Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-09-04
WADE TALKS ON
CURRENCY
BILL
THE ST. LOUIS BANKER, AS A
PUBLIC SPIRITED CITIZEN, NOT
AS A BANKER, TELLS THE
SENATE BANKING COMMITTEE
DEFECTS OF BILL.
WANTS BANKERS ON
FEDERAL RESERVE BOARD

! Washington, ID. e., Sept. 4.--FeSluS
iJ. Wade, OF the Mercantile Trust com.
Ipany of st. Louis, one of the represen-
tatves of the Chicago Conference of
Bankers, told the senate banking com
mittee today that the administration
currency bill would put the whole bur
den of organization on the CONNER
cial banks" of the country.
The national banks are simply the
commercial banks moving the mer-
Echandise and the commerce of the
nation" he said. This bill, in its
principles, ignores the great banking
strength that has really developed
the country-the state bank and trust
companies that have financed building
land development, farming and inter
nal improvements.
inducements necessary to draw IN
the state and national banks had ap-
parently been lost sight of, he
thought.
Wade declared the issue of cur
rency and the handling Of the bank
reserves should be divided and not
ioined, as in the new bill. 1t would
be fatal economic mistake for the
government to issue the currency OF
the nation" he said. Because it
would put the government in debt just
that much more than is necessary
He declared the bankers appeared,
not as bankers, but as public spirited
citizens, in urging the change
we say: Don't put the credit of
the government behind this great is
sue Of notes. The time may easily
come when the nations credit Will
need all the strength it can command
for emergencies.
"As to trust companies and state
banks that would be admitted under
this bill to participation in the new
system" he said. q think most of us
will stand back and wait to see what
the national banks gain by being
members of the federal reserve
banks"
The witness declared the banks did
not care to own the stock of the re-
g.onal reserve banks and would be
entirely willing that it should go into
the hands of private subscribers.
Throw the doors open to anybody
who wants to own this stock" he SAID
emphatically. I'VE don't want it; we
will take it if you don't force us to,
and make the plan attractive enough:
but no banker would care whether he
got the stock or whether it went to
the public
The refusal of but 10 per cent or
the national banks in the different
sections of the country to join the pro-
posed system would make it impossl'
Bile to secure regional reserve banks
in the middle states and in the Pacific
coast states, said Mr.. Wade.
at is my opinion he said, that II
the present bill would pass today 1t
would be absolutely imperative to-
morrow. You have discouraged by its
force provisions the men who nave
built national banking up to its pres
ent development If you attempt to
put this bill through, calling for the
organization of twelve reserve banks,
each with minimum capital OF $5,'
100000 and contine the subscriptions
to stock to national banks, it is our
Judgment that the plan will be un-
successful
Mr.. Wade endorsed suggestion
made yesterday by Senator Weeks,
Republican member of the senate COM
mittee, for the selection Of a list oil
fifty or more men, by the banks, from
which list the president might appoint
the four members he selects to serve
on the federal reserve board.
What we want is banking expert
ence, credit experience and financial
wisdom on that board he said, we
care not trust the entire control OF
the financial structure of the country
to cabinet officers. whose time al
ready is occupied from dawn to dark
with matters of routine administration
Ct their departments.
The kind of national paper cur
rency the American Bankers associa-
ton would like established in place
of the United States treasury notes
proposed by the administration cur
rency bill was outlined to the senate
banking committee by bankers who
declared they did not favor asset cur
rency or notes secured by the general
credit of individual banks because of
the danger of wildcat banking