Highland recorder. (Monterey, Highland County, Va.) 1877-1972, 1914-01-02
CURRENCY BILL
pAS0F2 SENATE
Democrats Vote Sa!Id:J For
th} ls.cv2sj|''.
NOW GOES tt tO.!F EII'c"OE
Differs Only Slightly From That Fass
ed by the Hoase-Pro'isions Of s's

Bill.
The administration currency d.
vas passed in the senate by 'ote
"A to "a.
Immediately after tae A !, an. aaaqpmaaessE BUS
ID the senate named nine con.ereeS
ol act on behalf of the senate as {.
difference committee Of the tWG
I6tses to adjust the differences be-
tween the senate and house bills.
The senate adopted, as substitute
Tor the house bill, the measure framM
by the Democratic senate tau US,
which is considered satisfactory TO
president Wilson.
The Democrats voted solicly Tor the
measure. Senator PcindeXter (Pro5rcs-
sive) and six Republicans joined the
Democratic majority in the final vote
ON the bill.
The senate rejected the substitute
sor the administration currency Dill
framed by Senator Hitchcock and the
Republican members Of the banking
committee by vote of 43 to Al. Sena-
tor Hitchcock voted with the Repub~
iicanS.
The Democrats were forced to call
upon Vice President Marshall to cast
deciding vote to break a tie and re-
iect the proposal to strike out of the
bill the provision allowing the ap-
pointment Of officials by the federal
reserve board without reference to
the civil service law.
The fundamentals Of the bill pro-
vide:
The issue of currency, guaranteed
by the government, based upon notes
and bills representing commercial
transactions and backed by gold re-
serve. The new currency is expected
to contract and expand to meet the
varied demands of trade.
The concentration of the bank re-
serves of the country in regional in
stitutions capitalized by the banks Of
the country and controlled by direc-
tors elected by the DanKS.
The creation of a market for the
negotiable commercial paper which
forms the bulk of the assets of the
banks, where, in times Of stress, those
assets may be easily and without loss
transformed into cash.
The establishment of from eight to
twelve great regional banks through
out the country, which will issue cur
rency, rediscount paper and central
lie and mobilize the reserves of the
local banks. ?
The creation Of a federal reserve
board of seven members to be ap-
pointed by the president, with final
powers of control and supervision over
the entire system.
In the foregoing general principles
The bill is practically the same that
passed the house. But in phraseology
and more or less important details,
hundreds of changes have been made
by the senate.
Under the house bill the earnings
Of the regional banks, after paying 5
GER cent dividends on the stock, and
establishing a 20 per cent surplus.
would have been divided among the
member banks and the government.
The senate has amended the bill 50
hat the stockholders shall receive a
per cent dividend, a surplus fund Of
% per cent of the capital shall be es-
.ablished, and that the remainder CT
The earnings shall be divided, one-half
going to the government as fran.
hise tax and the remainder founding
| "depositors insurance fund.-" to re-
nburse deposito'sin failing member
>ankS.
The senate has broadenei mater
ally the character OF, the commercial
,aper which viii be eligible for re.
discount and which may be used as 4
.asis for curreny. Under the house
ill only paper nRturing within nilety
laws was available, but the senate has
croadened the Vovisi2n to include
percentage Of 81, months paper il or
Ter to accommodate smaller banks il
-ural communities which handle little
hort time pape,.
Senator Burtol endeavored to pre-.
ent the issue @, the new currency III
nominations Of 81 t. S, bat All