The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-01-05
Commission Plans to
Keep Control. From
Wall Street.
ITS POWER TO BE
BUT 10 PER CENT.
In National Reserve Association
Scheme It Is Believed Irnpossi-
BILE for Any Set of Financiers
to Dominate-South Will
Have 20 Per Cent. of
Representation.

Washington. p. c.. January 4.--The
Monetary Commissions plan fo, a ma
tionai reserve association. when 1t goes
TO Congress on Tuesday, Will provide
Tor an organization SO constituted that
the financial institutions of New York
the scat of the money power in the
United States-will control less than
10 per cent. of the total representa-
ton in tho central association, al
though they possess fully 80 per cent.
OF the banking capital.
This has been done to guard against
so-called Wall Street control OF the
proposed institution which would
largely supplant the United States
Treasury and perform the functions
of national fiscal agent.
The South, with about 10 per cent.
of the banking resources of the coun-
try. would control % per cent. OF the
representation in the rescsge associa-
ton; New England, with IL per cent.
of the banking capital. would have 8
per cent; the Middle West. with %
per cent. of the banking capital,
would have 80 per cent. and the Far
Western and Pacific States. with about
IL per cent. OF the banking capita
would control approximately 20 per
cent By prescribing such method
Of organization. 1t Is expected to re-
move completely the possibility of
control Of tho reserve association from
any single group or set OF men
Fifteen branch associations will be
two In the Eastern States, four In the
South, four In the Middle West and
four in the Far West
Believed Impossible.
To control the reserve association it
Will be necessary TO control "A ma
jority of the branches. This IS held
to be impossible IL has been pro-
posed that ownership OF bank stocks
by other banks be prohibited. and that
amy bank member OF the reserve
association be forbidden to own any
stocks in another bank. II has also
been proposed that when u bank ac-
Guires stock control in another bank
IL be prohibited from voting that
stock in the main organization.
Much study on the part of the com
mission. however has failed to suG-
gcst any provision which would be
impossible OF evasion. Solicitor Cen
eral lehman. who conferred with the
commission at the request Of President
Taft. was of the opinion that such n
provision would present SO many diff
iiculties that II would detract from tho
general plan. Secretary MacVcagh de-
clared In favor OF such provision.
Chairman .Aldrich has asked Mr. Mac
Veagh to suggest one. To-day. Mr..
MacEeagh wrote Chairman Aidrich
that he thought 1t was of great i'm
portance that the commissions plan
of reform should include the prohibi-
ton against one bank holding stock
in another. directly or Indirectly. He
said he had not had time to frame his
Ideas into provision of law, as re-
Uuirad com
Chairman Aidrich and his advisers
maintain that control of the main
organization would be impossible be-
cause of the provision which scatters
the representation among fifteen dis
tricts and distributes the balance of
power all over the country rather than
in the financial districts.
If any workable plan OF defeating
interholdings of stocks can be de-
vised, however, it will find a place in
the commissions report as an addi-
tional safeguard.