Arizona republican., 1913-08-26
House Democratic Caucus, After Several PrcIim- mary Skirmishes With out Dissenting Vote, Adopts Change.
PRODUCTS EQUAL
 TO COMMERCIALS
Puts Paper Based on Agri- cultural Products On the Same Basis As That of Commercial Paper for Banking Purposes.
ASSOCIATED PRESS prsPATCH1

ASSOCIATED PRESS DIePATCH1 WASHINGToN, Aug. 25.-The az ricultural currency amendment to the administration currency bill was adopted by the house democratic caucus today After several preIim- mary skrmishes in which other amendments were beaten the caucus without a dissenting vote adopted the amendment which was sponsored both by the 'insurgent" contingent and the banking and currency com mittee to put paper based on agricul- tural products on the same basis as commercial paper for banking pur- poses. It also would extend maturity notes and bills admitted to discount under the amendment to ninety days instead of the originally proposed for ty-five days.
 The amendment was concurred in by the administration leaders and reads:
 Upon the endorsement of any members of a bank any federal re serve bank may discount notes or bills of exchange arising out of com merciaI transactions that~ is notes and bills of exchange issued CT drawn for agricultural, industrial or commercial purposes or proceeds of which have been used may be used for such purposes by the federal re- serve board which has the right to determine or define the character of paper thus eligible to discount within the meaning of the act. But such q. definition shall not mclude notes or bills issued or drawn for the purpose of carrying or trading in stocks. bonds. or other investment securities nor shall anything herein contained be construed to prohibit such notes bills of exchange secured by staple agricultural products or others of goods, wares or merchandise from being eligible to such discount"
 Notes and bills admitted to dis count under the terms of this para graph must have maturity in not more than ninety days
 We won all we contended for was the comment of Representative Medley of Kansas in charge of the opposition bill "The Glass amend ment'' added Representative Henry of Texas comes practically to the amendment that I advocated"
 "The re-discount section as thus amended" replied Chairman Glass docs not comprehend q single one of the wild and absurd suggestions that had been proposed and Henry
 
 cause he was beaten" Other mem bers of the committee made similar statements Chairman Glass said to- night that the amendment does not discriminate either for or against the farmers, New England shoe manufac- turers or clothing makers present their goods for discount much the farmers could and in the final analy- sis the whole thing is left to the federal reserve board of the regional reserve bank which does the dis counting"
 Representative Gray of Indiana, in the principal speech of the day in i effectuaIly sought to divide the feder- : al reserve districts into four geo graphical divisions.
 Secretary McAdoo issued tonight the | following statement concerning his recent conference with George M. 1 Reynolds of Chicago at New York 1 My attention has been called to the i following statement attributed to Rey- 1 holds:
 "T spent yesterday with Secretary McAdoo in New York and we talked ! about the bill and our objections to !! it, he assured me the administration | desired to do all in it's power to- l ward remedying the defects of which i we cOmplained.'
 T don't believe MT. Reynolds made ! this statement. What I said to him | in our conference in New York any 1 constructive suggestions or criticism | submitted by the bankers in refer | ence to the currency legislation | would I am sure be carefully con- | sidered by the committees in con | gross and the president if submitted l to them Any statement or inference 1 that I made a promise to the bank ! CTS or any one else in respect to i the currency legislation is unfound- | ed"
 It was intimated in administration circles that some modification of the i reserve features in the pending cur | rency bill might be made on sugges- | tion from the bankers.