Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-01
SUBSTITUTE FOR BILL
-
GIVEN SENATE TODAY
selntor Owen .offsssb bratecf
Currency Measure Agreed
Upon in Conference.

me urd1t OIL the currency bill COM
pleted by the democratic conference Of
the Senate late last night was offered in
the Senate today by Senator Owen as
substitute for the pending bill While
following in the main the draft of the
bill made by Senator Owen and five
other democrats Of the banking and cur
rency committee. it contains a number of
important changes.
The conference decided that if dis
puted points of Importance became ap-
parent In the course of debate on the
floor. each difference among democrats
as it arose would be taken in the con-
ference the party disagreements straight
ened out, and the majority united to act
on the floor.
The conference adopted the recom-
mendation for a plan to guarantee the
deposits of banks which enter the new
system. This would provide that after
the new regional banks have earned a
q per cent dividend on their stock and
established 40 per cent surplus, the ex-
cess earnings shall be divided half and
half. One part shall be devoted to a
guarantee fund and the other shall be
paid to the government as franchise
tax.
Members of Reserve Board.
The conference also adopted the sug-
gestjon of the committee that the fed
eral reserve board which will control the
new system should consist of the Secre-
tary of the Treasury and six other mem
bers to be appointed by the President.
The conference. with the exception of
writing in the provision for guarantee
of bank deposits. has made practically
81 oh m nj foa
bill presented by Senator Owen. and the
conference measure, 1t is practically cer-
tain. will be acceptable to President
Wilson.
The final decision of the conference
wrote into the bill new plan for re-
funding the per cent bonds, on which
the present bank note currency is based
The plan was evolved by Secretary NC
Adoo and provides for the retiring OF
so5 NN. 900 of the bonds each year. The
federal reserve banks would take over
that amount of the bonds, paying par ana
interest to the banks now holding them
Provision is made for the pro rata dis
tribution of the retirement among banks
which apply to have their bonds sold
The money paid for the bonds. would be
used to cancel the notes outstanding
against them. and the surplus paid to
the hanks whose bonds and notes were
retired.
Adopts administration Feature.
The plan adopts the feature proposed
by the administration members of
the Senate banking committee, which
would allow the reserve banks to ex-
change the bonds for one-year Treasury
notes. at :: per cent, which could be used
in foreign markets to purchase gold to
maintain the reserve. In addition, how
ever. the McAdoo plan would allow the
regional banks TO issue circulating
notes against the bonds. similar to the
present bank note currency.
MANY minor changes were written into
the bill before the conference finally &C
cepted it, An attempt to replace the
controller of the currency on the federal
reserve board failed. 1t was indicated
that President Wilson Is anxious to give
the controller a place on the board, and
the fight on this point may be carried
to the floor of the Senate.
The conference agreed to extend the
Aldrich- -Vreeland emergency currency
act, now in force, for one year. until
lime no 1915, to cover the period when
the banks will be shifting from the pres
ont to the new system.