The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-07-03
UPON
CURRENCY BILL
SOUTH DAKOTA SENATOR SAYS
THERE is NO OCCASION FOR
HURRY AND WANTS NUM-.
BIER OF CHANGES.

Sioux Falls, S. D.-Reform that is
satisfactory in u considerable degree
to large city banks but of limited
benefit to smaller financial institu-
tons and, in many respects actually
harmful, is proposed in the currency
and banking legislation with which
congress is now concerning itself, in
the opinion of United States Senat-
of Coe l.. Crawford. This is the e II
ator's conclusion after studying at
length the draft of the measure hand
ed him before he left Washington and
unless the Objectionable features
have been stricken out, amended or
modified since Mr.. Crawford depart
ed from the capital, the less precipi-
tate haste used in bringing about eur
rency and banking reform, the better
for the broad interests of the
try, he said while in Sioux. Falls yes
terday.
Weak Spots in Bill.
THE last draft of the currency
bill which / saw last Monday before
leaving Washington to spend the 4th
with my family in Huron, contains
many good things, but it also con-
tains some awfully bad things in my
opinion" the Senator said. 1T may
have been changed some, however,
since | left. For instance, the copy OF
the proposed bill furnished me makes
it, not optional, but compulsory, that
all national banks, to the extent of 20
per cent of their present capital, sub
scribe to the stock of a regional re
serve bank. and it gives that region
al reserve bank the power among
other things to discount notes and
bills in the open market for individ.
uals and notwithstanding banks as
we'll as for member banks; and il
limits the dividends paid to the sub
scribing banks to 5 per centum; the
balance of net earnings is carried to
surplus until thai reaches 30 per cen
after which all the earnings are taker
by the government in the form OF ;
franchise tax.
Good for City; Bad for Country.
Il can see how such a reserve banl
could be OF value to the great cit.
banks OF the country in giving t.
them a place to unload their bonds
but / cannot see why a small countr,
national bank whose capital is full.
employed at home and which is safe
" managed and paying a fair dlv1d
end to It's stockholders. should b.
/, compelled to subscribe 20 per cent o
> tie capital to a big reserve bank sew
> eral hundred miles away--a BAN
which may, indirectly, become 1t
! competitor-and upon its inVestmen
in which it can receive no more j
? any case than 5 per cent dividend.
should be Optional.
/ 1t ought to say the least, to be OF
: tional with it whether to require 1t
stockholders to dig up this 20 pc
cent additional capital or not, ~
in the bill OF which Il copy was ful
nished me it is a compulsory matte
and the penalty for failure to sui
scribers is dissolution.
again, under this new draft OF tt
bill of which / have a copy these T.
\ gional reserve banks are placed III
der the absolutely supervisory contr'
of a political board appointed oy II
president OF the United States an
confirmed by the Senate-consistln
9 of seven members OF which only OF
q need have had any practical eXpe
fence in banking and currency ma
:. tiers, and none of whom shall ha'
!, any financial interest in the banl
a thus organized