Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-08-10
Total Of 100000 and under.

over $0OO,O0O C0pltal. .......... SV4
It Is apparent that the great num-
Der Of small banks would give them u
predominating influence In choosing a
majority Of the directors. A majority
Of all the capital OF national banks Ii in
banks Of $780, 00 capital or less. II the
state banks generally come into the
system the strength OF the small banks
would be further increased. It 10 also
to be noted in considering the relative
Influence Of small and large banks that
the latter are grouped in few central
cities and that in any possible arrange
ment of fifteen districts most OF tho
latter would be controlled by the banks
Of moderate capital. It would seem 70
be clear that the small and medium
sized banks would have ample repre-
lsentation in the management OF tho
Reserve association.
Provision is made that the district
and national boards shall each have
number Of members chosen from out
side of the banking business who shall
fairly represent the industrial, COM
mercial and agricultural interests.
This Capitalization of authority IS
to one vital function does not mean
ia Capitalization OF control over bank
ing facilities. The banks Of all sections
OF the country will have the same free
dom Of action they have now and will
have in the past, and the field will be
open to new competitors as heretofore.
Furthermore. the banking business will
be conducted with a greater sense OF
security and with more regular and
stable policies than the individual
banks have been able to maintain In
the past. In brief, all Of the present
banking facilities OF the country will
remain, enlarged and strengthened,
but when the powers Of the Reserve as
ISOLATION are called upon they will be
administered under one consistent pol
Icy. by rules which will make them
equally available for all applicants.
The fact deserves to be en-
phasized that this Is not centraliza-
ton: 1t is decentralization. The cen
trail organization by supporting all Of
confidence throughout the system and
enable the members to deal with each
other Its influence will be against
the accumulation Of country bank
funds In the centers, so long as any
part Of the country is wanting credit
to finance its current business.
Continuing on this same line OF
argument, Mr.. Vanderiip says:
But in adopting this the plan re-
tains what has been the distinctive and
essential feature of banking in this
y,
bank. owned and managed in the COM
munity where it is located. It remains
the unit of our banking system and the
plan is devoted to providing an or
ganization OF these units 50 that they
may more effectually aid and support
each other. 1t aims to accomplish
this, moreover, by means which Will
preserve The individuality of the unit.
and offer an incentive to good bank
lSyo0 fs1uf ~ h1yv Inc al 1,oy MI n
a dead level with an obligation to sup
port each other regardless of an In
dividual banks character, deserts. or
qualifications to conduct banking
business.
Vague objections may be raised to
Capitalization Of power. but there is no
escape from the weakness and inca
pacity Of the present system without
creating power somewhere. The plan
supplies It bv what would seem to be
the most unobjectionable method it is
possible to devise, the use Of an
agency which the hanks themselves
will control. limited in its functions
and subject to practically complete
supervision by the government.
With this organization or one per-
forming substantially these. functions
there Is little risk in saying that anoth :.
l. r suspension Of cash payments will
never be experienced in this country.
This in itself is Of great Importance.
lit would be Of inestimable value to all
classes and all interests to have pro-
lection against a repetition of the ex-
Iperiences of 1907. But that is not all.
or even the chief Of benefits. Fourteen
years interviewed between the panic OF
1898 AMI 1907, but in every year Of
that time the facilities which the Re-
serve association will afford would
have been helpful in many parts of the
country, particularly in the crop-rais-
ing season They will help eve-.'
community to use the credit which It
! is entitled to use and do 1t under "ueh
restrictions and supervision that the
banking business Of the whole country
will be in better condition than it has
ever been heretofore They will en-
large the credit facilities of the local
banks COR all special and temporary
needs. protect the m ,ney markets from
extreme fluctuations. and make credit
conditions more starle and uniform
Throughout the country.
oTTUMWA GOES "WET.'
Ottumwa and vicinity were blessed
with a heavy downpour of rain last