The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-07-14

should exercise a certain supervision
or control over the new system, in a
regulatory way, the farmers Of the bill
nave provided in it for the creation
or a federal reserve board of seven
members, which will include the secre-
tary of the treasury, the secretary of
agriculture, In the controller of the
currency, respectively, the four addi-
lona to be appointed by the president
OF the United States. b
1naSmuch as the three first named
would be members of the presidents
othclal family, receiving their office
through appointment by him. it will
be seen that the entire federal reserve
BOARD would be appointees of the pres
idnt; and since by the terms of the
plll itself not more than one of the
directors appointed to serve on that
board u be a banker of wide ex-
perience, thereby prohibiting the. sole
owners of the stock farm the right
OF representation, in fact, excluding
them from any participation in the
deliberations Of the board, bankers.
business men, n thinking people,
generally, regard this prohibition as
most revolutionary in character and
calculated to place our whole system
OF banking under the domination and
control OF a purely political board.
Political Partisians in Control.
"Inasmuch as it is made obligatory
upon the national banks Of the country
TO become subscribers of the stock of
the federal reserve banks (and it will
be necessary for the national banks.
generally, to comply with this require
ment If the plan becomes successfully
they would be compelled to subscribe
S20O,OO0, 600 of stock, one-half, or $780,
000, 0OO, Of which they would have to
pay in, and in addition they would. in,
accordance with the reserve ~reuire-
ments, upon which / will touch later,
pc compelled by law to- carry about
100000 600 of their reserves with the
FEDERAL reserve banks, over which the
Iederal reserve board, composed ex-
clus1Vely of the partizans of the par
ttcular political party in control. would
exercise a dominating Or controlling
power. Do you not think the people
or this country should deliberate upon
this fact and carefully weigh the pos
s1bilities involved?
Instead of offering a system suf-
hclently attractive within itself To
cause the bankers of the country to
desire to go into it on it's merits, as I
claim 1t should be, we are told we
must contribute approximately abour
$500, 600, 600 to its success, and, by
implication at least we are told we
are not worthy to- be represented on
the federal reserve board, %5""4 %
If the government can rightfuIfy
compel the banks to contribute this
vast SUM for this purpose, would it not
follow that it could compel corpora
tons doing an interstate business to
invest their funds for some other pur-
pose: y II so, how long do you think
there would be any capital invested In
enterprises over which this drastic
prerogatiye could be exercised by the
officials of the government?
Supervision Only Regulatory,
1T is one of the traditions of tha
Anglo Saxon, race and in accordanee
with the spirit of true Americanisrn
tnat capital must be managed by those
who supply it, and furthermore, that
the investor must be free to decide
whether or not he shall make invest
mentsi yet. we are confronted with a
plan which proposes to compel the
banks of the country to turn over to q
political committee virtual control Of
about $40, 900, 900. 900 of banking power
the result of fifty years of conscien-
tious labor on the part of the officers
Of $500 national banks in the United
States.
I want to say here and now that 7
am firmly of the belief the government
should have some supervision over tho
system OF banking and currency which
shall be established. but it should be.
purely regulatory and not OF an initia-
tive. administrative or controlling
character.
Since banks are only the ware
houses for the money and credit Of
the country, thereby providing places
to which the people may go either to
deposit their money for safe keeping
or TO-, secure credit to the extent 81
their needs against the money So left
whatever is provided for In a. banking
system that will be either beaeficial or
detrimental must ultimately fall with
full force upon the public. Whatever
assets a bank oWns in excess Of the
funds invested by It's stockholders arc
Ioffset by an equal amount OF liabilities
tn the public; therefore, n condition
which seriously disturhs the banking
business of the country to- the extent
of entailing loss or impairing general
business must be borne very much
more largely by the masses than BY
the banks; so the question Of the fail
ure pf this bill to provide representa-
ltion tor the banks on the federal re-
serve board is one which iii the last,
lanalysis lis of vastly more importance,
to b people than 1T Id to- the bankers
themselves.
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