Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1912-01-12
SENDS REPORT TO TAFT
MONETARY COMMISSION AFTER
HARD STUDY SUBMITS PLAN.
Members Believe Recommendation, II
Enacted Into Law, viii Accom-
plsh Needed Reforms.

Washington, d. C.-"There is gen.
eral agreement among intelligent
students Of the subject that to remedy
defects in the present monetary sys-
tenn 1t is necessary to prepare a COM
prehensive reorganization of credit
and a thorough reconstruction of our
banking systems and methods. We
submit herewith our recommendation
providing for such reorganization in
the form of bill, which If enacted
into law will, we believe accomplish
these results"
With this statement the report of
the monetary commission, which was
sent to President Taft, begins,
The report which Is the result of
much study and travel has just been
completed. 1t continues in part:
1T is proposed to incorporate the Ma
tional Association of the United States
with an authorization of capital equal
to 20 per cent of the capital OF all the
subscribing banks of which one half shall
be paid in the remainder shall become
liability subject to call under provisions
OF section 3, of the bill. 1t is also pro-
vided that before the reserve association
can commence business 800. 100000 of
capital must be paid In cash. All state
banks and trust companies conforming
to the provisions of the bill with refer
ence to capitalization and reserves, and
all national banks are entitled to sub
scribe to stock and become members of
the association.
THE principal function of the local
association Is to guarantee upon appli-
cation and commercial paper of Individual
banks which may be offered to the
branches for rediscount. The bill pro-
vides that the entire country shall at
first be divided into Is districts with a
branch in each district. The executive Of
hcers Of the National Reserve associa-
tion are to consist OF a governor, two dep
uty governors a secretary and such sub
ordinate officers as may be authorized.
The governor who is to serve ten years
is selected by the president of the United
States from an eligible list not less than
three In number furnished by the direct
ors, and the deputy governors are elected
by the board Of directors. The board is
to choose from among its number an exc
cutive committee consisting of nine mem
bers of which the government and the
two deputy governors and the comptroller
of the currency shall be ex-oficio men,
bers. The board is also to elect from
among its number a board of examina-
| ton of which the secretary of the treas
| ury shall be eX-officio chairman.
THE bill provides that the National
| Reserve association shall become the prin
cipal fiscal agent of the United States
and as such shall serve through its
branches as the custodian of the general
funds of the treasury as the depositary
of its receipts and the instrumentality
through which its disbursements shall be
| effected. The system OF storing surplus
| revenues in independent vaults and of
withdrawing the moncy from the chan
! nels Of business into useless inactivity
| has not been followed in other countries
| for centuries and is contrary to the
| methods followed by our state and munich
| pal governments well as by private
| corporations and individuals. In the pro-
visions of the bill for the election of di-
| rectors of the National Reserve associa-
| ton we provide for 30 directors, two to be
| elected by each of the Is districts defined
| in the bill, and nine additional directors
| to be elected by voting representatives
of the districts.
New York. under these provisions with
| % per cent. of the banking resources of
| the country would have s per cent of
| the representa- ton on the board, New
| England with ~ per cent. of the resources
| would have per cent. of the representa-
| ton; the eastern states as defined in the
| bill with Al per cent. of resources would
| have Is per cent. of representation; the
middle west with "a per cent. of resources
| would have 81 per cent OF Representations
| the southern states with II per cent. of
| resources would have 23 per cent. of rep
| resentation and the western and Pacific
states with II per cent of resources would
have % per cent. of representation. The
| New England eastern and middle west
| states taken together with n per cent. of
| the resources could elect only 81 out of
the 46 directors in the reserve association.
while the southern, western and Pacific
states with 23 per cent of the resources
might have 46 per cent. of the representa-
| tion.
I'VE think that this statement must of
itself show conclusively that there can
be no local domination-no domination OF
selfish interests in this organization and
that fear of possible Wall street control
can have no substantial foundation"