The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-09-19
Declares Bankers Are Not Try
ing to Control Federal Re-
serve Board
ALL SEE NEED OF NEW LAW
Secretary Of American Bankers
Association Wants Ono
That's Workable.

tary OF tho American Bankers Asso-
citation. and secretary of it's currency
commission. who came to Richmond to
deliver the greetings OF the American
Eankers' Association TO the American
Institute OF Banking. now IN session
here. gave out last night a prepared
statement In reply TO Mr.. Bryan, chul-
longing the correctness of some OF the
latters assertions. and stating the po-
sition of the American Bankers Asso-
cations monetary commission on the
pending Glass-Owen bill
Mr.. Farnsw orth's statement follows:
While am an admircr OF the ora
torical and business ability OF Score
tary OF State Bryan and also have a
very high opinion of his personal char
actcr. ] cannot let go unchallenged
some OF the statements made by him
in his address before the American
Institute OF Banking this afternoon.
Without question. Mr.. Bryan is very
much interested in banking and cur
rency legislation. and particularly
some of the fundamental principles OF
the Glass bill as IL now stands before
the House.
Agreed to Need.
Mr.. Bryan made many good points
N his address which will appeal to
tair-minded men. We all agree that
wc are BADLY in need OF banR.ng ana
currency legislation, and the bankers
generally Will welcoms such legisla-
ton If bill is submitted which is
workable and is not unjust TO the great
banking and commercial pursuits or.
the nation.
Secretary Bryan's statement that
the banking interests OF the coun-
try were cndeavoring by their influence
10 secure control of the proposed Fed
eral reserve board is not statement
based on fact
The currency commission of the
American Bankers Association Is fully
authorized 10 act for the ASSOCIATION
In matters of this Kind, and. since the
hrst administration bill was brought
out. under which the government, has
absolute control OF the Federal reserve
banks the bankers generally have
asked only for a minority representa-
zion.
Work. OF Currency Commission.
The currency commission met at
Atlantic city IN June ana appointed a
committee 10 meet at Washington ana
present ccrtair recommendations These
recommendation suggested minority
representation on the Federal reserve
board.
M The currency conference. held in
Chicago. where the action was unanI-
nous. tho same recommendations were
made. and the conference committee,
which attended the hearings In Wash
recommendations.
LAS the Glass bill stands to-day. 81
provides that the Federal reserve
board shall be composed OF the Sccrc-
tary OF the Treasury. Secretary OF AZ
T;culture and the Comptroller or the
Currency and four members chosen by
the President OF the United states by
and with the advice and consent OF the
Senate. These appointees shall repre-
sent various sections OF the country.
shall be nonpartisan and one shall lie
experienced In banking. Or. In other
words. IL is possible TO have the Fed
cral reserve board OF Scven members
with only ono banker.
Amendment Proposed.
The Chicago conference recon-
the Federal reserve bonrd shall hail
consist OF seven members includ-
members chosen by the President OF tho
United states with the advice and con
scnt of the Senate. and three members
elected by the directors OF the Federal
reserve banks Here is "A minority repre-
sentation OF three out of a board OF
seven.
The secretary did not explain why
In this Glass bill the national banks
OF the country are eventually compelled
TO put up 20 per cent OF their capital,
and with this capital invested In The
Federal reserve banks they will not
have representation. and can have
nothing whatever 10 say as TO the man
agement OF their money under the
Federal reserve board as constituted
in the Glass bill.
The bankers In all their sugges-
tons and recommendations have
heartily supported the administration
measure when It comes to supervision
of the banks and most radical exami-
nations.
Under the present plan does 1t seem
reasonable that proper provision has
been made for the expert experience
OF bankers? 1t cannot be better illus
trated than using this query; If you
were going to have n serious Surgica
operation performed would you employ
n plumber to do the work?
A Representative Action.
The secretary also made the state
ment that IL was only the large banks
of the country that were opposed to
the Glass bill ] would like to ask
the secretary what Of the Chicago CON
ference of bankers held a few days
ago in that city? This was voluntary
meeting. There were present at this
conference delegates from thirty seven
States, and it embodied III cities.
Every Southern State was represented
except Florida; most OF the Western
and far Western States. This was Il
representative gathering Bankers
from the small villages and towns. as
we'll as the cities. The action Of this
conference was unanimous against the
fundamental principles of the Glass
bill. Since that meeting there have
been meetings Of groups of bankers
in all parts of the United states called
together from country districts, and In
every case the action of the Chicago
conference has been practically ar
firmed
Says SimiIe Is Far Fetched.
when the secretary likens tho stu
alton to the relation of the govern
ment with the banks and the Interstate
Commerce Commission, il does not seem
to me that the propositions are in any
way identical and the smile is far
fetched.
The limited time which Secretary
Bryan had for his address might be
SOME excuse for his not more fully
discussing other fundamentals involved.
He stated little about the government
note issue. except in connection with
government control that in time OF
f,.t oil