Albuquerque morning journal., 1913-11-19
Both Democrats and Republic
ans Provide for Difficulties
Likely to Arise From Tran
SitiOn Period,
TO TRANSFER RESERVES
GRADUALLY IS PLAN
President Opposes Adjourn
ment of Congress Before
Regular Session Begins in
Order to Obtain Mileage,
~ aoasao louav.t srse,.l ls.sso wal

tuy Hossiso lousHAt SPECIAL tSsste wpRSl
Washington, Nov. Means Of
protecting the country against any
financial stringency when the pro-
posed now currency system goes into
effect We're considered today by both
the democratic and republican wings
of the senate banking and currency
committee
I'm each case, amendments to the
administration currency bill agreed
upon were designed TO cover the
transition period" while banks are
transferring their reserves 20 tho
proposed federal reserve banks. The
democrats adopted change that
would permit local banks TO deposit
half Of the required reserve I'm the
regional bank in the form of COM
mercial paper. instead OF requiring
the entire deposit to be in cash An
other amendment would authorize
the federal reserve board to make the
new treasury notes and the present
bank notes eligible for use as part of
the reserves. to relieve emharrass-
ment during the transition period
The republicans and Senator Hitch
cock. continuing their work on a
draft of the bin, adopted a moro rad
ical change, providing that banks
need deposit only per cent reserve
when the new system becomes ef-
fective, an additional ] per cent TO be
deposited each six months until the
entire reserve OF 9 per cent has been
p4ovided for.
The work os the two branches Of
the committee was not concluded to-
day and will be resumed tomorrow
The republican members sent their
draft TO the government printing Of
flee tonight. but viii revise it tomor-
row. The democratic caucus, 90 con
slider the administration bin probably
win not be settled upon until after the
steering committee, which met to-
day. has had another conference next
President Wilson let democratic
senators know in positive terms today
that he was opposed to the move
ment now under way TO secure an
Of congress for the week
prior to the opening of the regular
December session. lie told several
senators that the country would
charge congress with adiourning for
The purpose Of securing their mileage
allowance. While adjournment talk
continued today, It was believed to-
night that the special session would
run through and merge in the regu-
lar session, December ].
Changes made in the currency bill
by the democrats today were the re-
suit of figures presented by Chairman
owen, showing that the shifting of
he reserves in the bill as originally
Drawn would have taxed the reserve
IF the country.
The administration forces once
more reinstated the disputed lawful
provision. The clause pro-
iides that the new currency shall be
payable in gold at the treasury in
but shall be payable in
gold or lawful money at each re-
gonal bank In this connection. the
committee strengthened the gold re-
lempton fund requirements.
The illegal tender" quality of the
lew notes, provided for in the bill I
lfter lengthy discussion ana
'ather heated struggle, was stricken /
,ut again today The representation
If the banks in the directorate Of the .
'egional reserve bank was altered to
illow directors elected by the momber
)anks to be directors or officials of
,ther financial institutions.
Farm loans as an investment for
lational banks would be authorized .
n an amendment written into the re-
,ubllcan drafts Senator Hitchcoek
md the minority members amended
he bill to provide that national banks
nay invest one-thrd Of their time
deposits in fiye-year farm mortgages,
.ased on so per cent of the value Of
and mortgaged The republicans
truck out Of the house bill the re-
uirement that national banks must
ogregate the capital and assets be- I,
lind all funds held as savings ac- E
cunts. The bank examination sec
ion of the bin was revised, the COM L
nittee providing that bank examln- !
rs shall be placed on a salary Of
rom $4,000 to $1,000 a year thus
the fee system.