Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-19
EXPECT CURRENCY
LAW BY TUESDAY
Leaders Look for Passage of
Bill in the Senate
Tonight
MEASURE PRACTICALLY
SAME AS THAT OF HOUSE
In PhraseoIogy and Details
Upper Chamber Made Hun
dreds of Changes.

WASHINGTON, Dec. 19-Unless
Unforeseen obstacles are encountered
the new currency bill will pass the
Senate before it adjourns tonight.
Democratic leaders had the bill in
such a position at the closing mo-
ments of last nights session that they
might have passed 1t with an hour or
TWO more of debate. They were con-
fident of guiding the deliberations to-
day so that the long debated measure
would pass by a safe majority and go
to conference with the House, where,
with prompt action, leaders expect to
sec the new bill ready for President
wilson's signature by Tuesday at the
latest.
Most of the difference between the
two houses may be said to have been
largely ironed out in advance. Ma
iority Leader Underwood in the
House is authority for the statement
that only two or three serious points
of difference remain, and they are
not expected to prolong the confer
ence. One of the most important
points of difference concerns when the
new currency system shall go into
operation. The House bill proposed
that it become effective within three
months from the passage of the bill.
The Senate bill says "as soon as con-
venient'' Administration leaders be-
lieve the Senate provision will pre-
vail.
Expect system TO Work Smoothly.
AS one provision of the Senate bill
extends the Aldrich- Vreeland law to
operate during the transition period,
{ officials expect to see the new system
working very smoothly while reserves
are being shifted and conditions are
.changing to meet the new law. Sec
rotary McAdoo has announced that
+ the federal treasury will be ready
with its millions to help the transfor-
NATION in every way.
Settlement of the remaining details
was begun as soon as the Senate as
4 sembled. A combination of amend
ments by Senators Crawford, Owen
and Nelson broadened the section to
allow national banks to loan on five
year farm mortgages. The amend
ment would allow central reserve,
city and country banks to loan one
third of their time deposits or 20 per
cent of their capital and surplus on
such security. Senator Nelson sue
ceeded in getting into the bill pro-
vision that such banks may continue
to receive time deposits and pay in
terest on them, procedure at pres
ent a technical violation of the law.
The Democrats voted down a pro-
posal by Senator Crawford to prohibit
5nterlocking directorates in banks in
the new system.
A complete reform OF the vast and
Complicated machinery of finance,
banking and currency will be ac-
complished by the bill. It's funda-
mentals provide:
What Bill VIII Accomplish.
The issue of currency, guaranteed
by the government, based upon notes
and bills representing commercial
transactions and backed by a gold
reserve. The new currency is expect
ed to contract and expand to meet
fthe varied demands OF trade.
The concentration Of the bank re-
serves Of the country in regional in
stitutions capitalized by the banks of
The country and controlled by direc-
tors elected by the banks.
The creation of a market for the
negotiable commercial paper which
forms the bulk of the assets of the
banks, where, in times of stress
those assets may be easily and with
iout loss transformed into cash.
The establishment of from eight to
twelve great regional banks through
out the country, which will issue cur
rency, rediscount paper and central
ize and mobilize the reserves of the
local banks
The creation of Federal reserve
board of seven members appointed by
the President, with final powers of
control and supervision over the en-
tire system
Senate Made Hundreds Of Changes.
In the foregoing general principles
the bill is practically the same that
passed the House. But in phraseology