The Birmingham age-herald., 1912-01-05
TOSAVE THEPEOPLE FROM b|G BUSINESS Wall Street to Have Small
 Representation THE SOUTH Is FAVORED
THE SOUTH IS FAVORED
The Monetary Commission Gives Wall Street 10 Per Cent Representa- ton While They Have 30
 Per Cent of Capital

Washington. January 1.-The monetar. comfnission's plan for national reserve association when it goes to Congress oI Tuesday will provide for an organization so constituted that the financial institu tions of New York will control less thar 10 per cent of the total representations 1T the central association, although they pessecs fully 30 per cent of the bank capi tai.
 This has been done to guard against so called Wall street control of the pro posed institution which would largely sup. plant the United States treasury and per form the functions of a national fsca agent.
 The south with about 10 per cent of the barking resources of the country would control 23 per cent of the representation in the reserve association. New Englan1 with F per cent of the banking capital would have 8 per cent; the middle west with 20 per cent of the banking capital would have 30 per cent, and the far west ern and Pacific states. with about B pel cent of the banking capital, would contro approximately 25 per cent
 By prescribing such a method of or ganization it is expected to remove com pletely the possibility of control of the reserve association from any single grouT or set of men.
 Fifteen branch associations will be pro viled for. one in New England, two in the eastern states, four in the south, four 1T the middle west and four in the far west To control the reserve association it would be necessary to contrpl a majority of tho branches. This is held to be impossible
 Il has beer proposed that ownership oi bank stocks by other banks be prohibited and that any bank, a member of the re. serve association, be forbidden to owr any stock in another bank.
 It has also been proposed that wher bank acquires stock control in another bank it be prohibited from voting that stock in tho main organization
 Much study on the part of the commis- sion on the stock ownership point, how ever, has failed to suggest any provision which would be impossible of evasion. So licitor General Lehman, who conferred with the commission at the request oi President Taft was of the opinion thai such provision would present so many 'f'absHlties Hat is 's-ar1s >rt.-s-' froIl h. general plaii. Secretary MacVeagh pub. licly declared in favor of such provision Chairman Aldrieh has asked Mr. Mac Veagh to suggest one.
 Today MT. MacVeagh wrote Chairman Adrich that he thought it was of great importance that the commissions plan oi reform should include the prohibition against one bank holding in another d. reotly or indirectly. He said he had been extremely busy and had not had time to frame his ideas into provision oi law as requested by the commission "The truth is,' the Secretary added, q am not in the spirit of writing monetary laws as you are and mine would be but an apprentice, any way.
 Chairman Aldrieh and his advisers main tain that control of the main organization would be impossible because of the pro- vision which scatters the representation among. 15 districts and distributes the balance of power all over the country. rather than in the financial districts.
 If any workable plan of defeating in- terholding of stocks can be devised, how ever, it will find a place in the commits sion's report as an additional safeguard.