The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-08-06
CURRENCY BILL COMPLETED,
WILL GO TO CAUCUS OF DEMO.
Gratis MONDAY AS ADMIN
ISTRATION MEASURE.
Insurgents, Beaten OH Their Amend.
ments Calling for Corn, Cotton and
Wheat for Basis OF Issue, Will Car
ry Fight TO the Floor.

Washington, Aug. 1.-Consideration
of the administration currency bill
virtually was concluded tonight by
Democrats of the house banking and
currency committee after more than
five weeks OF constant and stormy dis
cussion. The bill was ordered closed
and reported and Monday Democratic
committee members will take a for
NAL vote of recommending the meas
ure to the Democratic caucus. 1t will
go to the caucus with the disapproval
OF at least three members of the
committee, it was almost crtain to-
night.
AS closed tonight the bill differs
little in its essentials from the admin
istration measure framed by Repre-
sentative Glass, Chairman owen of
the senate committee and Secretary
McAdoo and approved by President
Wilson. Complete government control
Of the federal reserve board, which
will direct the new banking and cur
rency system, deemed by the presi-
dent the all-important factor of the
bill, was retained.
At the eleventh hour Democratic
members of the committee incor-
,porated an amendment providing for
an advisory board Of bankers TO lad
wise" the federal reserve board. This
amendment was in the nature of a
compromise with the banking inter-
ests, which protested vigorously
against the exclusively governmental
feature Of the control of the board.
Another important amendment in
corporated in the bill altered the
rediscount section comforting the
power to require federal reserve bcnks
/ mutually to rediscOunt paper. A
, change was made in the division Of the
earnings Of the federal reserve banks
created by law. Originally the banks
were allowed yearly cumulative div
idend Of 5 per cent and a surplus
equal to 20 per cent Of the paid in
capital stock. All earnings above
these amounts reverted to the govern
ment. AS amended the balance of
earnings after the per cent divi-
dend and the 20 per cent surplus
will be paid, GO per cent by the gov
ernment to be usced as a sinking fund
to reduce the national debt and 40 per
cent to be divided among the mem
ber banks in proportion to their bal
ances in the federal reserve bank, con-
cerned.
LIN the reserve section the COM
mittee reduced the period during
which n bank must hold 90 per
cent reserve against deposits from
2s months to GO days. As finally
passed the reserve section requires
that after a period Of gradual changes
the country banks must keep their
Is per cent reserves either in their
vaults or in the federal reserve bank
of the district in which they are To-
Gated.
BY n vote Of seven to five the con-
ference today struck from the bill
n provision previously ordered insert
ed fOrbidding interlOcking directOrates
between banks. 1t was stricken out
on representations that the president
believed it should be considered apart
fro general currency legislation.
The socalled insurgent amendments
to the bill, providing for currency on
warehouse receipts for cotton, corn
! and wheat, were voted down today
by a viva voce vote with little discus
4 sion. Representative Ragsdale of
| South Carolina and Representative
Henry of Texas will carry the fight
for these amendments to the floor OF
| the Democratic caucus.