The Birmingham age-herald., 1913-04-23
CURRENCY REFORM
is TAKEN UP BY THE
SENATE COMMITTEE
(Continued from Page one)

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which would act as fiscal agents fol-
the government receiving deposits OF
public moneys acting as banks of dis
count for the banks in their respective
regions and receiving a part of the re-
serve Of the banks of the country. Cur.
gional reserve banks. Practically al
the capital stock of these institutions
as well as other appurtenances would
be the property of the banks.
2. A governing board TO supervise the
regional reserve banks would be estab-
lished to consist of the Secretary oi
the Treasury, the Secretary of Agricul.
ture and the Comptroller of the Cur
rency as ex officio members; four di-
rectors chosen by the banks of the
country and two directors appointed
by the President of the United States
Elastic Currency
3. The elasticity of the CURRENCY
would be provided for by conditions
calculated to prevent initiation. Any
notes issued would be redeemable In
gold by providing a reserve for actuaI
gold redemption. There has been some
question as to whether these notes
should be United States notes advanced
10 the banks upon an interest charge
high enough to prevent initiation o,
be national bank notes under like con.
ditions. State banks would be required
to increase their reserves.
4. The extent to which the reserve,
could be used has not been determin &c
but one plan is in favor of permittins
their use under a reasonable tax. Witt
respect to the rate of discount it has
been variously suggested that the gov
erning board might require the rate tC
be made progressive when there wa.
an increasing demand for currency Sc
as to stiffen the open market rate ant
attract gold somewhat after the sys.
tenn used by the Bank of England
Bond Secured Currency
8. One of the plans suggested and
which Representative Glass advocated
in a recent speech was to retire the
present bond secured currency, not al
once. but over period of 10 to Il
years, which might involve a refundiug
of the 2 per cent bonds with the cir.
culation privilege into per cent bonds
without the circulation privilege A.
the bond secured currency would be re-
tired, substitute currency based OF
commercial paper of qualified clas.
would automatically take it's place Tc
oppose this automatic adjustment th<
rency reform declare the completed
changes will be neither radical MOI
abrupt. They declare 1t will merely
perfect the present machinery and facil
tiles OF the country's banking system
The plan that will be finally evolved the,
assert also Will be substantially diff.
ferent from the so-called Aldrich pan
There is talk of establishing branch
banks abroad to obtain for American
bankers share Of fba forafop ~
end commercial transactions.
With respect to the subject of guar.
anteeing bank deposits, however the
currency advocates are practically
unanimous that this should be KEEP
separate from any currency bill and
that IL attempted at all il should bs
taken up after the monetary reform i.
IN actual operation when bank er:
themselves might determine whether
they wished to establish an insurance
fund, possibly coming from the earn
ings of regional reserve institutions.