The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-01-05
Proposed Monetary Reform
Said to Guard Against So
Called Wall Street
Control.
NEW YORK HAS LESS
THAN 10 PER CENT
Far West Given 25 Per Cent
of Representation in Ma
tional Reserve AS
sociation.

WASHINGTON, Ian, 4.-The monetary
commissions plan for a national reserve
association. when il goes 10 congress on
Tuesday. will provide for an organization
50 constituted that the financial insulu-
lions of New York would control less
than 10 per cent of the total representa-
iion in the central organization. although
they possess fully 80 per cent OF the
banking capital
This win be done 10 guard against
-su-caIed Wall street control OF the pro-
F. posed institution which would largely sup
plant the United states treasury and per,
form the functions OF national ilscai
agent,
The south with about 10 per cent OF
the banking resources of the country,
would control % per cent OF the repre-
Sentatiou in the reserve association New
England, with l. per cent OF the bank
ing capital would have per cent; the
middle west. with 20 per cent or me
banking capital. 90 per cent. and the far
western and. Pacific states, with about
ls per cent Of the banking capital, ap-
moSimately 20 per cent o,n,u,
ton. Is said to remove completely the
= possibility Of control Of the reserve asso-
tiation by any single group OF men.
y-ided FOR for. one In In New England. two in
the eastern states, four in the soulh,
four in the middle wcst and four In The
far west. To contfol t!le reserve aSSo
citation It would be necessary TO control
a ma jorlty of the branches. This IS con-
sidercd impossible.
II has been proposed that ownership
Of bank stocks By other banks be pro,
lbited and chat any bank that Is
member Of the reserve association be for
: hidden 10 own stocks IN another bank
II also has been proposed that when
hank acquires stock control in another
bank IL he prohibited from voting that
stock IN tho main organization.
Much study on the part OF the com
russion, however. has failed to suggest
Of evasion Solicitor General Lehman.
who conferred with the commission al
the request Of President Taft. was OF
the opinion that such a provision would
would dctract from the general plan.
Secretary MacVeaEh publicly declared in
favor OF such a provision. Chairman
Aidrich has asked Mr.. MacVcasn TO sug-
eest one.
Today Mr.. MacVeagh wrote Chairman
.lldricll that he thought II was OF great
importance that the commissions plan
or reform should include the prohibition
against one bank holding stock in an
nther, directly or indirectly. He said he
llad been extremely busy and had not
had time 10 frame nis Ideas into a pro-
vision OF law. as requested by the com
mission.
The truth is tho secretary added.
II am not In the spirit OF writing none
iary laws. as you, arc, and mine would
he but an apprentice hand. anyway"
Chairman Aldrich and his advisers
maintain that control of the main or
sanitation would be impossible because OF
sentation among fifteen different districts
and distributes the balance OF power all
over the country
II any workable plan of defeating in
ternodings OF stocks can be devised
however, II viii find a place in the com
missions report