South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-08-09
will TRIPLE SUN
IF MORE IS NEEDED
Bankers From Central West
Told That Government is
Anxious to Avert Money
StringenCy This Fall.

WASHINGTON, Aug. 9.-The $780,
600. 600 OF federal funds about 10 be
deposited in the national banks OF the
west and south 70 assist in moving
the crops will be increased to $780,
600, 900 If necessary. The desire of
the government TO mobilize all the
needed cash OF the public treasury in
the agricultural belts Of the coun-
Try 10 avert the money stringency
characteristic Of the crop moving
period, was communicated Friday 10
bankers Of the central west at a con-
ference with Secy. McAdOO and As
sistant Secy. John Shelton Williams.
called by the treasury department TO
make arrangements for the distribu-
tiOn OF the big sum.
While these representative finan-
oters, fresh from the crop marketing
centers OF the middle states, welcomed
the prospect II the proposed deposits
the consensus OF opinion, 1t was stat
ed seemed to be that $4,000, 600
would be ample TO meet the situation.
The dominant tone of the bankers
expressed convictions was, that the
treasury department announced Fri
day night. was that business condi-
tiOns were good but the promised de-
posts would relieve the usual strain.
The u bankers gathered at the
meeting seized the opportunity to
present their views on currency legis-
latiOn 10 the government. They urged
two material amendments 20 the
pending Glass owen bill-One curtail-
ing the powers of the federal reserve
board proposed to control the reserve
bank system. and the other essentially
modifying the reserve requirements
of the measure so as 10 minimize the
decentralization of credits With
these changes, it was stated all but
two Of the 81 bankers favored i'm
mediate banking and currency legis-
iatiOn.
Amendments to the bill were pro-
posed 10 Chairman owen of the senate
finance committee. after the confer
ence with the treasury officials re-
garding the deposits. 1t was urged
that the federal reserve board be
deprived Of all powers Of initiative,
lodging that function with the pro-
posed advisory board, composed Of
bankers. This proposition would
cOnfine the administration activity Of
the federal reserve board to the ap
prevail or disapproval Of suggestions
from it's advisory council. The bank
ers argued that the federal reserve
board should be stripped Of admins
trative powers and made essentially
a regulatory body.
Strong criticism was made of the
reserve features of the bill. The
bankers declared that as at present
drawn IL would decentraliZe credits
10 such an extent that 1t would i'm.
pair business. some maintaining that
they would be obliged materially TO
decrease their loans. They asked for
a reduction of the reserve required Of
country and reserve city banks and
such a relaxation as would permit the
continuance OF a proportion of re-
serves with agents as at present in
stead of forcing these reserves into
the federal reserve banks or keeping
them in the banks own vaults.
The bankers suggested that the re-
serves for country banks be reduced
from Is per cent TO II per cent. They
recommended that the twenty per
cent reserverse for reserve city banks
be reduced TO rs per cent.