The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-01
REDUCE NUMBER
OF RESERVE BANKS
Senate Committee Tentatively
Agrees Upon -Four to
Start With.
INCREASE AFTER TWO YEARS
President Wilson Looks With
Disfavor on Radical Amend
mcnt to Bill.
INCREASE AFTER TWO YEARS

Washington, October 31.--The senate
Banking and Currency Committee to
night tentatively agreed upcn four re-
gional reserve banks for the proposed
new currency system. with proviso
that after two years the Federal Re
serve Board may add az many addi- :
tional banks as IL deems necessary, not
exceeding twelve. The pending bill
ilxcs the number at twelve. and it has
been understood that the admiuistra-
tion would not consent to lave it re-
duccd below nine.
The sharp reduction in tho number
OF reserve banks was thc first radical
amendment the committee has agreed
upon. and IL was earnestly opposed by
administration supporters In the com
mttee. Senator'S Reed and Hitchcock
however, voted with tho Republicans
for the reduction, leaving but five Dem
| ocrats-Owen. Pomercne. Hollis Reed
and Shafroth-behind tho admnistra-
tion proposal
The committee still has pending the
proposal to abandon entirely the ad-
ministration regional plan and to create
ii controlled central bank.
There also is pending Senator Reeds
proposal that tho unification of the
regional banks be accomplished by the
creation OF government clearing
house. which would act as a reserve
reservoir.
No Decision Reached.
Tho question Of the capitaliZat ton
and stock ownership OF the proposed
regional banks was taken up imme-
diately after the arrangement was ten
tatirely fixed, but no decision was
reached. Chairman owen. aftor the
committee adjourned. expressed the
opinion that the bill would be amended
To eliminate the administration pro-
vision. under which banks would be
forced to subscribe the capital of the
regional banks. The stock. he said.
probably would bs thrown open to
public subscription.
Stockholders would have no voice
In tho management Of the banks, he
said. which would be entrusted In a
board of directors to be appointed By
the Federal Reserve Board. thus ensur-
Ing comE'.,A government control of
the new system. The total capitaiiza-
tion OF The four regional banks, Sena :
tor owen said. probably would amount
to 500, 100000.
The administration supporters CON
tested every step In tho reduction OF
the number OF ;cgional banks. Two
of them voted 10 retain the number nj
twelve. and three voted for ten banks.
The proposal to iiX the number III eight
was defeated. TO >. and by the same
vote the number was fixed at four.
The proposition to insert tho proviso
that the Federal Reserve Board might
Increase the nuGibcr after two y.ara.
up to twelve. was voted into tho bin
with only two meinbers opposing it.
The committee hopes TO settle tho
ownership ana control OF the regional
banks tomorrow. and 1t is expected
that with this matter disposed OF, the
serious questions in dispute will ba
speedily adjusted
Wili Take Recess To-day.
Tomorrow tho committee viii re-
cess TO allow various mombcrs To go
to their homSs fcr tho elections. con
sideratioa Of Shc bin sciug over ,ntil
"Wednesday.
President WiiSon. II became known
tonight. looks with disfavor on the
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