Evening journal., 1911-03-31


A Reserve Association which will
be the principal fiscal agent of the
United States. The head Office OF tho
association TO be in Washington. with
branch in each of fifteen districts
into which the country shall be di-
yided. The board of directors shall
consist of forty-five members. There
/ shall be a Governor and two Deputy
Governors appointed by the President
of the United States from a list sub
mitted by the directors. There shall
be four classes Of National Banks:
Il, Banks as now established by law;
2, banks having power to conduct
business in foreign counties; 3, banks
having savings departments and au-
thorized 10 make loans on real estate;
and 4, banks TO exercise all the func-
tions and have all the privileges given
70 trust companies by. the laws OF the
various States OnlyANational banks
may subscribe to the capital stock of
the Reserve Association, All the
privileges and advantages of the as
sociation shall be equitably extended
10 every National bank that shall sub
scribe to its proportion OF the stock,
Outstanding notes OF National banks
to be gradually retired and the notes
of the Reserve Association substi-
tuted therefor. The association may
issue additional circulating notes, All
notes Of the association must be COW
cred TO the extent Of az least one-third
by gold or other lawful money and the
remaining portion by bonds of the
United States or bankable commercial
paper They shall constitute a first
lien upon all the assets of the asso-
citation. and ample provision must be
made for their immediate redemption
in lawful money,
New York Plan.
A central banking organization, and
not merely an association OF banks
an instrument not for monopoly but
for strengthening and preserving the
independence OF the individual banks;
an institution designed primarily for
public service and not for profit, not
10 compete with existing banks, but
TO assist all OF them 10 serve the
business communities more efficiently.
Tho business of the central organiza-
tion 10 be conducted through branches
to be established IN the banking dis
tricts into which the country shall be
divided, and 10 be limited TO transac-
tions with the Government and with
the stockholders Il shall, free pf
charge. receive and disburse all
moneys Of the United States in places
where II shall have Offices. The cap
ital stock to be owned by incorporated
banking institutions, including trust
companies, whether under National or
State charters, willing TO assume
equal duties as a basis for equal
privileges. The administration of the
central organization 10 be divided be-
tween the member-banks and the
commercial classes. II shall have
power 20 issue circulating notes pay
able in gold. secured by gold and
negotiable paper, and ultimately be-
come the sole note issuing power.
Wilmington Plan.
A National bank to be known as
"The Bank of the United States,
with the principal Office in Washing
ton and branches IN each of twelve
banking districts into which the coun-
. try shall be divided. The affairs OF
the bank to be managed by a board oi
managers, twenty-four In number
elected by the stockholders and by I
Governor and Vice-Governor appoint
! ed by the President of the Unite'
States. The bank to act as the lsca
; agent Of the United States, or OF an
+ State Territory or city. and to estat
L lish reciprocal relations with an.
bank or trust company IN the United
States or in any territory thereof
The capital stock to be divided in thu
1 proportions Of one-half 10 the United
States and one-half to such persons
q firms or corporations as shall sub
scribe for the same. The bank to is
? sue its own notes 10 an amount equal
p to its capital stock, said notes to be
, guaranteed by the Government, and
ultimately to take the place Of all
other forms Of currency except gold
and silver certificates and gold and
silvqr coin.
> It will be interesting to trust COM
pany officials 10 know that the three
words Including trust companies" ap-
, pearing in the New York plan were
= accepted as an amendment TO that
p plan without opposition. and the plar
I then adopted as a whole. The inser-
I ton Of these words removed at once
e all doubt as TO the intention of this
5 Conference to fully recognize tbs
, rights of the trust companies OF the
| country and assure them their proper
( place in any reconstruction OF oul
81 financial establishment that may b.
= brought about.
l. The interests OF our trust com
panies will not be safeguarded how
ever. If their representatives do no
4 take active steps in that direction
what is everybodys business Is no
I bodys business" applies very aptly Z
= the relation of trust companies to th'
D movement for monetary reform and
except for the fortunate circumstance
3 of the presence of one trust office
I