The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-01-07
TO PUT LIMIT ON
BANK OWNERSHIP
Continued from First Page.

a majority of the branches will clearly
control a majority Of the directors Of the
ra tional association. thus requiring
ownershpor or controlof eight Of the fifteen
branches IN the system To insure
DOMINATION. This would mean the con-
troll Of more than half of the banking
facilities Of the United States, which on
lis lace Is an utter irnpossibility Under
IN" blll 10 be introduced by the Monetary
commission majority Of the branches
Of the system will clearly control a ma
Jorlty of tn" directors of the National
Reserve Association Under the plan "a
originally proposed by senator Aldrich
twelve directors of the association were
Ia he elected 10y voting representatives or
ny the stock. 1h" bill cuts this repre-
s"ntatlon in the directorate to nine
hder the revised plan therefore there
VIII u" only nine ont of the forty-f five
directors Of the National Reserve Asso-
'ldti"h elected 10y the voting representa-
il|"s. In" bll adds the Secretary of
Agriculture To IN" list of ex-officio d,
reCtOrs "
IN" plan az originally proposed by Sem
ator AIdrlCh provided that the directors
"l IN" ASSOCIATION should determine the
Il To t." introduced on Monday provides
"A further safeguard against Wall Street
coiiro! 10y geographically limiting the
brdnches of the National Reserve Asso-
cation. New England is to have only
one and III" Eastern States. consisting Of
ArW prk' New Jersey. Pennsylvania
and Delaware. only two There are 70
h" for" IN IN" southern States. including
the states of Maryland. Virginia, Wesi
Virginia, North Carolina. South Caro-
linz. Georgia, Florida, Alabama, Misis-
, supp, l.ouslnna, Texas, Arkansas, Ken
turhy an l'nn"ssce and the District
OF Columbia. The middle Western and
h" far Western States are TO have four
branches each
Ih" Aldrich plan does not attempt 70
deilI" by statute the geographical dis.
tributIon of these branch districts, The
cry was immediately raised that these
districts IN being organized might be
Gcrrymandercd in such a way as to throw
tn" control of the central organization
into IN" hands of the Eastern States
which means Wall Street The bill which
Will he introduced will give New York
and New England together only three of
the fifteen branches, which is very much
less than these States are entitled 10
either on basis of the stoCk holdings in
IN" Nationll Reserve Association or on
basis OF the assets Of the banks repre-
/ ScHted
assuming tnat suh-lreasury cities
naturally will be selected as branch head
quarters, Boston will represent New
England, New York and Phila delphia
N" Eastern States, Baltimore and New
Orleans and Southern States, Cincinnati.
| 'hictgu and ST. Louis the middle Western
and san Francisco the far Western States
Thus IN" South will require one more CITY
/ Hhdoubtrdly IN Texas and one in Georgia
or South Carolina, while the far West
would b" able u maintain branch head
quarters IN three other cities besides San
, Francisco. The Monetary Commission
has absolutely leaned backward in it's
! desire To he fair t. Western and Southern
interests, IN" entire tendencies of the
changes made by the Monetary rom-
mission in the original Aldrich plan have
| been 10 prevent the possibility of the con
| trol of the National Reserve Association
/ through any group of banks or interests
! In the original Aldrich plan no trust
| company WAS eligible 10 enter the associa-
| non VITA smaller capital than 500 OOJ
he bill a. II has been prepares reduces
| TINS hnlt to sj1,o0O and makes il apply
! only 10 towns of less than d, 900 inhabitants
| The new Till provides for a contingent
| lund T. he mllnt1iUcd by the Reserve
| NHSpCiltipn amounting to per cent of
/ the capltll outstanding and not To exceed
S?,UW"n' lhis fund is not to be- a guar
aht"r agl'ns, deposits, but is practically
! u prp'li and loss account and "A guarantee
hG INST impairment of capital and surplus
IN" power Of tho association under the
bill 10 hold real estate is made the same
rs thai of national banks. The original
! Aldrch plan limited loans that might he
made To 10 per cent, Of the savings de
poS'Is, The bin changes this to 80 per
cent of the time deposits
| In the original Aidrich plan provision
is mad" for the examination Of the bank
m"mbcrS of the association By the Ma
, tional Reserve Association. Provision "a
now made for the limi tied acceptance of
the Comptroller Of the Currency's reports