The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-11-22
SEES POLITICS IN 1T
Bank Commissioner DoIley Attacks Al
drich Currency plan.

New Orleans. La. Nov. 22.-State
Bank Commissioner J. \. Dolley. of
Kansas, discussed the monetary com
mission and its relation to state banks
before the convention OF bankers mere
/ late yesterday. He declared thaI the
state banks and trust companies would
accept no plan that did not recognize
them as a part of the financial system
of the country. He said in part:
The American Bankers association
is at a critical period of its existence,
and the minds of the rank and ME
should be disabused of the idea that
| a certain clique of men are going TO
ram measure down the threats OF
the majority without even giving that
majority a chance to be heard on q
! question which is of the most vital
Importance to every community. This
plan should not be devised by any one
man or set of men to advance personal
interests, and any man or po1tlcal
party who undertakes or tries 10 III
( any way inject politics into this great
question, in my Judgment is not acting
periodically and for the best Interests
of our people.
believe we should make it our own
proposition, under our own initiation
| and administration, instead OF that q
the president of the United States and
/ congress. We can build our own as
sociation, and ask congress for iesls-
lation where it may be necessary, aud
not surrender our rights and obje-ts TO
political influences. We all agree that
/ it should be kept enArely out OF poll
tics and entirely free from the c!eta-
ton of political and possible combina-
tons
[ do not see how this can be done
under the present plan. The political
part is very apparent. The governor
and the two deputy governors are TO
be appointed by the president of the
United States. They are members OF
the directorate of the association, to-
gether with two members of the cab
met and the comptroller Of the cur
rency. 1t makes no difference now
high class these men are, they are an
important factor of party politics and
will serve politics more or less WITH
out doubt.
The monetary commission at the be<
ginning considered only the national
banks From time to time Mr.. Aid
rich and the commission have granted
| or suggested certain rights to the state
institutions The interests of the state
: institutions have at all times, in my
Judgment, been q secondary consider
alton so far as the monetary commits
, sion is concerned, and the advantages
offered them have been more or less
grudgingly granted The plan az
brought down to date suggests that
the state institutions may become
members of the reserve association,
under certain conditions. One OF the
conditions is that their minimum cap
itaI must be S25, O00-the lowest cap
ital under which a national BANK IS
allowed to incorporate In view OF
business of the United States is tran
sacted by the state banks and IN view
. of the further fact that they perform
certain functions. and take care OF
certain classes of business in certain
communities that national BANK can
, not and does not take care OF, why
should not the reserve association take
; | in all of the state banking institutions
. of the country without references ~
? capital?
l The Situation in Kansas.
do not know the exact number OF
state institutions that exist at INT
present time in the United states with
a Capitalization of less than Szo,oOV
but 7 am inclined to believe that there
is from 25 to 40 per cent of them Ol
the $50 state institutions in Kansas
657 of them have a capital OF less
/ than $4,000. Does the plan proposed
by Mr.. Aldrich and the monetary com
mission mean that these banks with
less than $685. 900 capital must increase
their capital to that amount or be re-
fused participation under the planz II
so it appears to me that the plan
can not and viii not be satisfactory
I in its present form. 1t might be said
tina. all state banks could increase
their capital to $4,000. / do not be-
Iieye that the smaller country banks
viii do this. or that a large per cent
of them should do it. Ten or fifteen
thousand dollars is an adequate bank
ing capital for the state banks OF the
smaller towns ana rural
, land in a large number OF communl-
ties banks could not profitably exist
with a higher capital Amend the plan
to specify that all state institutions
! with a minimum capital OF $1o,UOO De
, allowed to participate as members and
that each bank will have one vote. re-
gardless of capital, III the selection Of
|, All directors and upon all questions
and policies that call for the consider
! alton of and a decision by the stock
holders This practically admits all
serves the independence of our Ameri-
can banking system
No plan. in my judgment. viii be
acceptable to the state institutions I'M
less ar effective and workable methoo
| i available to bring the state and ma
! tional institutions of our country I'M
4 der one great, compact, perfect organl-
cation, under which the independence
Of the state institutions viii be fully
protected, and they have equal rights