The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1913-12-18
SENATE TO VOTE
scontinusd from mrs. Pare,


the Eve members of the senate banking
committee. With these out of the
way. Senator Owen will offer hi. bill
endorsed by the senate Democratic
caucus as the substitute for the
Glass bill that passed the house.
Republican senators joined Senator
Hitchcock to-day in a strong fight
against the provision OF the owen bin
limiting 20 ninety days the maturing
period or commercial paper that
might De re-discounted at the pro-
posed new regional reserve banks.
Senators Crawford OF South Dako-
Ia and McCumber OF North Dakota
declared II would make IL impossible
for country banks OF the west TO meet
an emergency; and that the mass OF
six months notes of farmers and
STOCK raisers would be yalueless in
Tune or a panic because they could
not be re-discounted.
Senator Shafroth replied that the
limitation against long term paper had
Deen settled upon solely to assure the
Federal reserve banks having paper
That would be liquid" and quickly con
Veruole into cash in time of stress
Revised Reserve Section.
Following the numerous attacks on
the note issue provision and reserve
requirements OF the bill by those who
contended the measure would open the
doors 70 imitation, the Democratic CON
Terence tonight revised the reserve
section. The required gold reserve
oehind the new circulating notes was
increased from 30 per cent, as pro-
vided in the Owen bill, TO 40 per cent.
"a nf I
OF the reserve down to 32Is per cent.
An attempt 10 fix an arbitrary limit on
the amount OF notes to be issued
failed.
Other amendments adopted provid-
ed for the use OF a part OF the sur
plus earnings OF the regional banks
for building up the gold reserve, for
an increase in the compensation of
the members OF the federal reserve
board for $4,000 TO 1000, as pro-
vided in the Hitchcock amendment.
and that all the member banks must
receive the proposed new notes al
par was approved.
The conference also decided to re-
model section eight OF the bill. pro-
viding for the entrance OF state banks
and trust companies 70 the new sys-
TEN. and voted I'm favor OF a pro-
vision whereby regional banks would
be required TO keep a fund intact in
the treasury TO provide for the re-
demption OF outstanding notes. All
or these changes. with several other
minor amendments. were referred to
the Democrats OF the banking com
mittee TO be framed in detail.
The conference adjourned when
the senate met at s o'clock. but will
resume consideration OF amendments
tomorrow evening.
Defends Amendment.
At tonight's session Senator Borah
OF Idaho made a lengthy argument ia
support OF an amendment which he
had proposed to the administration
bill providing that the notes issued
by the federal reserve banks be made
legal tender
IF you put the credit Of the gov
eminent OF the United States behind
this currency he said. why should
that credit not be extended TO the
man who wants 10 pay his debts as
well as 10 the man who wants to
gather In the great wealth Of the
country through speculation"
by a vote OF SO 10 81 the senate re-
jected an amendment proposed bv
Senator Hitchcock providing that re-
gional banks must extend TO member
banks as matter OF right redis-
counts up 20 the amount OF the mem
Der banks capital stock at the pre-
vailing discount rate and up 20 twice
the capital at increased rates. Sen
ator Norris voted with the Democrats
against the amendment Under the
Owen bill the granting OF rediscounts
10 member banks would be entirely
in the discretion OF the management
OF the regional banks.
Senator Hitchcock then proposed
an amendment to increase TO - per
cent the gold reserve against issues
OF the new federal reserve notes.
Christmas-Mrn's kIh GInu.. La