Show NEW YORK BANKERS I INVITED TO GIVE CURRENCY VIEWS Provisions in iii House Bill Questioned Questioned Questioned Ques Ques- by Two Democratic cratic Senators at Hearing Sept 20 The Tho Tho bankIn bank bank- W W v ing In- and antl currency committee ot of the Senate preparing to continue Its hearings on the tho administration bill bUl as passed by tho tod today decided to Invite Frank C C. president of or the National City bank o ot of New ew York to discuss the measure before tho the com corn Later Vice VIco President Talbot of oC the same institution will sill be Invited to appear The committee has decided to have In attendance an expert export from the theoffice theoffice office of or the tho comptroller of or the tho currency currency cur cur- rency to keep the committee straight on technical questions during the thc examination exam exam- of or witnesses in future Monday the thc committee will hear Samuel Samuel Samuel Sam Sam- uel er who is attorney for tho the I Pujo subcommittee of or tho Ito Hou House c bankIng bankIng bank bank- Ing and currency committee conducted the tho extensive money trust investigation In tion of ot the tho last Congress ss W. W YV tv 1 Flanagan a. a a retired d New York banker was before tho the committee to toda to- to day da He lie approved the tho bill bUl in principle 1 but SugS' SugS suggested sted a nu number b r of Jim nd nie ts ills examination developed n an rui l Inclination on the tho part of oC Senators Reed of or Missouri and Hitchcock k of ot Nebraska to question various arlous provisions pro of or the measure Senator Hitchcock qu questioned the banker closely as t to thc the possibility of ot tho the proposed federal c eral re reserve reserve re- re serve board expanding and contracting credit throughout the thc country to suit its political purposes and of oC tho the re regional ro- ro gional reserve banks exercising a 1 baleful influence over member banks through the regulation of oC loans and discounts dis dis- counts On the latter point Senator Reed asked several questions indicating that he feared the power conferred on the tho regional banks would enable them to dominate not only the banks but the Industrial Institutions in their districts Mr Ill Flanagan said he hc e expected no such evil results from operations of or tho the bill The changes proposed by bankers said sail Mr lIt Flanagan were not supported b by arguments that appealed to tho the reason They Thoy seem to rely chiefly on a formidable formidable for for- array of oC names a of banking In In- In said he be The chief change recommended by byr Mr r Flanagan which received some ome approval approval approval ap ap- ap- ap from Senators Hitchcock and proposed that an any bank havIng having haying hav hay ing United States bonds deposited as security for tor bank notes equal l to one- one half Its capital stock should have tho the right to deposit with the federal re reserve reserve re- re serve bank c commercial paper as collateral collateral collateral col col- col- col lateral for an additional Issue of or notes Continued on Page Pase 5 Column 7 7 NEW NE YORK BANKERS INVITED TO GIVE CURRENCY VIEWS Continued from Page I 1 tho the total notes outstanding not to exceed exceed exceed ex ex- ex- ex the amount of ot the banks bank's capital stock Under that plan the comptroller of oC the currency would deliver Incomplete Incomplete moors plate notes which could be put into circulation only when the bank had set aside a gold reserve equal to 60 50 0 per percent percent percent cent of the value alue of the tho notes note Senator Hitchcock said he believed such a plan would democratize the banks Under the administration bill discretion is left heft with federal officers as to whether a bank may secure notes notee in exchange for tor commercial paper r. r |