New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-04
Senate Committee Would
Relax Requirements
in War Crisis.
CONFERENCE TO-DAY
ON OPENING DATE
Board Members Expect to Con-
vince Bankers Operations
Can Begin Now.
From The Tribune Bureau

Washington, Sept. 8. A series OF
amendments TO the Federal Reserve
act designed to relax the requirements
of the present law with which, by rea-
son of the war situation, the banks are
in many cases unable to comply, were
reported to the Senate to-day by Sena-
tor Owen, by direction of the Banking
and Currency Committee. The proposed
amendments were agreed on at con-
ference with members Of the Federal
Reserve Board last night.
There is much difference Of OPINION
as to the advisability Of putting the
reserve act into operation until the war
crisis has passed. Many bankers are
OF the opinion that reserves have peen
depleted TO such an extent that Danks
cannot comply with the provisions Oh
the act. Others contend that the VI,
auguration of the new system VIII ana
financial institutions to pass the Crisis
The amendments reported to-day arc
designated to relax the requirements
regarding stock subscriptions ana re-
serves. and indicate that 1t IS tne Pul-
pose of the Federal Reserve Board 70
put the new system into operation WIN
the least possible delay.
The amendments reported by Senator
Owen are:
First-To hermit the Federal Reserve
Roard TO uostpone the payment of the
second and subsequent instruments OF
the stock subscri ptions Of member
hanks. and to postpone for periods not
20 exceed four months the reserve
requirements of Section ~ oil the ACT
applying to member banks:
Second-To permit member banks TO
carry in the Federal Reserve banks any
norton Of their reserves now required
nv Section 10 of the act TO be held IN
their own vaults.
Third-To permit member banks 10
count as part Of their lawful reserves
Federal Reserve notes up to per cent
of their net demand deposits.
Fourth--To permit member banks IN
addition to the present liabilities "nlch
thew have under the law, to incur ia
bilifies on account of the Endorsement
NJ foreign bills of exchange, TWO
name" commercial paper Endorsed by
a member bank, and such acceptances
as are nermitted under the rules OF the
hoard. but not to exceed twice the I'M
impaired capital and surplus Oh inc
bank. ,. :, ~ =
Fifth-To permit bills bought IN inc
omen market TO be used as the OASIS LOT
The issue of Federal Reserve notes :
Sixth-To authorize the Secretary OIL
the Treasury to designate the Fedora,
Reserve banks as agents Of the United
States and of member banks Tor the re-
demption of bank notes in CIRCULATION
including the AldrichVreeland emer-
oencv currency notes, and to put IN
onerstion a system of clearance re-
tween the Treasury, the Federal ne
serve banks and the member oanNs.
The time for opening. the new sys-
tenn probably will be determined TO-
morrow at a conference here, between
FEDERAL Reserve Board members ana
renresentatives Of clearing house assoc
cations in twenty of the large citles.
The hoard members hope to convince
Tho bankers that an early opening IS 10
no desired. and that the transfer from
,bo present national banking system
With its corollary of the Aldrich-V ree ZEE
land act. can be accomplished "ltn III
tie friction and practically no neon
The conference will take up also the
question of the foreign indebtedness Oh
American merchants in the nope Oh
finding a solution without payment 10
Europe of large amounts Oh golu'