The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-12-21
SWEEPING REFORM
IN BANK SYSTEM
Continued from First Page. ,

NNpHtIHutu from FIRST PaEe,)
semble the central banks of Europe.
1t would also possess the privilege.
now granted the national banks. of
Issuing circulating notes, but in other
respects it is widely distinguished from
central bank. Its capital is held
exclusively ny banks, and it does not
enter into competition with the exist
ing banking institutions OF the coun-
-s-*t1s U1Ie FTeat 0D lection
made to the old United States bank
As regards the danger of concen-
tration of power, the advocates OF
the Reserve Association point to the
iact that Wall Street and the great
financial countries now exercise an
influence over credit and rates of
interest which would be impossi bl e
under the proposed plan, which con-
tains divers provisions, TO prevent
the Judgment of control in Wall Street
or with the great banks of the coun-
try.
Local Associations.
There are to be local associat tons
OF banks. three-fifths of the direc-
tors of which are to be elected by
tae banks which are members. each
having one vote without reference to
= size. so that the bank of $4,000 cap.
ital has Just as much voting power
as one of $5.ooo.oo0. The remaining
iwo~hfths nf the directors arc elect
ed In accordance with the stock
holding
These various associations are
grouped into fifteen districts or
branches OF the Reserve Association.
ne same care is taken to select the
| directors OF the fifteen branches OF
the Reserve Association and Of the
! Reserve Association itself The CEN
trail control Of tho association. il is
proposed. shall he vested in forty
fire directors. The secretary Of the
treasury. the secretary of commerce
ana labor, and the comptroller Of
the currency are TO be three of these.
f1fteen are TO be- elected. one BY
! each of the fifteen branches of the
reserve Association. Again there
are to be twelve directors~not Of
feers or directors of banks. who shall
he chosen by tbs -sot her directors TO
represent the Industrial. commercial,
agricultural and other interests ~
the country II is very important
feature of the nlan that the rate of
interest shall be the same and the
methods for obtaining loans shall he
alike for all banks in the country.
The rule that the rate OF interest shall
be uniform will very much aid the
newer portion of the country, where
banking capital is sow deficient.
Advantages OF Plan.
The great advantages which must
result from this institution are: The
concentration If the reserves of banks
and provision for a safe and eff
Gent currency system, which will re-
spond to the demands OF business and
meet all Its requirements Elaborate
provisions are made for Outstanding
the reserves for making or loans
under all various conditions. and for
securing equal advantages to all per.
lions of the country.
Tho proposed organization has been
very generally approved by bankers
and by students OF the subject, as
wen as by the members OF numerous
associations of farmers and stock
men who have given attention to the
subject. The necessity for some action
is universally conceded and the plan,
with such notifications as may pre-
vent i'm the greatest possible degree
concentration of control or monopoly,
is saffcient to adequately meet the
situation.