 1t
was dropped late yesterday, and II is
probable that practically the entire aft
ernoon will be spent on the so-called
- per cent bonds section of the bill.
> Secretary McAdoo's belated proposal
that the circulation privilege shall not
be taken from the per cent bonds
is the cause of the row which began
in committee late yesterday and con-
tinued today. In a statement issued
by Mr.. Glass he says "a division OF
opinion developed as to whether the
proposed amendment would reassure
the holders of these bonds, and also
whether the bill should contain any
refunding provision whatsoever.
The real trouble appears tobe a feel-
ing on the part Of several OF the In
-surgent members that while the House
Committee is presumed to be consider
ing the bill il is not proper that Secre-
tary McAdoo. Chairman Glass, and Sen,
ator Owen should hold conferences and
decide upon amendments.
AIueuQuQ6nl SldIlS 44Oupic-
The troublesome amendment in this
case applies to section 20, which was
considered out of turn in the conference.
This section originally provided for the
gradual retirement of the existing bank
note circulation and the accompanying
withdrawal of the circulation privilege
= from the per cent bonds, which We're
to be exchanged for per cents without
circulation privilege. The 2 per cent
bonds Immediately slumped to below par
in New York
All the recent conference, in which
Secretary McAdoo took a leading part,
notifications of section % were decided
upon It was proposed that SO long as
the per cents were outstanding they
should retain circulation privilege under
an amendment reading. But so long as
any of the said 2 per cent bonds bearing
the circulation privilege are outstanding
they shall be entitled to all the r.ghts
and privileges they now possess. TWen-
ty years Of grace would De given the
holders of these bonds.
When Chairman Glass presented the
amendment in committee the trouble
= started, and a three hours discussion
was fruitless. Mr.. Glass was in a pet
ulant frame of mind when he reluctant
--ly issued statement about the non
action of the committee.
Proposed Change In Section.
The proposed modification of section
% reads as follows:
Section 20 Upon application of any
holder of per cent bonds of the Uni
ted States, bearing the circulation
privilege. the Secretary OF the Treasury
shall exchange such bonds for per
cents bonds OF the United states, with
out the circulation privilege, payable
twenty years from date OF issue, and
exempt from Federal, State, and munic-
: tpal taxation both as TO income and
= principal But not more than per
cent OF such outstanding per cent
bonds shall be redeemed in any one
year. Every national bank may con-
tinue to apply for and receive from the
Comptroller OF the Currency circulating
notes under existing statutes and un-
der the conditions provided by this
act, but no national bank snail be
permitted TO issue circulating notes OI
any description or to issue or TO make
use OF any substitute Tor such ClrCula-
ting notes in the form OF clearing house
certificates, cashiers checks, or other
obligation not specifically provided Tor
under this act, and no national bank
shall, without consent OF the Secretary
of the Treasury, In any one year, pre-
sent per cent bonds for exchange in
the manner heTelnDeTore provided to an
amount exceeding per cent OT the to-
tai amount of bonds held or owned
by said bank. AT the expiration OF
twenty years from the passage OF this
act, every holder OF UnIed States
per cent bonds bearing The circulation
privilege, then outstanding shall receive
payment at par and accrued interest, or
at his option, shall receive in exchange
3 per cent bonds OF like denomination
payable twenty years from date of issue
and without the circulation privilege.
. But So long as any of the said per
cent bonds bearing the circulation
privilege are outstanding. they shall be
entitled TO all the rights and privileges
they now possess. Provided, however,
that after twenty years from the date
OF the passage ot this act national bank
notes still remaining outstanding shall
be recalled and redeemed by the Ma
tional Banking Association issuing tile
same within a period and under regula-
tions to be prescribed by the Federal
Reserve Board, and those still remain
ing in circulation at the end of such
period shall be secured by an equal |
amount Of lawful money deposited in |
the Treasury Of the United States by !
the banking association originally is
suing such notes.