Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-12-01
Measure as Finally Agreed to
in Conference Has Feature
of Oklahoma Bank Law In
Corporated,
FEW CHANGES MADE
IN ORIGINAL DRAFT
Majority Party Plans to Garry
Legislation Through Senate
in Form Acceptable to Pres
ident,
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Washington. Nov. 3Q.-Determined
90 have the administration currency
bin ready for consideration by the
senate as democratic party measure
when the new session Of congress
opens tomorrow the senate confer
cncc OF democrats worked late to-
night settling the disputed details OF
the bill As finally agreed upon. the
measure was little different from the
draft presented 70 the senate by
Chairman owen and the five other
administration democrats Of the
banking and currency committee. The
conference decided, however, that n
disputed points OF importance became
appareld>iT the course OF debate on
the floor, each difference among
democrats, as it arose. would be made
the subject Of conference, the party
disagreements siralghtened out, and
the majority thereby united TO act on
the floor
The administration members Of the
banking ana currency committee re-
ported TO the conference tonight on
practically an of the disputed propo-
sltions In the bill The conference
adopted the recommendation for a
plan to guarantee the deposits of
banks which enter the new system.
This would provide. after the new
regional banks have earned a 6 per
cent dividend on their stock and es-
tablished 40 per cent surplus the
excess earnings shall be divided half
and half one part shall be devoted
to guarantee fund and the other
shall be paid to the government as a
franchise tax"
The conference also adopted the
suggestion OF the committee that the
federal reserve board, which will con-
troll the new system, should consist
Of the secretary Of the treasury and
six members to be appointed by the
president An attempt may be made
to place the comptroller OF the cur
rency on the board.
The conference, with tine exception
Of writing In the provision for guar
antee Of bank deposits, has made
practically no material change In the
draft OF the bin presented by senator
owen. and the conference measure,
IL is practically certain, win be ac-
ceptable TO President Wilson.
The conferences. Just before mid
night wrote into the bin new plan
for refunding the two per cent bonds
on which the present bank note cur
rency is based The plan was evolved
by Secretary MeAdoo and provides for
the retirement Of S25,00000O Of the
bonds each year The federal reserve
banks would take over that amount
of the bonds, paying par and interest
to the banks now holding them.
Provision Is made for che pro rata
OF the retirement among
banks which apply TO have their
bonds sold The money paid for the
bonds would bc used to cancel the
notes outstanding against them and
the surplus paid to the banks whose
bonds ana notes were retired
The plan adopts the feature pro-
posed by the outi-admnistration
Of the senate banking com
which would allow the re-
serve banks to exchange the bonds
for one-ycar treasury notes at 3 per
cent, which could be used in foreign
markets to purchase gold 70 maintain
he reserve In addition, however,
he McAdoo plan would allow the
regional banks to issue circulating
lotes against the bonds, similar 20
he present bank notes currency
Many minor changes were written into
he bills before the conference ac-
'epted IT, An attempt to replace the
Of the currency on the
oderal reserve board failed 1t was
indicated that Presideet Wilson ,s
nxous TO give the comptroller q
lace ON the board ana the fight on
his point may be carried to the floor
4 the senate.
The conference agreed to extend the
,ldrich -Yreeland emergency cur
ency act, now in force, until June So
9l5, to cover the period when the
anks VIII be shifting from the pres
mt to The new system
Senator owen viii offer the COM
loted bin ON the floor of the sem
te tomorrow as a substitute for the
in reported by the anti-adminlstra-
ion wing of the banking committee.