Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-18
For Bigger Gold Reserve.

IVA LIBEL 0oAo xNCSCAsNs
The Hitchcock amendment proposing
to increase the gold reserve requirements
of the Owen bill from - per cent to As
per cent was under consideration when
the Senate began its worn. The demo-
Gratis in their conference last night had
agreed that as further measure of pro-
lection against the imitation which Sen
ator Root and other republicans had pre-
dicted would occur, they would recon-
| mend the increase OF the gold reserve
from 35 to 40 per cent. Ii was expected
| this change would be embodied in an
amendment to be offered by Senator
Owen, after the Hitchcock amendment
had been defeated.
The Hitchcock gold reserve amend
ment was finally tabled by a vote of AZ
| to 40 on the motion of Senator owen.
Rumors that the democratic man.
ayers had decided to drop from the
| dill the provision guaranteeing deposits
of member banks In the new system
were brought up in the Senate by Sem
ator Bristow. Senator Owen said there
was nothing in the rumor" that such
| a conclusion had been reached; but he
would not say whether or not the pro-
vision was to be retained in the BILL
SCOTS Midnight Conferences"
Senator Owen also said he knew moth
! ing Of midnight conferences" or other
secret conferences at the Treasury De-
partment or elsewhere. in which Secre-
| tary McAdoo, House leaders and others
were said to be revising the currency
| bill and preparing the conference report
of House and Senate.
Another amendment by Senator Hitch
cock to increase from S3.Oo0O0o to
| 81, O00, 600 the capital required for each
regional reserve bank was tabled. 4S to 40.
Another modification OF the BILL to
permit clearing house associations TO con-
tinue their present systems of bank ex-
animation and report, was agreed upon.
Protests from clearing house associations
in Los Angeles, Atlanta, Cincinnati. Co.
lumbus and other cities saying the USE
fitness Of the associations would De de-
stroyed under the restrictions of the bill
caused the change.
Secretary Daniels speech in New York
| last night, In which he said the latest
exhibition of hysteria Is the effort to
| prevent the passage of the currency
OIL" brought a reply today from Senator
| Sherman Of Illinois.
Improvement Alone Sought.
THE answer to that statement" he
| told the Senate, is that the House bill
as it came back to the Senate has been
vastly improved by those who are re-
sponsible for legislation by virtue of
holding party power. 1t contains fea-
lures that its own authors VIII admit
make very substantial Improvement.
There has been no effort here to de-
Law the passage of the bill. Our deliber-
atoms have not been for the purpose OF
preventing currency legislation, but Tor
the express purpose of improving cur
rency legislation. II this be hysterla,
then we can well stand more of SUCH
hysteria.'
Reserve Section Revised.
Following the numerous attacks on the
note-issue provision and the reserve re-
quirements OF the bill by those who con-
tended the measure would open the doors
i to imitation, the democratic conference
Last night revised the reserve section. The
required gold reserve behind the new cir
culating notes was increased from 81 per
cent, as provided in the Owen bill, to 40
per cent with a tax of l per cent on de-
pletion of the reserve down to 32i2 per
cent. An attempt to fix an arbitrary
limit on the amount OF notes to be issued
failed.
Other amendments adopted provided for
the use of a part of the surplus earnings
of the regional banks for building up the
gold reserve. for an increase in the com
pensation Of the members Of the federal
reserve board from $4,000 to $4,000. as
provided In the Hitchcock amendment.
and that all the MEMBER OdnkS must re-
ceive the proposed new notes at par was
approved.
The conference also decided to remodel
section eight of the bill, providing for the
entrance of state banks and trust COM
panies into the new system. and voted in
favor of a provision whereby regional
banks would he required to keep fund
intact i'm the Treasury to provide for the
redemption of outstanding notes.
Changes to Be Framed in Detail.
All of these changes. with several other
minor amendments. were referred to the
democrats of the banking committee to be
framed in detail The conference took no
action on the guarantee of deposits pro-
vision of the bill
The conference considered but did not
act finally upon point involved In one Of
the Hitchcock amendments defeated on
the floor of the Senate today. This would
allow regional banks TO rediscount FOR
member banks a specified percentage of
six months commercial paper to accommo
date banks in the country districts of the
middle west Under the Owen bill only
paper maturing within ninety days would
be eligible for rediscount.
The conference adjourned when the Sen
ate met at o'clock, but Will resume con-
sideration of amendments tonight.