Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-22
HEPBURN SPEAKS
| ON CURRENCY BILL
0rIficises Administration Meas
] ure-Princeton Man at
Bankers Convention.

11lCAGO. aug. A1.-lu6 ANfatioiioi
conference of Bankers and members
of the Currency Commission of the
american Bankers Association
Opened here today with Keynote"
address by A Barton Hepburn, as
chairman. 1t was heard by repre-
sentative bankers from all parts of
the country.
He criticised features of the Owen
GLASS currency bill and advocated
"a. central bank with branches in
stead of regional reserve banks.
Many eyes were turned on George
IN. Reynolds as he entered the hall.
MIR. Reynolds. president of the Con
hinental and Commercial National
Hank, of this city, had just returned
IRON Washington, where he had
fiong conference with Secretary of the
n'reasury MeAdoo, with reference to
the currency bill and today's meet
ing.
He said that he might discuss the
Interview with the delegates before
the meeting was over.
Among the 200 or more bankers
,,1resent were Sol Wexler, New Or
sleans: Joseph A. McCord, Atlanta;
iLevi L. Rue, Philadelphia; Freder-
lick Il. Farnsworth, New York city;
nc. L. Howe, Princeton, N. j.; John
III. Gallogly, Albany, N. Y; Charles
s,f Crane, Baltimore; Alfred l.. Rip
ley Boston; Charles M. Preston,
gGharleston, S. C.; c. A. Hinsch, Gin
Itannati; r. w. Wardell, Cleveland
iGeorge IL. Russell, Detroit; -. A.
FLETCHER, Indianapolis; Ihomas S. +,
tT9enham, Jacksonville, Fla; Logan
&c. Murray, Louisville; S. u. Bogland,
memphis; James w. Little, Mobile;
William Woodward, New York
/ ,sharles Mcknight, Pittsburgh; r.
steerreI. San Antonio, Texas; William
M Davant, Savannah, Ga; s.. d.
fcarr Toledo; William j. Fletcher,
washington, d. c., and delegates rep
i11senting forty-eight State banking
dissertations and 173 clearing mousse
associations. -,
lHI think we should consider the bill
hopic by topic, or section by section, In
1.-THE spirit of helpful cooperation, ana
lsee IL we cannot aid the government
Tia accomplish wise and wholesome
Legislation. that will place our IN
sdustries and our people on par Win
sofher great commercial nations.
I tThis pledge of cooperation by A
sI3arton Hepburn in his speech as
chairman, was an evidence of the at
stitude the bankers are to maintain
in their consideration of the pending
sciirrencv measure. Mr.. Hepburn gave
thigh praise to the administration
for its earnestness in taking up the
ss1lbject. He commended many fea-
.tilres of the bill. but did not hesitate
TO Indicate that there were others
(which in his opinion needed revision.
THE failure to fully develop the
fcentral bank idea, which he said was
.rhcognized in principle. and It's con-
isequent effect on manv of the proVl-
.slons of the bill, was the criticism Of
igreatest emphasis.
Makes Centrai Board Necessary.
SThe establishment OF twelve banks
sihstead of one for the purpose OF
Infringing together the monev reserves
sof the country had made 1t neces-
tsarv in order to make these reserves
seffective to provide central board
with powers greater than would De
snecessarv for one central bank 20
'prssess. However. the recognition of
the principle. Mr.. Hepburn said, was
treason to rejoice.
LAS matters stand today he SAID,
H'whenever stringencv in the money
market exists, our TWENTY-FIVE thou
sand banks begin competing with
leach other to strengthen their cash
preserves. In doing so. they intensity
1.-THE stringency and aggravate the
trouble The disposition of bank man
layers to strengthen their individual
institution is natural and inevitable.
In viewing the proposed legislation,
sbne of the most natural questions
then is whether the establishment OF
these regional reserve banks Will
remedy or aggravate that condition.
.Wnl there not naturally and
inevitably be competition between
the regional reserve banks. competi-
ton between the twelve sections OF
the country, and may we not in the
Ind have competition for cash hold
sngs. between individual banks added
10 the competition Of section against
kection. reserve bank against reserve
bank?
Danger Is Recognized.
1.-THE trainers of the measure evil
IDENTIFY recognize that danger and
seek to palliate it bv giving to the
Federal Reserve Board the authority
to force one reserve bank to loan TO
another.
''Under the conditions that would
exist. would not the exercise of that
authority fail to accomplish the just
distribution of funds? Is there not
q strong probability that in exercis-
created that would endanger the
smooth working and permanence of
the whole plan?
with a single central reserve
bank with branches, reserve money
,lof all the banks deposited with that
central institution would count In
the aggregate. no matter with which
bank 1t was deposited. or through
which branch 1t was loaned. With
such a single central bank, the con-
+ trolling board would place its re-
serves in the section of the country
where most needed
This shifting of funds would be
ACCOMPLISHED without ostentation
and without notoriety. whereas IL
federal board should require, as it
might do under this proposed law,
one federal reserve bank to loan
money to another federal reserve
bank. that could not be done without
Attracting attention to the borrowing
locality in a wav that would operate
to the prejudice of that locality.
"On the other hand. how simply,
easily. and naturally. this apportion-
ment of funds would he made to fit
the requirements of different local
titles through the operation of one
central hank with branches"