The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-05-06
APPROVE CURRENCY BILL.
DEMOCRATS IN CAUCUS SANCTION
MEASURE BY VOTE OF
10 TO o.
Majority Adopts Resolution Binding
Its Members to Support Measure
Without Amendment Except Such
~ Committee May Present

approved by the house Democratic
caucus tonight, by a vote of 163 to 9.
The nine dissentors were Representa-
tives Henry, Eagle and Galloway of
Texas. Hardwick of Georgia, Lobeck
Of Nebraska. Buchanan and Fowler of
Illinois, Nicely Of Kansas and Sisson of
Mississippi. After agreeing to the bill,
the caucus adopted a resolution by an
almost unanimous vote. declaring the
Dill TO be party measure and that
members OF this caucus are pledged
for the bill to its final passage with
out amendment: Provided, however
she banking and currency committee
may OFFER amendments in the house"
The feature OF today's session was
the adoption of a committee amend
msnt as a substitute for the section on
bank reserves. which In effect simply
served to clarity the section as orig
inally drawn.
The measure will be reintroduced
In the house tomorrow by Chairman
Glass and referred Immediately to the
banking and currency committee,
which will meet Tuesday.
II Is expected the bill at once will
ba reported back to the house, which
Mr.. Glass tonight predicted would
pass II within ten days
hA
adoption by the caucus. is thus
summed up by Chairman Glass, who
piioted II through the caucus.
There has not been written into
the bill from one end to the other a
Angle sentence except by the initia-
tive of the banking and currency COM
mittee itself. which has not altered In
the remotest degree the essential
provisions of the bill as originally re-
ported by the committee to the eau
Gus.
The bill established ~ regional
reserve banks. with a capital OF not
iess than $4,000, 900 each, to which
national banks are required to con-
tribute an amount equal to 10 per
cent. OF their own capital stock and
to become liable FOR an additional 10
per cent. In case of call. This, II IN
estimated. will give the regional re-
serve hanhs combined paid-up cap
ital OF s1o5.ooo. .oeO. The regional re-
serve banks also are made custodians
OF a large part OF the reserve money
OF mombe- banks. estimated at about
Nlo.oeo.oDo in the aggregate. They
also receive the government deposits.
estimated at from s150.oOO.o 900 to
$3.50. 600. 900.
over the whole system of regional
reserve banks Is to be a federal re-
serve board consisting Of seven men,
oera This board Is given extensive
powers of supervision, examination
and control.
The measure provides an advisory
council Of bankers without actual
power composed OF one member from
each Of the IL regional reserve dis
tricta
Ono important provision is for the
gradual refunding. for a period of 20
years. OF the United States 2 Der cent.
bonds. into per cent. government
bonds without the circulation privi-
iegc This will mean the eventual
retirement OF national bank notes.
The circulation privilege will thus re-
vert to the government itself issuing
through the regional reserve banks
on a gold reserve OF 33 la per cent.
TO be provided by the banks.
The notable reserve features OF
the bill contemplate a reduction Of
the reserve requirements OF reserve
and central reserve cities from 20 to
is per cent and Of all country banks
from l5 to 13 per cent. The federal
reserve board In required to establish
a graduated tax on the amounts by
which banks may be permitted to fall
below reserve requirements. such tax
to be uniform In It's application to all
banks.
National banks are compelled to
become members Of the system under
penalty OF forfeiture OF charters
while state banks are permitted to
become members under regulations of
the federal raa.ryo h~u.a
Concerning the provisions relating
to rediscounts. over which there was
such a prolonged fight. and as a sub
stitnte for which Representative
Henry and others offered amendment
comprising Is printed pages, the only
change made was To add two and one
quarter typewriter lines. declaring
that nothing contained In the bill