The Oskaloosa herald., 1913-09-11
MONEY MEASURE IS
REPORTED TO HOUSE
Glass Presents Report Signed by
Democratic Body.
REPUBLICANS HIT PORTION
Minority Members of Committee File
Statement Condemnins Three Of
the Main Features Of the
Currency Act.

Washington, Sept 10--The Glass
currency reform bill was formally re.
ported to the house, Chairman Glass
presenting report signed by al
the Democratic members of the house
banking and currency committee. in
which 1t was claimed that the funda.
mental features of the bill are:
Creation OF a joint mechanism for
the extension Of credit to banks which
possess sound assets and which de-
sire to liQuidate them to meet legit-
innate industrial, commercial and agri-
cultural demands; ultimate retirement
of the present bond-secured currency
with the substitution therefor Of a
more flexible medium of exchange,
and provision for the extension OF
American banking facilities for for
eign countries.
Republicans Condemn a Portion.
Coincident with the presentation OF
this report, report was presented on
behalf of the Republican members OF
the committee condemning three OF
the leading features of the bill. The
minority members claimed that the
powers conferred by the bill upon the
federal reserve board were too great
and there was extreme danger that
the board would be used for corrupt
partisan purposes.
The majority report predicts that
the IL federal reserve banks pprovid
ed for by the bill will have joint re
sources Of about s950,OO0,000 with
which to begin business. OF this
amount compulsory subscriptions oil
stock from the capital stock OF over
1000 national banks will be 100000.
900. Transfer of government deposits
in federal repositories to the federal
reserve banks it is estimated will be
$l33,000,000. From this statement II
is deducted that the federal reserve
banks will start business with cash re
sources of about $500, 1000. The re
naming $250,000,000 would be made
up OF reserves which under the terms
OF the bill would be transferred to the
vaults of the reserve banks. The ma
jority members admit that 1T can,
not be predicted confidently how
many state banks would apply or be
granted admission to the new system .
Bank Reserves Are Inadequate.
The majority report discusses the
inadequacy of the present disposition
OF bank reserves to provide liquid re
sources for the business of the coun
try and declares the only way OF soly
ing the problem Is by placing the re
serves in duly qualified institution
which shall act primarily in the pub
lie interest"
The transfer OF reserves from the
banks to the federal reserve banks
can be accomplished, according to the
Democratic members of the commit
tee, without embarrassing any finan
cial interests, but on the contrary
win have the beneficial effect of per
hitting the banks to develop Longer
lines of useful credit
The provision in the bill providing
for the retirement of government two
per cent. bonds, which have the circu
lation privilege, and exchanging fol
three per cent. bonds without the cir
culation privilege, is declared to b,
an excellent business policy for tn,
government"
The circulation privilege the repor
declares Is worth at least one pc
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