The Birmingham age-herald., 1913-10-29
VANDERBILT LONG
EXPERIENCE MAKES
HIM AN AUTHORITY
Meaning of His Suggestions
for Changes in the New
Banking Law
TO EXTEND TERMS
OF BANKING BOARD
II Members Served Fourteen Years
Board Would Soon Be Equal to
the Supreme Court in
Dignity
BY HOLLAND,

New York, October 2S.-(Special. )-Some
OF the comments which were occasioned
py the presentation to- the Senate bank
ing and currency committee by President
frank A. Vanderlip of a plan for a re-
'ised banking and currency system have
voiced feeling of astonishment that a
banker could, over night, so to speak,
nave formulated a new banking and cur
rency system. There are hints of this feel
ing In several comments attributed to
chairman Glass of the House commit
tee. If he Was correctly quoted he slrong-
~ intimatel that Ii could not In reason
te assum ed that a banker could prepare
IN a day or two a better bill than the
ene whien the members Of his commit
Tee has spent SO many days In earnest and
dil'gent attempts to perfect
The face Is, However that Mr.. Wander
lip has been for much longer time than
TWO or three days occupied in formulat-
ing In his own mind what he hoped would
iroYe IL be an adequate and therefore
satisfactory banking and Currency meas
1fe' lie has given a great deal of thought
10 the subject for years. He discovered
fhen ne was assistant secretary of the
treasury at the time Of our war with
spain some of the radical defects in the
national banking laws. His experience
lor some l5 years as an executive Of
rcer of The National Ci,y bank confirmed
tue opinion Which lie held while in the
treasury d,nni tmcnt.
When az. vl.ccilip went to Washing
ton IL give icstimony ts1c'e the Senate
Ranking arl currency 4 nnItte. his Iies.
ol Mfat whs Tr-ded tal thu United States
was banking and currency system when
will make an elastic currency possible.
responding automatically to the needs of
the people. He also felt that public opin-
ion and certain economic advantages
made 1t expedient, probably necessary, to
establish the banking and currency sys-
tenn In such manner as would prevent I'M
due concentration of credit or resources
at any one center. and would, on the
other hand. permit free and normal
and therefore entirely healthful, direction.
control and mobilization of credit
The Essential Principles
These being two at least of the essential
principles to be embodied in reform leg
fslation. there remained only the construc-
tion Of machinery or the great and nation
covering apparatus of banking by which
snese principles could be established in
fhe practical operation of national banks.
Mr.. Vanderlip learned long ago that the
majority sentiment of the United States is
opposed to the creation of any central
bank, whose control would be in the hands
OF bankers. Whether the view Is right or
wrong economically it prevails. Mr.. Van
derlip was therefore ready to recognize
and to yield completely to It,
The national democratic platform speaks
In opposition to the creation of a central
bank. But Mr.. Vanderlip was convinced
that this opposition was directed exclu-
sively against a central bank owned and
controlled by bankers. There could be no
more reasonable opposition to central
bank exclusively controlled by the gov
ernment than there is TO the office of
comptroller of the currency, which Is in
the exclusive control of the government
although the comptroller stands in inti-
mate authoritative relation with every ma
fional bank.
Therefore If central bank could be
organized under the exclusive control of
the government, possibly under exclusive
government ownership. then the vast ad-
Vantags which an institution of that kind
would possess so far as the people are
concerned from II as they are from the
direction of the United States treasury de.
partment.
Yielding this point or recognizing this
principle which the President regards as
fundamental-that Is to say, exclusive
government control OF the machinery and
apparatus by which national banks may
be organized and directed, Mr.. Wander
Ups experience and knowledge made 1t
possible for him to work out a plan
whereby the central institution could be