| Show r BAN BANKERS ASK S. S FOR AMENDMENTS TO CURRENCY BilL BilLI Desire to Make New System I More Attractive and More Flexible i ASHINGTON Sept 2 3 Support fur for forI I I W W many principles of ot tho the admin admin- 1 currency bill was t drawn from leading leading members of or tho the American hankers Bankers association today at the first session of ot tho the hearing begun by the d 8 Senate mate committee on banking and curd cur cur- rency Representatives es of ot the tho recent conference of ot bankers at Chicago who appeared to present recommendations for amendments to tho the bill emphasized y tho the foot that they did not come com In a a. ai i spirit of antagonism to the tho bill but In inthe tho the hope that It could be so amended DI as to make mako tho the new system more more at attractive attractive at- at and more flexible 1 We Ye do not fear tear government control control cony con con- y s said ld Sol exler vice Ice president I ot of the Whitney Central bank banI of ot New Ness e Orleans and and one of ot the chief spokesmen spokes spokes- s- s men for tor tho the delegation We Ye want only minority representation on the federal reserve board not to exercise undue In Influence influence In- In fluence nU nce upon Its actions but to prevent abuses that might arise Senator Cra Crawford Protect The rime strongest est Indorsement of ot tho the general purposes ot tho the administration currency reform plan camo came near the close of or Mr h c acv's examination when Senator Crawford a z Republican member of at the committee declared the tho country banks of at a D. state like South Dakota Dakota Da Da- kota cota had nothing nothing- to gain and would suffer utter greatly h by being compelled to withdraw a a- apart part of at their capital from fromI froma r I Jl a thc business within the state and l end Fend It outside to a tL regional reserve reer bandI band J. J I 1 think the tho senator has drawn tho the too dark ark and gloomy said Mr Ir I dont don't think banks should be compelled to enter enfer tho the now no system 4 but hut It could bo made n attractive e enough ft y to Induce them to come corne In There P would be real benefits even tor for a a stale I that would have little to do with a aS S Regional fonal reserve o bank Anything that will stabilise t finan-t l conditions will t help holp all nil states state fI even even 4 Continued on Page Iago 2 Z Column i. i I I l BANKERS ASK FOR AMENDMENTS TO CURRENCY Bill Desire to Make New System More IMore Attractive and More Flexible Continued From Page rase 1 new ness states tates with Ith no lar large e financial or industrial centers center Now Not ot there is no stabilizing Influence wo we are always alwa'S on the edge of or a precipice James B B. Forgan president of ot the tho First National bank of ot Chicago and chairman of or the tho Chicago o con conference terence and Mr exler testified today toda and covered part of oC the ground embraced In Inthe Inthe inthe the series of ot sug suggestions for amendments amend amend- ments to the bill made by the tho bankers banker a week Meek ago Suggestions Ir Presented Suggestions upon which they dwelt with chief chIc emphasis today were That tho the banks rather than the federal federal fed ted eral treasury issue currency That a central bank or not more mor I than five regional banks would b be preferable to tho the proposed twelve regional banks That membership of ot national banks In tho now federal system should be OPtional oPtional op OP- OP not compulsory as the bill provi pro pro- vi I es That tho the amount of or regional reserve reser bank capital for which each national bank must subscribe should bo be reduced reduced re re- re from 20 per cent to 10 per cen cent of ot the subscribing banks bank's capital That one regional reserve bank should not be compelled to redIscount the commercial paper held b by another Sharp Struggle Forecast The sharp struggle that is to bo be waged in the tile Senate committee before it can reach any agreement upon currency currency cur cur- rency reform legislation became apparent apparent ap ap- ap- ap parent early eaily in the hearing Questions by b Senators Hitchcock and OGorman O'Gorman Democrats indicated that their views on certain provisions of ot the bill were svere at variance with those of or the party part leaders and Republican opposition to toman man many features of ot the bill was pronounced pro pro- flounced The Tho suggestions made b by the bankers bankers' committee that representation ba gIven to the banking interests en CU the federal reserve board boar were met with a counter unter I. I h. h t k l n-h n which cl i it t is s' s understood will be be advanced as a possible amendment when the Senate Senata committee begins consideration of the bill This was that the bankers of or the country countr should be allowed to submit to the President a alist alist alist list of fifty or one hun hundred red men an anthe and anc the tho President be authorized to select from Crom this list the four members of or the federal reserve board We e do not ask or expect that men mer named to the tho federal reserve board should remain members of or an any bank said Mr Forgan Our contention Is that banking hankIns- is a proe profession slon that can be bo learned only by experience and ant men who vho have served as bankers should have a voice In tho the administration of ot the tho national banking system Advocates Advocate Central hank Both Mr Jr and Mr Forgan said they believe the tho banking interests ought ous-ht to retain control of ot their property property property prop erty consisting consisting- of ot the capital they had Invested and had Both advocated a n central bank as preferable pre pro to the tho proposed system Under a central bank the they said reserve mono money could be fed out through two hundred or more branches to the precise spot whore It was needed without forcing on ono one a Independent reserve re- re servo serve bank arbitrarily to rediscount the tho paper of another The bankers claimed that under the propos proposed cd s system stem of ot twelve regional reserve re- re servo serve associations It would be impossible sible to secure enough capital In some districts to make up the minimum of ot They declared many changes must be made In the bill including the reduction in the tho amount of or capital re required required required re- re to be bo taken by each bank If It tho the state banks and trust companies were to bo be Induced to enter the new system t C Objections to the provision giving tho central board the power po to remove a regional reserve board boar director were based on the belief beller this would mako make regional reserve reser directors directors' timid about using their Ju Judgment In passing on commercial paper The bankers also objected to the governments government's agent In each district acting as chairman of the thc local board of or directors on the ground that he would be unfamiliar with local conditions and that he had no direct Interest in the welfare of ot tho the bank |
