The Washington herald., 1913-08-24

Run IAob oNb.
mission" of the American Bankers AS
sociation- The form of the business came
as compromise. Harmony was the
theme. ''
Would Change GIass Dill.
The bill, as revised by the currency
commission and indorsed by the entire
conference. carries out the Forgan idea
by emasculating the owen-Glass bill in
spirit, while retaining its outward form
and legal verbiage, thus placating the
Reynolds faction.
The important changes in the Owen
Glass bill, as recommended by the con-
ference, include the following:
THAT there shall be not more than
five Federal reserve banks instead Of
twelve.
That many provisions of the bill ap-
plying to national banks shall be op-
tion instead of compulsory.
That national banking associations
which do not come under the provisions
Of the bill within a year shall not be
dissolved, as provided by the bill in its
present form.
That the Federal reserve board shall
consist of three members chosen by the
President, three members elected by the
directors of the Federal reserve banks
and the Secretary of the Treasury, in
stead Of four members chosen by the
President and three others to be mem
bers ex officio, the Secretary of the
Treasury. the Secretary of Agriculture
and the Comptroller of the Currency.
Advisory Council In Disfavor.
That the provision for a Federal ad-
visory council shall be eliminated, none
being necessary II the bankers are given
direct representation on the Federal re-
serve board, as recommended.
That sections OF the bill relating to
note issues and bank reserves shall be
rewritten entirely.
That the entire section relating to
savings departments shall be eliminated.
the bankers feeling that savings depart
ments now conducted by national banks
are interfered with in an Unwarranted
manner"
The above changes represent only
those upon which the greatest oppOsi-
ton is to be expected In Congress In
all there were eighteen radical changes
in important sections of the Owen-Glass
bill, leaving that document but an empty
shell, gouged of its meat.
The resolutions set forth that although
the administration bill has many excel
lent features, some of its provisions
would be likely to cause a credit disturb
ance. + amended in the manner suG-
gested, 1t was stated, a system would be
provided which would develop into a
great bulwark for the protection Of our
The hope of the bankers lay in their
sending their committee to Washington
with the unanimous backing OF their
and with a bill the same
length printed on the same paper. and
similar to the Owen-Glass bill. |
A general Undercurrent expressed doubt |
of the ability. of the bank lobby 10 put |
the bill through, though outward EXPIRES |
sions from the different individuals who |
ed in the fight were OF the utmost con- |
idenee.
Reserve Board Fight Likely.
One OF the changes which will precipi- |
ate a fight in Congress, 1t is believed, |
s the one relating to the Federal re- |
serve board. The bill now in Congress |
provides that the board shall consist |
If seven members, four appointed by the |
President, with the consent of the Sen
tie; and, eX officio, the Secretary of the |
Treasury, the Secretary OF Agriculture, |
md the Comptroller OF the Currency.
The bankers amended the act to make
he Secretary of the Treasury the only /
X officio member though the board
hould still remain at seven members
Three others are, under the amendment
o be appointed by the President with the |
onsent OF the Senate and the remaining
hree to be elected directly by the direct
RS OF the Federal reserve banks.
Close students Of currency reform de-
lare that the Owen-Glsss bill was pre-
ared in opposition to the banking inter-
SITS, to take from them the power by |
which they can discredit an entire ad-
by bringing on financial
anic.' and that Congress will refuse to |
hange the provisions made for the Fed
raj reserve board so as to lessen the
overnment control and return power to
he banks.