Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-11-17

surrender the first two OF heso toI
the federal reserve hunks pro bono
nnhlico. The third, however. forma|
most important part OF the business
~ city banks. In Chlcneo About co
per cent of national baiiR lrnoslis
~ composed Of these balances due lol
other banks II Is impossible To
state IN advance whet proportion OF
these deposits woild be transferred
% the federal reserve banks. but the
bil contemplated translcrrinl the
whole Of them. the transfer To be-
spread over a period Of three wears.
Vow bankers are as patriotic ar
other men. but they have built up
/. this business amid keen rompeutlon
ana ~ grcut expense. This bunk. for
example. In 1910 bought $4,000, 600
Of such deposits from the Hamilton
National bank, ana paid cash COM
sidcratiou OF $4,000 for them.
Moreover the number of the em-
pioycs, tho sisc Of the offices, the ex-
tent OF the loans, ana tho sigo az the
salaries OF the officers OF national
banks IN the cities have all been
predicatcd on tho possession Of thnt
business. SO the bankers are in
ciined 20 squirm when Il 81 proposed
80 takc i away from them. and they
modesiiy ask 60 he allowed 60 retain
haf OF ~ concoding the other hail
20 the federal reserve banks for the
general good. In other words, they
ask that country banks bn perufitasl
20 carry reserves of twelve per cent
Tour per cent IN their own vaults.
four per cent in the federal reserve
banks. ana -four per cent with their
reserve city correspondents: where
as the bill proposes that an the re-
serves. except those In their own
vaults De deposited with the federal
reserve banks.
IL any business men among our
readers are inclined 60 agree with
the sponaors for the bill. and cali
THIS selfish let them ask them.
selves how they would feel 10 the
government proposed 90 reform their
business by compelling them 10 trnns-
ier about fifty per cent ~ IL 10 am
other institution engaged la tho same
hnc. ana possible competitor. We
say possible competitor" because 10
's "a matter Of dispute whether Sec
ton Nv. OF the bill gives the federal
reserve hanks power so compete with
other banks In "opon market opera
tons We think 10 does Iiut there
BE- another side 60 this How ie the
contraction of national bank loans.
which the loss OF their bank deposits
would entail 10 DO accompllshod7
rms is serious question Tor tho In
forests Of general business CONNER
cial banking Is woven into the tex
turc Of an business and the severe
lnitini contraction OF bnnk LOANS
which is proposed could not fan to
nave disastrous effect Even with
tho rcdiscounting facilities afforded
hy the federal reserve banks. and tho
hearty cooperation of Tho bankers.
the problem would be- a dfnuut ono.
AZ forced upon tho banks against
their VIII We frankly do not See how
u C. uld De accomplished
There are other Textures OF less
Importance In the bin which thc
practical experience 81 IN. bankcrs
leads them 90 wish 10 see modified
But the provisions here discussed are
vital Tho bin as passed by the
houss world. Ina our opinion. pn To
settle aud Ia fact only lrritato the
currency problem. But tho worst
never happens ia this country. and
We have faith that tho earnest Of
forts Of the administration ana the
practical Wow of tho bankers viii be
harWonizcd la the bin which viii poo
finally signed by the president.
THE NATIONAL CITY BANK oF
CHICAGO.