New-York tribune., 1910-03-24
T, NEW BANK PLAN
pM.WARBURGS VTEV
rorors United ReSerUe InStitu-
s;on scith 500, 900, 900.

..l Il Narlurr. ~ kuhn. Loeb a. Co,
.ssress last nirht before THO Finance
-, rrcscntod an outline plan ~ q
,..s Reserve Bank ~ thc United
-. +" a sucrostca mobilization ana adap-
-. 90 conditions in this country 81 the
.-., hank plan. and criticised IN detail
.reumcuts which have been made
80, the central bank i6ea by Victor
- and Professor -. n. W. Sprarle.
r-,red Reserve Bank. under Alr
-...r..rr's plan. would have Slooojaooo cap
ana rs headquarters would he IN
.,,reton There would De I'm tho Tn.tod
-. .wsrty Zones ~ operation. each of
~, would contain "a voluntary cssocia-
. hanks which might hc called "a
- association. TLrcc-fiths ~ the di-
- a the United Reserve Bauk would
-. nominees of these hsukiDg associa-
=. o-e-Gfth ~ THE directors. not hank
.s company presidents and preferably
.,sss men. would DO selected 10y the
-.s.,lders ~ the United Reserve bank.
7, 80 remaining oic-nfth would he the
} ...,srv ~ the Treasury. the Controller
-. currency. the Treasurer of the
...s states and some others 10 he n0mi-
- =, rhem The share capital woula he
- among tie hanks Of the country or
4. !, the general public. DIVIDENDS on
I. .,ssl would Re limited O. & per cent
i. ,,,,ss praft to 20 10 tho government.
-. r-rtra Reserve Bank would De al
- % accept deposits free 81 interest
Il .ts rovcrumer. and from tho mem
u. ~ The banking associations, The de-
II IN IA f.r1 rs sis
n. depos.ung Institution. IL would buy
-, sssociat.ou members commercial pa
ts,lre ro lo-ECr 90 run than twenty
| -. 5svs trc aggregate amount which
IA no 81 .1urrj 10 BE- restricted % a
.-,,ir nroporrIan g the capital and sur
| i. M each hank % would also he privi-
| -.s, =, t.y ecm member banks CONNER
4 nsnsr ha,iuG more than twcuty-eight
"a ,,ss thar ninety days 20 rUu, such pa
80, D. reilscoanfed only n carrying the
/ s.-sement az tre banking association 10
,..r me bank selling 4 belonged.
~ United Reserve Bank would also he
n,,..ed O. buy under restrictions sug-
,,rss n Nlr WaruWgs plan, paper hav
- ro more thau ninety DAYS 10 run and
-spied ~ one banking insetitLuon and
-s--ss6 hy another. commercial bills on
,-,,F countries having a maximum ma
-ltv of ninety days. and bullion, and
,-rs nave the right % buy and sell gov
,-r~eri bonds or Treasury notes. II would
a., h allowed o. issue circulating notes.
auss On demand in goId; such notes Co
= secured by hl.s bought by The bank and
4 ~ god "a The smouut Of az least onc-third
stht total amount az notes outstanding az
~ time
Provisions Cor Branches.
Branch Offices os Tie United Reserve
Is,nk would hc established in cities IN
st.-t were tac main offices ~ tho several
] ,rk.ng associations. and banks or trust
onrsuies desiring to use the facilities ~
bt Tinted Reserve Bank would be asked
a-eG with thar institution OF ils branches
Ils. balances lrop0ruoncd 10 the size ot
D. business dauc ly thcm
lr discussing the features OF Dis plan.
p Wsr'u.g s..3 in part:
lie c.aef criticism thai las been raised
Ifalst a centre. bank is that ID is subject
ttf danger ~ control ly either politics
tnanCe Would This danger exist under
s1111y could do 90 u provision were
Gse thar ghc stock should De- divided
1g The eighteen Thousand banks of The
4 -isi States Elt even without such pro-
4 E1r iheIe would hc DO danger ou t.is
-e f0r a man or a group ~ men
n lirrE fle whole capital sfOCk Of the
'l reserve bank WnGld, after Hl, only
\ lIe the richf To- appoint q few m,m-
ffs 0f the board who would De- iu q lOlsc-
E Minority against tile combined luem-
II" W f.e banking associations al tire
e country and against Llc members
4 presenting tlr eminent
Taxing INTO liberation all these safe
---1s. name. The mOlus Of appointing
Il p board, tlt re-rUcfiOu 0t iIrOMe Ul tEe
n ~ ard t.t limitation as % transactions
tri'ed -o rre central reserve hank. it is
lie.y SAFE 90 Say tlat under such "a
..er any tear OBJ danger ~ undue tuan-
a m loitCa control may he dismissed
~ ior al
llt united reserve banks position would
ne stronger tac shorter the maturiucs
H hils WulIi nc