The Birmingham age-herald., 1913-08-26
CAUCUS ADOPTS
AMENDMENT TO
CURRENCY BILL
Agricultural Products to Be
Put on Same Basis as
Commercial Paper
for Banking

Washington, August 25.-An agrieul-
tural currency amendment to the ad-
ministration currency bill was adopted
by the House democratic caucus today.
After several preliminary skirmishes.
in which other amendments We're beat
en-, the caucus without a dissenting
vote adopted an amendment, sponsored
both by the "insurgent" contingent, and
banking and currency committee, to put
paper based on agricultural products
on the same basis as commercial paper
for banking purposes
1t also would extend the maturity of
notes and bills admitted to discount un-
der the amendment to 80, instead of the
originally proposed As days. This ac-
tion disposed of the last of the big
controversial issues In the administra-
tion currency bill.
The amendment, the result of many
conferences and concurred in by ad-
ministration leaders and those unsuc-
cessfully seeking other amendments,
reads:
Upon the Endorsement of any men,
Der of any bank any federal reserve
bank may discount notes and bills of
exchange arising out of commercial
transactions, that is, notes and bills of
exchange issued or drawn for agrieul-
tural. industrial or commercial pur-
poses or the proceeds of which have
been used or may be used for such pur-
poses, the federal reserve board to have
the right to determine or define the
character of the paper thus eligible for
discount within the meaning of this
act, But such definition shall not in
clude notes or bills issued or drawn
for the purpose of carrying or trading
in stocks, bonds or other investment
securities, nor shall anything herein
contained be construed to prohibit such
notes and bills of exchange. secured by
staple agricultural products or other
goods, wares, or merchandise from be-
ing eligible for such discount.
Notes and bills admitted to discount
under the terms of this paragraph
must have maturity of not more than
so days"
Won Contention
we have won all we contended for"
was the comment of Representative
Neeley of Kansas, In charge of the op-
position to the bill. "The Glass amend
ment." adder Representative Henry of
Texas, comes practically to the amend
ment | have advocated during the last
three months"
"rhe rediscount section as thus
amended replied Chairman Glass,
does not comprehend a single one OF
the wild and absurd suggestions which
had been proposed. Mr. Henry sur
was beaten. He jumped after the boat
left the wharf"
Other members OF the committee made
similar statements. Chairman Glass said
tonight that the amendment did not
discriminate either for or against the
farmer that the New England shoe
manufacturer or clothing maker could
present their goods for discount as
much as the farmers could not and in
the final analysis the whole thing is
left TO the federal reserve board and
the regional reserve bank which is dis
eliminating.
During the days session the caucus
defeated an amendment by Represen-
tatlNe Wingo of Arkansas. to exclude
from rediscounting at federal reserve
banks notes or bills intended for deal
ing in futures of for marginal trading
ON agricultural products. Representa-
tive Gray of Indiana, in the principal
speech of. the day Intellectually sought
TO divide the federal reserve districts
into four geographical zones.