The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-06-21
SENATORS WILL
ANTAGONIZE BILL
Currency Committee is I'm
derstood to be Opposed to
The Immediate Passage
of the Measure and Will
Urge the President Not to
Demand Action at This
Session.
BY ASSOCIATED PRESS.

Washington. June 20.-Copferences
of the president with the currency
committees of both houses began to-
night. 1t is understood he desires to
learn what changes in the bill the crit
les will demand. Publication of the
measure by Chairman Glass had the
presidents approval and was made to
give members a chance to learn the
details of the currency reform plans.
The president saw members of the
house committee tonight and will meet
the senate committee Wednesday. Lat
ar he will discuss the bill with repub-
Ecan senators identified with the pre-
vious efforts at currency reform.
Senatorial antagonism to the con-
templated bill developed today. A
prominent member of the currency
committee has stated the immediate
passage of the measure is not favor
ed by the whole committee and the
president will be urged not to de-
mand action during the extra session.
The effort to prevent action has not
yet been organized. In guarded COM
ments the senators expressed the con-
viction that Senator Owens's provision
for retiring national bank notes and
refunding government bonds is unde-
sirable. Senator Nelson, republican
member of the finance committee, cali
ed the bill a temperory makeshift and
more cumbersome than the Vreeland
measure.
While it has been known for some
time that trainers ofs the measure
Secretary Mc&doo, Senator Owen, Rep
resehtative Glass and the president
contemplated a system of twelve reg
ional reserve banks in districts whose
areas were not necessarily geograph-
ically but followed the lines of trade
and domestic commerce, interest CEN
tered today in the powers of super
vision to be exercised by the federal
reserve board of nine members offer
the reserve banks.
Though originally it was planned to
give the banks representation on the
federal reserve board, it was argued
that the banks practically would have
the entire management of the federal
reserve banks and that placing the
board entirely in government control
a check on the operations of the re-
serve banks might be assured.
UNEMBARRASSING CHANGE.
The underlying idea of the bill in the
minds of the trainers has been to eff
change from the banking system by
using existing machinery. The bill is
expected to be the subject of liberal
amendment. Provision for retirement
OF two per cent bonds by which $780,,
000,0 900 of national bank notes now are
secured, so as to provide against de-
probation, will be one of the fore
most problems.
The provision for note issue the
administration hopes will not be
one OF the foremost problems
The provision for note issue the ad-
ministration hopes will not be
changed. 1t is said to be the result of !
a careful canvass not only of prom
inent bankers, but business men who
thought it practical and sound.
Operation of the plan is explained in
this way
Whenever a state or national bank |
desires to obtain currency. 1t applies |
first to the federal reserve bank in its |
region, accompanying with its appli-
cation a tender of collateral security.
The security thus offered must be |
notes and bills accepted for re-dis- |
count under rules laid down by the |
federal reserve board, which may issue |
up to 100000, 900 in notes. The fed /
eral reserve banks must hold 33 1-3 per |
cent in gold of the amount of notes /
advanced. The notes also become a |
first and paramount lien on all the |
assets of the federal reserve banks.
The element of elasticity is obtain
ed. according to administrat ton Off
cials. in levying interest charge on
the note issue. This rate is to be es-
tablished by the federal reserve board |
with due regard to the prevailing