The Washington herald., 1913-11-01

ate any number of regional reserves up
TO limit of forty-seven, or a number
equal to the reserve associations now IN
existence. When the vote was taken on
Senator Reeds proposed modification, II
failed, and then Senator O'Gorman came
forward with the proposal to authorize
the Federal board. after two years. to IN
crease the number to twelve. Two voted
against Ex-senator BrIstow and Senator
Mclean.
The action taken by the committee
on the regional reserve matter is Iar
from conclusive. II has been the pan
of the committee to ignore the CEN
tral bank proposal for the time being
and assume that the new currency plan
is to be based on the regional reserve
idea, and to perfect that plan accord
ing to the view OF the Senate commit
tee. This being accomplished. the issue
wNI come sauarely as to whether the
regional reserve plan thus perfected
shall be preferred TO the central bank
At the same time Senator Reeds pro
posal for forty-seven regional reserve
associations. with a cleartng-house
bank in Washington. under the abso-
lutte control of the Federal board, VIII
receive consideration.
Reed Explains Plan.
Senator Reed intimated after the
committee broke up yesterday that his
plan had been shelved by the votes
taken in the committee. But that was
not the view of the other members OF
the committee. Senator Reed made IL
clear that he does not regard his pro-
posal as a revival OF the central bank
idea. He insists that the suggestion
he made Thursday was not for CEN
tral bank. He pointed out that he
provided for a Clearinghouse in WASH
ington which should hold SO per cent
of the reserve-"metallc reserves" as
he described them-of the regional re-
serve banks, and to hold also a per-
centage OF the deposits of the regional
reserve banks yet to be agreed on by
the committee. The Senator did not fix
this percentage. The committee will
be in session today from 10 until s.
with a recess of an hour for lunch
Chairman owen was very optimistic
last night, and made tho prediction
that before the close of the session
today most OF the important features
OF the new banking bill will have been
agreed on. He admitted that the out
look in the committee was decidedly
favorable to the adoption of a motion
opening the subscriptions to the stock
of the reserve associations to the pub
lie. Chairman owen thinks It probable
tnaI the banks may De allowed 10 par
ticipate along with the general public.
Favor United States Control.
But there is decided opposition to this
plan, and It is known that Senator Brls-
tow OF Kansas has strong support in the
committee for a propoSal he has ad
vanced TO exclude the banks from par
ticipating in subscriptions for the stork
OF the reserve associations, probably eX-
Guiding all corporations as subscribers,
opening the subscriptions only to indi-
Vidual subscribers, and limiting the indi
vidual subscriptions TO $4,000. While there
was some discussion OF the question OF
the amount of capital stock OF the re-
serve associations, II will probably be
fixed at 800. 10000.
The majority of the committee is un-
willing apparently to allow the banks to
in the management Of the
regional branches that Il will be neces- |
sary to establish under the regional re- |
serve associations. The sentiment is m |
<-Sor of absolute government control, |
and FOR author1zins the EederTi ryesefNv I
Board to appoint the directors OF these |
branches of the regional reserves.
The committee agreed yesterday not to |
hold sessions Monday and Tuesday, in /
order that several members of the COM
mittee may go home and vote. Senator
Weeks left for Boston yesterday after
noon, and will not return until after cleo
ton. and Senators Hollis, PomeRne, and
OGorman will go tonight.