The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1913-10-08
NATI0N'S BANKERS BITTFRT
OPPOSE TIE CURRENCY BILL
Commission Of the National
Association Assigns Nuns
Der of Reasons.
GO OUT OF BUSINESS
Or Subscribe One-Fifth Of
Capital Stock to Federal
Reserve Banks.

commission OF the American Bank
ers' Association, reporting today TO-
the association in convention mere.
asserted that it favored the old Ma
tional Monetary, Commission bill.
and opposed the currency measure
now before Congress, for theSfoilow-
ing prime reasons;
Because under the old plan In
vestment by bankers in the stock Of
the Central Reserve Association was
elective, not compulsory. whereas.
under the proposed Blli bankers must
subscribe one4ffth Of their capital
hstock to the federal reserve banks
banks or go out Of business.
Because under the old plan money
invested in the stock OF the Central
Reserve Association was under the
control of the banks investing,
whereas, under the proposed bill the
Federal Reserve Board. dominating
the reserve banks, was without the
bankers control.
Because such control by bankers
denied in the proposed bill-was
guarantee against political domina-
tion and incompetent management,
two important respects wherein tho
pending measure is lacking"
The report Of the commission Is
signed by A. Barton Hepburn. chair
man of the Chase National Bank OF
New York, as chairman of the COM
mission; james B. Forgan, president
of the First National Bank Of chica-
go, vice chairman, and the follow
ing members Of the commission:
Festus j. Wade, president OF
Mercantile Trust Company, st. Louis;
Joseph T. Talbert, vice president OF
National City Bank, New York; G.
NJ. Reynolds, president Continental
and Commercial Bank, Chicago;
John Perrin, OF Perrin, Drake and
Riley Inc, Los Angeles, Calf;
Luther Drake, president Merchants
National Bank, Omaha; Sol. Dexter,
vice president whitney Central Ma
tlonal Bank, New Orleans; Robert
Wardrop, president peoples National
Bank, Pittsburg; E. f. swinney,
president First National Bank, Kan
sas City, Mo-; Joseph A. McCord,
vice president Third National Bank,
Atlanta; ]. F. sartorl, president OF
Security Trust and Savings Bank,
Los Angeles; Levi L. Rue, president
Philadelphia National Bank, Phila-
delphia; E. L. Howe, vice president
Princeton Bank, Princeton, N. ].
In part, the report reads as fol-
lows:
"The bill in It's present form inn
poses unwise hardsh4ps upon the
general public. The interests Of the
bankers and commercial public are
coincident; no injury can be inflct-
ed upon the one without the other
also suffering. When business is
active and prosperous, the bankers
share in the benefit, when it IS
languishing, he feels the ill eifects.
The chief function Of the bankers is
to loan his capital and other re-
sources to his customers SO. that they
may increase the activity and extent
of their business. ANY withdrawal
OF the banks capital from these le-
climate channels of trade not only
entails loss to the banker. but also
to the business public.
"The banks are required to sub
scribe to the federal reserve banks
an amount equal to twenty per
cent of their capital, one-haIf OF
which must be paid at once. the
other half being subject to call. This
is to be taken over and placed I'M
der the management of corpora
ton in which the banks have not
only minority representation, but
a very limited voice indeed. In re-
turn for the capital thus appropri-
ated the banks receive certificate,
which can not be sold. assigned or
hypothecated, over which none OF
the usual rights OF property can be
exercised. The banks are obliged to
make this subscription, or be dissoly-
ed. Charters have ever been regard
ed in the nature of contract, and
II is doubtful II. under our consti-
tuition, Congress can take away
the charter Of a-bank in the summary
manner, not because the terms OF
the charter have been violated by
the banks, but because the bank
MANAGEMENT might refuse to make
- r,Es-.--a s&,.rirlt,.ts.a - ...... - 49,