The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-15
NOTES
PAYABLE IN GOLD
IN RECAST BILL
Dem ocra tic Faction
Completes Work on
Currency.
REPORT TO-DAY TO
FULL COMMITTEE
Republicans Not Yet Ready to
Submit Their Measure-Unan-
imous Expression on Non
essentials May Be Sub
mitted-Renewed Talk
of Adjournment.
Especial to The I4mes-D,spa,ch.I

Washington November It-Secretary
Bryan has yielded in his demand that
the Federal reserve notes, to be Issued
under authority of the Administrations
currency law shall be redeemed either
Ia gold or lawful money.
The mos, important action by the
Democratic members Of the Senate
Currency Committee to-day was to re
cast this provision. AS 1t will be re-
ported TO the Senate in the admins
tration BILL these notes are to be made
legal tender and payable in gold either
AZ the reserve banks or the Treasury.
The reserve for these note Issues is q
gold requirement of 33 10 per cent;
the reserve for deposits, 33 l3 per
cent In either gold or lawful money.
The Federal reserve notes may be used
in The reserves held hy the member
banNs but not in the reserve OF the
regional hanks
The Democratic faction OF the com
mittee late this afternoon completed
work the bill and Will be prepared
10 submit II 10 the fun committee
when ii meets o-rnorrow. The Rcpub-
lican faction announced tonight that
il would be three four days before
il completes its labors. senator Hitch
cock Was chosen chairman Of the sec
In the rooms OF the regular committee,
from which the administration dissen-
tors boitcd when the committee finally
split.
An honest effort is TO be made by
the two factions to get together on
unanimous report on sections relating
TO details and nonesscntials. but there
will be two reports on the fundamen-
tails
Talk OF Adiournment.
Tonight there was revival or the
talk Of adjournment, Senator f,ern
expressing the opinion that an adjourn
ment OF the present session probably
would lie had on November %
The Democrats to-day reduced the
membership OF the Federal Reserve
Board to seven. including the Secretary
OF the Urea sury as AN X-oiiicio mem
Der The term of office has been ten
tatively fixed At six years The pend-
ing bill provides that there shall not
be more than one member OF the board
from the same regional district. and
that the President shall pay due heed
10 geographical divisions in making his
appointments. This has been elimi-
mated. Senator O'Gor,nan secured an
amendment requiring the President, in
making his selections 10 have due
gard 10 the financial. commercial and
geographical divisions of the country"
The Importance of this change OF YER
hiaEe ~ apparent.
Positive dental was made by Demo-
cratic members OF the committee of the
report that they intended 10 write Into
the bin an amendment fer the guaran-
tee OF national bank deposits. 1t was
stated that during the next session the
national banking laws were 10 he re-
vised and codined. anu that this sub
jcct would be given attention at that
time
OF, heir ScIN
adopted amendment providing that
every member bank, as matter Of
right. should he entitled To rediscount,
to the extent of it's capital stock, eligi
BILE paper being offered. No member
bank could redscount an amount
greater than it's capital stock. except
by paying an additional per cent on
the first amount. equaling addi
uonal 80 per cent OF Its capital stock,
and per cent additional interest on
the second so per cent In no case
would member bank be entitled to re-
discount in an amount more than twice
it's capital stock. without tho express
authority of the Federal Reserve Board.
TO Be Sold 10 Public.
General provisions regulating tho en-
trance OF new banks into the system.
stipulated that additional stock shall
DC issucl and allotted To an1 under
written by the banks. but sold TO the
public as far as possible. Tho Federal
Reserve 5card is given power 10 re
move any director OF q reserve bank
for cause. after serving notice and sus-
pending him during tho period Of trial.
The Republican members refuse to
contemplate the possibility OF any re
serve bank with the government back
of IL failing. Fer that reason they
have stricken from the bin all refer
cncc 10 receiver or the taking over of
the functions OF tho bank BY the Fed
eral board. The mere inclusion Of such
Il provision in the law. they hold. sug-
gcsts the possibility Of the failure of
the system.
Under the Republican plan. every
national bank Is required To decide
within six months after notice whether
II intends To enter the new system.
whether it comes into the system or
not. tho national banks will be re-
uuircd to undorwritc the stock and
take what the public does not. Banks
acting as reserve agents must make
their decision In ninety days as 10
whether or not they will enter the
system or cease TO he reserve agents.
An important amendment dealing
with the character OF paper for rcdis-
counts was adopted. SIX months paper
is to b. accepted. under certain re-
strictions. to givo tho advantages
largel I" the small country har;;s
No bank will be permitted to have
more than 80 per cent of its rcdiscounts
In paper of that class. and In no case
VIII any bank be allowed to re,lis-
count moro than 100000 OF this class
Of paper.
Tho Republicans expect 10 complete
tho first draft Of their measure within
tho neNt two days. Tho bin may not