Arizona republican., 1913-12-23
The Administration Measure Has Only to Go to Senate for Brief Consideration and Will Likely Become Law Before Evening
CHEERS GREET
 REPORTS ADOPTION
General Plan of Measure, the Democrats Say, is to
 Strengthen Financial In
 stitutions of Country and Give Help in Time of Need
ASSOCIATED PRESS D1sPArcHl

ASSOCIATED PkESS p4SFAENh4
 WASHINGTON, December 22.-The house passed the conference report on the administration currency bill at 1O:40 o'clock tonight by a vote of 298 to 60, and sent the report to the senate. which had waited in session 10 receive it before adjournment for the night.
 Prolonged and uproarious cheers from the democrats greeted the an nouncement of the vote by Speaker Clark, and many members of the house hastened over to the senate to see the report received there.
 Earlier in the evening the senate had agreed to vote not later than 2:3O o'clock tomorrow afternoon and the leaders regarded it as certain that the completed bill will be in the hands of the president for his sig nature before tomorrow night.
 On the final vote thirty-four repub- licans, eleven progressives and one independent, Kent of California, voted with the majority for the report, and two democrats. Galloway of Texas. and Witherspoon of Mississippi, joined the opposition. The vote followed q debate of nearly three hours, dur ing which the galleries remained
 
 many prominent figures in official life
 The house adjourned until 2:30 o'clock tomorrow. when the leaders hope to put through a joint resO- luton for a recess until January F.
 Senator owen announced that a separate bill to provide for a guar anty of bank deposits will be con sidered in the near future. This had been intimated in the debate by Chairman Glass of the house banking committed
 The following summary is given of the bill as whole with it's principal details. Generally speaking the first steps that will b. taken to bring into operation the nations new financial system will be through the organization of committee consisting of the sec retary of the treasury. the secretary of agriculture and the comptroller of the currency. Banks will have sixty days to file their applications for member ship in the new system. One year is allowed before the government will compell the dissolution of any national bank that refuses to join.
 The new law will make little dTect change in the operation of the present national banks. except to allow them to loan a certain amount of their funds on farm mortgages. It's chief purpose is to add a new piece of machinery to the banking system which will take up the slack during the changing busi- ness conditions each year; that will give the banks a place to quickly con vert their assets into cash in time Of need and retire it when money be- comes cheap. The basis principle Of the new law is to get reserves which the national banks are now required to maintain, out into circulation when necessary, without lessening the safety of any bank and to provide a place to which banks may rush in time of need to get cash for the prime commercial paper they hold in their vaults. This is accomplished through a chain Of regional reserve banks or reservoirs of reserve" in which all banks shall de- posit stated part of the money they are required to hold as a reserve.
 Under the new system when a finan- cial furry comes the banks can take commercial paper and such notes, drafts and bills of exchange to these reservoirs and secure to use their own reserve and even the reserves of other banks by depositing this security.
 A new form of paper currency is also provided for to come out in casc of
 (Contfnued on Page Twol