New-York tribune., 1913-06-27

7
operate as state banks or trust COM
ranles II this were generally done It
would destroy the effect OF this legsia-
ton"
Reserve Board Worst Feature.
Senator Weeks declares that the worst
feature OF the bill IS the federal reserve
board as constituted and the eXtrava-
CANT powers given II. and adds: Il am
uralterabIy opposed to anything when
savors OF political influence having any
connection with our bapkins system. IL
tie seven wisest men In the country were
selected for the positions pgposed in t7is
bin they could not fail 10 DE Influenced
IN their actions either by political consiG-
erations or locality interests. The bill
does not provide that these men shal be
technical banking men. or even that my
shall have had a banking or business eA-
per.erce. with the single exception that
Il does provide that one Of it, members
shall have had banking experience.
1t is not. however. the character OF
the board which deserves severe criticism
so much as the great and dangerous
powers given II. There IS vested In this
board greater power. and OF more
ceu,ralizlug tendency. than has ever
been proposed for any organization by
any party At any time. either In this
country or abroad. II Is not merely
superylsory board. IL IS a board IN tho
hands OF which are placed the deterrlI-
nation Of the policy OF at least twelve
%
third OF the reserves OF all the banhs
I'm the districts which they serve. which
are 10 be government depositorles, and
which in tho final analysis are 10 be
the sheet anchor Of the banhpg system
In the section OF the country In which
they are located"
Senator Weeks cYiticises at length
what he believes 20 be dangerous powers
in the hands OF the reserve board. lie
objects 10 the power of indicating in
which bank government deposits shall
be placed, the power 10 make the rate
OF interest which shall be charged by
each federal reserve bank. and for each
class Of paper; the power TO suspend any
and every reserve requirement specified
in the act, and the power 10 suspend
the further operation OF any regional
bank and appoint a receiver therefor.
Discount Requirement Bad.
one Of the most RECKLESS provisions,
! in the Massachusetts Senator's opinion.
is the power given TO the reserve board
10 require one federal reserve bank to
discount the paper OF another.
1T almost goes without saying" he
declares, that no board should be pro-
vided With such arbitrary powers in any
countrywide business. but when It
comes TO the delicate question OF bank
| ing. currency and credit giving any
such authority is inconceivable folly.
while the regional reserve banks pro-
| posed In this bill will undoubtedly be OF
advantage TO our banking system" Mr..
Weeks continues. the method proposed IL
not. in my opinion, in any single respect
superior to one national reserve organl-
cation whatever Il may be called. and In
many respects II is distinctly inferior TO
such an organization especially in the
canacity 20 help the different sections OF
| the country in time Of need. in the means
Of maintaining the country's gold supply
and IN the automatic features which
might be provided in the larger and
stronger organization through which to
| issue circulation"
The Senator says nc is opposed 10 the
issuing OF Treasury notes In any form
except I'm times OF the greatest distress.
and ne would have the outstanding
greenbacks retired. II. however. the
!5O0Oo0.OOO Treasury notes provided for in
the bill are to be issued. Mr.. Weeks In
sists that better methods should be made
for thdr redemption.
THE issuing of currency should not be
at the whm or the say-so OF a political
board In Washington. but should depend
upon the needs OF the commercial COM
munty which desires IT," says Senator
Weeks "If additional circula ton is
needed in North Dakota Il Ia not likely
that men located on, the Atlantic Coast
can wisely determine the necessity with
out an investigation which would ne
cessitate a dangerous delay In supplying
the needs OF the farmers and business
men in that state. In my opinion. the
great banker, or bankers, should deter
H!ihe the heeus OF tnAt section, ana the
| law should be 20 framed that they could
be supplied automatically and mechani-
cally by complying with its requirements.
What Mr.. Weeks Wants.
The wisest course we could adopt
would be to retire the greenhacks gradu-
ally retire all national bank circulation:
retire ALL silver circulation. except frac-