The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-07-14

to the federal reserve board for the
control Of our banking system lis YER
similar to that given to the interstate
commerce commission, but the Fact q
railroad has the right of appeal TO a
court provided for that purpose seems
TO me TO make the cases entirely dis
similar.
Powers Given TO Beard.
THE following are some OF the spe-
ciic powers given to the federal re-
serve board by the bill:
s"The power to require the removal
of he officers OF the federal reserve
banks:
"The power to suspend further OPP
erations of n one or all of the feder-
al reserve banks and appoint al recely-
er;
1.-THE power to make and promulgate
from time to time regulations govern
ing the transfers Of money, and the
power, If 1t chooses, to act as a clear
ing house;
THE power to order not less than
four examinations a year OF banks in
central reserve cities;
THE power to fix the salary Of the
federal reserve agent-such salary to
be paid by the federal reserve banks;
The power Of removal of directors
Of a certain class of federal reserve
DcsAAhcr AS IA tllCl4 op4AlloAs& LA1Sy NS
not represent the various investors of
that district;
THE power to use their discretion to
admit state banks to the system;
1.-THE power to reject members once
they are admitted to the system;
THE power to put the controllers
office under the jurisdiction of the sec
rotary of the treasury acting as chair
man of the federal reserve board;
The power to add to the number OF
reserve cities and the power to re-
classify existing reserve cities:
1.-THE power of discretion as to per-
hitting country banks to carry S ner
cent of their reserve with their CORE
s%pondents in reserve cities after the
plan has become operatives;
1.-THE power to control the note issue
with power to grant or to refuse to
grant the application Of federal reserve
banks for same;
The power to cause any member
bank Of a federal reserve bank to be
examined.
1.-THE bill originally gave the federal
reserve board the power to name the
discount rate of the federal reserve
banks In the various districts in which
they would be located, but, at the
urgent reuest of the committee of
bankers, they modified it by placing
the initiative upon the federal reserve
bank and giving the federal reserve
board the right of approval.
In addition to all of these especial
ly defined powers, the bill provides
that this board shall have the right
to perform the duties, functions, or
services implied as well az specified in
this act,
T do not believe the administration
seeks any such powers, therefore, in
&1n f~tA~n-4 80 49, 1A 80 +h4 hs1I
let 1t be so modified as to restrict the
powers of the board to those that are
purely regulatory, defining fully just
what power is vested in the board
rather than to leave the extent of it's
activity more or less an open question,
Bankers Seek Representation.
"The committee of bankers who
visited Washington asked for represen-
tation for the bankers upon the fed
eral reserve board, through having
that board enlarged from seven to
eleven members, the additional four to
be selected by the president from a
list of anne to be furnished by the
federal reserve banks, each bank to
furnish one name.>
This would give the government
sever out of the eleven members on
the board, and / can see no good rea-
oOl why SllCIS GlIoulu lhNS pSSA LIZ
objection to that plan. Failing, how
ever to secure representation on the
board, the matter might be adjusted
by a provision in the bill for the ap-
pointment of an advisory board of,
say, n from each district in which a
federal reserve bank would be located,
three Of which should have the right
to sit in the official meetings Of the
federal reserve board report it's
actions to the members of the adj
visory board, as in the case of the
advisory board provided for in the
Reichsbank Of Germany; but even with
the adoption Of this idea, the powers
of the federal reserve board should
be restricted and their duties fully de-
fined, and it should be restrained from
acting beyond such authority as is
specifically given to it.
1.-THE original so-called Official"
bill did not give consideration to our
national bank notes, the section cover
ing them having been dropped from
the tentative bill made public two or
three days prior to the time the official
bill was given out. but after a discus
sion of the matter with the committee
of bankers, those in authority rein
Continued on Page Three.