The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-14
RIVAL FACTIONS
WORK ALL DAY
CURRENCY BILL
No Obstacles Are to Be
Thrown in Way of
Report.
WILL DISSENT ON
VITAL QUESTIONS
On Matters of Mere Detail There
May Be Unanimous Expression
by Committee to Senate, and
Disputes of Fundamental
Importance Will Be
Carried to Floor.
Especial TO The Times-Dispatch. ]

Especial to The eTimes-Dispatch.l
| Washington, November 13.-Two
/ rival camps worked all day on currency
legislation. Six Democrats met in tho
! rooms OF Senator Hollis and applied
J themselves TO the reconstruction Of In
Vulnerable details. Five Republicans
and Senator Hitchcock occupied the
great room Of the Currency Committee
and remained until clock whipping
! their measure into final shape.
| Both factions are agreed that there
I shall be n report to Senate. No OBJ
staclcs are to be thrown in the way
1 The bill Will reach that body with dis
senting reports. however, for the ut
most strength OF the Democrats will
OGorman. Reed. Pomerene. Shafroth
and Hollis. y full meeting Of the com
mittee will be held on Saturday
i senator OGorman Tonight stated
l that In his judgment the currency bill
would not go to the Senate until next
J. Thursday. That Will be November 90
/ with but nine working days or the spe-
cial session remaining.
! The two factions In the committee
/ are irreconcilably split over the funda-
/ mental questions that are vital to tho
measure. On questions OF mere detail
there may be n unanimous report to
the Senate, and this will be the vehicle
In which tho measure will travel on
its way back from the committee into
the Senate.
I Agreed On by Democrats.
The six Democrats have agreed upon
i fundamentals that will include tho fol-
i lowing and which will be ncceptable
4 70 President Wilson:
! Eigth regional reserve banks
Capital stocks to be supplied the
| banks, and tho reserve banks to he
controlled by the banks.
Capital stock OF the regionaIs re-
5 ouced from 10|pers cent OF the combined
cent of the combined capital stock and
! surplus.
All reserves held by the reserve
! banks to be in gold.
Notes authorized to be Issued to be
! redeemed by the reserve banks either
In gold or lawful money, but ultimately
\ by the treasury In gold
The Secretary of the Treasury to be
the only public official retained as ar
eS-ofiicio member OF the Federal re-
serve board.
! The sections IN the House bill re-
lating to savings banks to be struck
| out.
! So many protests have been received
/ against tho action of the Democratic
members in providing that the notes
shall be redeemed by the reserve banks
! oltner In gold or lawful money that
| the statement was made after ad-
1ournment this afternoon that this
/ conclusion was only tentative and
/ might be changed.
Continues Gold Standard
| The proviso as agreed upon yes
! terday was held to be n matter OF
great convenience to the reserve banks,
| and he'd the advantage also Of ccntre-
| ing in the treasury ut Washington a
| greater amount of gold. The ultimate
redemption OF these notes In gold by
| the treasury, which is borrowed from
4 the German system. advocates or this
| plan say absolutely guarantees the
| continuance OF the gold standard, not
withstanding criticism that the policy
OF the government In this respect has
| beon weakened.
| The Democratic faction has cons!d-
cred forty-two pages OF the bill and
expects to finish the remaining thirty
fiVe Tomorrow. Among the chief mat
ters disposed of to-day were the pow
! ers of the Federal reserve board and
tho conditions under which State banks
and trust companies may come into the
system. Senator Reed, who has yield
! ed on n number of important uues-
.tions upon which he had nrm convlc-
tions, to-day told his associates he
would not sign the report unless the
Federal reserve board was given
greater power over the management
and control of the reserve banks than
| it would have under the pending meas
ure.
After a great deal OF discussion this
power was partially extended The
House bill provides for receivership
| for any regional reserve bank that did
not comply with the provisions OF the
| law. As amended to-day, the Federal
board. In addition to tho power con-
ferred to suspend a reserve bank, Is
given full authority to take such bank
| In charge and administer it's affairs
during tho period OF suspension. This
II was argued, would bo better both for
the government and the bank than the
settlement OF Its affairs through a re-
ceivershp.
Drnstic Method Provided.
| Under the administration bill, a d.
rector OF the reserve bank could only
be removed after {, hearing BY the Fed
ernl reserve board. A more direct and
drastic method has been provided The
Federal reserve board is given abso-
Lutte authority to remove any director
upon its own initiative. All that is
required Is that tho official removed
and tho head OF the bank shall be given
statement OF the reasons of the board
for such action. Vacancies 80 created
are to be filled IN the manner provided
In the pending bill.
This arbitrary power conferred upon
the Federal board the committee JUS
tilted on the ground that the govern
ment Is interested in the good man
agement Of the reserve bank on ac-
count OF It's own deposits and on ac-
count of the deposits OF the public.
This sweeping control OF tho Federal
board in the matter OF removal, they
said, will operate as a henlthful check
upon the Immediate management OF
tho reserve bank.
The Republicans will include in their
bill all tho amendments that had been