The Washington herald., 1913-10-28
jerks OUTLINES
CURRENCY VIEWS
Professor Discusses Central
Bank Scheme Before the
Senate Committee.
PROVISIONS EXPLAINED
Under His Plan the Branch Institutions
Would Have Majority Control
by Bankers.
PROVISIONS EXPLAINED

Prof. Jeremiah W. jerks, of New York,
attended the executive session of the Sem
ate Committee on Banking and Currency
yesterday. The session was executive
only in name, and Prof jerks views
and digest of the revision of the Glass
Owen bill, which he furnished the COM
mittee, will be Incorporated in the hear
ings.
The coming Of Prof. jerks served to
postpone the first trial of strength Of
the administration and anti-administra-
tion members Of the committee, for the
time has come when the committee must
and, in the opinion of-the members, will
take definite action with regard to the
stand which the majority of the com
mittee must take with respect to funda-
mental changes in the bill.
1t is conceded by the friends of the
Vanderlip plan, and of the central bank
idea, that Senator Reed has gone over
to the enemy, bag and baggage. Senator
O'Gorman, still preferring the central
bank idea, with proper and adequate
number Of branch banks, is convinced
that there are insurmountable obstacles
of a legislative character which stand
between the committee majority and
final approval of the bill.
Statement by O'Gormnn.
The first business before the commit
tee will be the decision of the basic
question OF the bill-the Capitalization or
Decentralization of the Federal reserve.
There will be material notifications in
the bill as ii came to us from the House
The committee will decide this important
point first of ALL 1t will decide either
in favor os the central reserve bank or
a material modification OF the regional
bank plan There certainly will not be
more than seven banks, probably six
Senator O'Gorman has not as yet given
up hope Of the committee holding fast
to its Intention as shown last Thursday
to write into the bill the provision for
the creation Of the single central reserve
bank, with headquarters at Washington
and ten or a dozen branches of the Fed
eral bank in other sections of the United
States
The Republican members of the COM
mittee, unit for the central bank idea,
are counting on the continuance of the
support heretofore accorded this prin-
ciple by Senator Hitchcock of Nebraska.
Senator Hitchcock's position on the bill
leaves the committee at a tie on the
question OF reporting favorably upon the
Glass bill.
Question of Ownership.
Immediately following the decision of
the committee as to whether the central
or the regional system shall be adopted
the committee will discuss and vote on
the question of ownership. 1t is safe
to predict that upon this point there
will be a change from the Glass-Owen
bill. The public will be permitted to
subscribe for the capital stock of the
bank, or banks, but whether or not the
banks VIII be the subscribers first to be
accommodated and the pulic admitted to
subscribe for the residue or the public
is to be given the first opportunity to
absorb the issue is doubtful.
Prof. jerks plan for a central bank.
while accepting the Vanderlip- -Bristow
theory of a central bank with branches,
differed from its predecessor in the pro-
visions with regard to control Prof.
jerks outlined measure provides for rep
Tesentation of the banking interests on
the Federal reserve board, minority
representation, II is true. The branch
banks provided under the jerks plan
will have a majority control by the
bankers. This idea is not acceptable 10
Senator Bristow and is unlikely to find
favor with the committee.
Prof. jerks is in entire agreement with
the opinion of Senators that the ex-
officio memberships in the Federal re-
serve board accorded to the Secretaries
of Agriculture and Treasury and to the
Comptroller of the Currency should be
stricken from the bill.
The committee will resume its sessions
at IL o'clock today, and it is believed
that there will not be more than one
days discussion of the central bank
idea.