Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-05-30
WILSON REFUSES
i TO DRAFT A BILL
Tells Petitioning Democrats
That Others viii Have to
Draw Currency Measure.

WASHINGTON, May 30.-Demo-
cratic leaders in Congress interested
In currency reform have invited Pres
ident Woodrow Wilson to frame a
bill from the three drafts presented
by Senator Owen and Representative
Glass, heads of the two congressional
committees on banking and cur
rency, and Secretary McAdoo, of the
treasury department.
The President let 1t be known to-
day that while he considered the re-
quest q generous one he did not feel
competent to write a detailed meas
ure and would turn over the task
Of condensing the three bills to Sec
rotary McAdoo. indicating first his
approval of different sections in each.
Only Three Measures at Present.
The President said that these three
measures were the only ones before
him at present; that the professor
of political economy whom he had
previously referred TO as preparing
measure had finally submitted only
details as to certain features of bank
ing reform, and that the present OBJ
5ect of the currency conferences was
to reach common agreement on a
measure to be launched in Congress
within short time. There it will be
subjected, the President hopes, to the
fullest criticism by all parties. In
order that non-partisan measure
may be passed.
The central ideas of the three bills,
the President said, were the same.
without essential divergence as to
details. He gave no information as
to their contents, but it is known
that the measures would provide for
a system of regional reserve banks,
from ten to fifteen In number. These
institutions would be coordinate in
their powers, and, besides receiving
a portion of the reserves of banks
in their districts, would serve as
banks of discount for their members.
No attempt, it Is said, will be made
to establish a national rate of dis
count, but a method by which uni
formity of the discount rate within
respective regions might be obtained
is suggested in one of the bills.
Redistribution of Country's Reserves.
All three bills have proposals for the
redistribution of the country's re-
serves, each being aimed to prevent
concentration of reserves in one place.
The functions of the regional reserve
banks as outlined in the measures are
not the same in the different bills,
but there is a common idea of estab-
fishing a supervising national board,
consisting of cabinet members and
prominent bankers and business men
to exercise a general oversight over
the regional reserve banks, which
would act as fiscal agents for the gov
eminent.
With respect to elasticity of the
currency, there has been no definite
agreement as yet as to detail Two
of the measures are said to propose
that the regional reserve. banks be
given the power of note issue to be
backed UP by gold reserve and high
class commercial paper. but the third
is said to be in favor of govern
ment issue of notes.
To Eliminate Bond-secured Currency.
There is a well-defined intention
gradually to eliminate bond-secured
currency in the future. A system of
refunding through the substitution of
higher interest bearing bonds is con-
templated to make up for any depre- 4
citation in outstanding bonds. Branch
banking facilities abroad and plans
for the participation of State banks
in the regional reserve system are
provided for in the bills.
1t is expected that the Presidents
views on currency, which he will
transmit to Congress in a special
message, will be general in character,
pointing out defects in the present
system and suggestions for remedy,
but the bill that finally is agreed upon
by Senator Owen, Representative
Glass. Secretary McAdoo and the
President will contain the administra-
tons idea in detail of what Congress
should enact into law.