New-York tribune., 1912-01-05
NO WALL STREET CONTROL
New York to Have Only 10 Per
Cent Representation.
GUARDS IN ALDRICH PLAN
Balance of Power Divided-Jolnt
Stock Ownership Problem
Unsolved.

Washington. Jan 4.-The Monetary Com
mission plan for a National Reserve Asso-
citation. when il goes to Congress. on Tues
day. will provide for an organization so
constituted that the financial institutions
of New York. the scat Of the money power
I'm the United States. viii control less than
lo Dor cent of the total representation III
Tn. central association. although they pos
scss fully 80 per cent Of the banking capl-
tai
This has been done 10 guard against So
called Wall Street control of the proposed
institution which would largely supplaht
the United States Treasury and perform
the functions Of a national fiscal agent.
The South. with about 10 per cent of the
banking resources OF the country, would
control q per cent of the representation IN
,ba reserve association. New England,
with y per cent of the banking capital
would have S per cent; the Middle West
with o per cent Of the banking capital
would have 80 per cent, and the Far West
ern and Pacific states. with about Is per
cent Of the banking capital, would cohuoI
approximately 25 per cent
This method Of organization Is expected
10 remove the possibility of control or the
reserve association by any single group Ut
set Of men.
Fifteen branch associations VIII be pro
vided for-one in New England, two IN the
Eastern States, four in the South -FOUR III
the Middle West and four in the Far west,
To control the reserve association II "ouiu
be necessary TO control a majority OF
the branches This is held to be lmpos-
sible,
II has been proposed that ownership OF
bank stocks by other banks be prohlolteu
and that any bank member OF the re-
serve association be forbidden 10 own any
stocks in another bank. II has also peei'
rroposed that when bank acquires stoch
control in another bank 1t be prohioited
from voting that stock IN the main OF
ganizaton.
Much study on the part Of the commits
sion. however. has failed TO suggest any
provision which would be Impossible oi
evasion. Solicitor General Lehman VINO
conferred with the commission at the re-
ouest of President Taft, was OF the opinion
nat sucb provision would present so
many difficulties that It would detra't
fror. the general plan. Secretary Mac
Veach publicly declared in favor Of such
rrovision Chairman Aldrich has asked MT
MacVeagh TO suggest one.
To-day Mr.. MacVeagh wrote Mr. Alnrlc"
that he thought it was Of great importance
that the commissions plan of reform
ebon,d include the prohibition against one
hank holding stock in another, directly o'
,rdirectlv. He said he had not had time
20 frame a provision Of law as requested
nv the commission. The truth Is thf
eacrotarv added. u am not in the spirit
of writing monetary laws, as you are ana
mine would be hut an apprentice hand any
way
Nr aldrtch and his colleagues maintair
that control Of the main organization w'ul'
,.. .rpos-ihle because Of the provision
o..,.r -catters the representation anon!
.fr,sr districts and distributes the oalanc
af power an over the country, rather thar
f., ,Be financial districts.
II any workable plan of defeating inter
r,lrfncs Of stocks can be devised no"
ever. n viii find a place I'm the commission
,ernrr ae an additional safeguard.