The Washington herald., 1913-10-31
REED PROPOSES
A COMPROMISE
CONTINUED FROM PAGE ONE.

the banks be admitted to participate in
subscriptions to the regional reserve
stock on equal terms, each element 70
have an equal voice in the management
OF the reserve associations, the banks be-
ing required to subscribe to 5 per cent
of the reserve stock. This plan retains
the compulsory feature as to the per
cent to be taken by the banks.
No progress was made by the commit
tee yesterday so far as completing any
further details Of the bill. The meeting
was cut short by the session OF the
Senate. and lasted only about an hour.
The afternoon session lasted from
o'clock until nearly 8 and all OF the
time OF both sessions was devoted to the
consideration Of the number Of regional
reserve banks to be authorized by the
bill.
In order to bring the matter before the
committee for action Senator Nelson
moved that the number of regional re-
serve banks be reduced from twelve. as
provided by the House bill, to three. SEN
ator O'Gorman moved as a substitute
that the number be reduced to five. After
considerable discussion II finally was
agreed to take the vote on an afiirma-
tive proposal for four regional banks.
Just before a vote was ordered on this
proposal Senator Reed sprung his COM
promise plan, and the committee dis
cussed that matter until the hour for
adjournment came. The indications are
that the committee will vote in favcr of
four regional reserve banks, but that
the action taken will be only tentative
Opposition of owen.
Disquieting reports came to the conn
mittee from the White House during the
day that the President would not ac-
cept a bill that carried a reduction of
any considerable number of the regional
Reserve banks authorized by the House
bill. 1t was said that the President had
made il clear to his friends that he
would look upon the reduction of the
number to as low as six as an invasion
Of one Of the fundamentals Of the bill:
This, was confirmed by the attitude OF
Chairman Owen. who stood but In the
committee for ten regional reserves.
II the committee adopts the suggestion
for four regional reserves II will be
with the idea that the reserve cities shall
be New York, Chicago, ST. Louis, and
San Francisco. II was said yesterday In
the committee that the large Southern
on the Democratic side
in the Senate and House would never
accept a regional reserve plan which so
OF the South.
No action was taken yesterday on the
resolution to eliminate the Secretary Of
the Treasury as an ex-ofiicio member or
the Federal reserve board. In the pres
ent temper OF the committee the Secre-
tary of the Treasury will be voted out
Of the reserve board just as the Secre-
tary Of Agriculture and the Comptroller
OF the Currency were
THE change ordered by the Senate
and Currency Committee in the
of the Federal reserve board
meets my objections to that phase OF the
BILL" said Senator Norris, Progressive
yesterday.
Senator Norris recently made a state
ment attacking at length the political
reserve board provided by the Glass
Owen bill. asserting that the Cabinet Of
fcers were included on the board for
political purposes only and that they
already have too many duties to be able
tn perform much OF the work OF the
Federal reserve board.
THE appointment of all the members
by the President viii tend. in my opinion.
tn avert the danger OF political power In
the board. expect to see the Senate
committee eliminate the Secretary Of
The Treasury as well as the Secretary
Of Agriculture and Comptroller Of the
Currency from the Federal reserve
ooard," said Mr. Norris.