The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-08-22
Inkers From Forty-seven States
Gather to Organize Complaint
Against Currency
Bill.
HHY THEY OBJECT TO TT
ITjHIs MOTHER CONFIDENT.
Currency Bill Now Pend
ing Before Congress 10 to
Meet With Violent
Opposition.

United Press Leased Wire Service. ]
CHICAGO, Aug. 22.--violent opposi-
on to the Owen-Glass currency bill
pw pending before congress was de-
Jared by A. Barton Hepburn, presi-
ent OF the Chase National bank, New
fork, chairman of the currency COM
tlttee OF the American Bankers Asso-
lation who delivered the key note ad-
ress at the opening session today at
conference Of delegates from bank
pc and clearing house associations
hlled by the currency commission to
iacuss and formulate the objections
bankers to the bill. The bankers
Gill be in session two days.
According to Frederick Farnsworth,
'ew York, general secretary OF the
urrency commission. forty-seven
tates are represented at the meeting
i delegates from institutions hand
ling more than fifteen billions of the
pation's money. Western and south
krn delegates have a majority in the
tcnference, Farnsworth said. preclud-
ing the idea that the gathering is to
be Wall street affair.
The principal objections to the cur
fency reform measure now pending
before congress as stated by Hepburn
Today are these: The domination by
government Of the federal reserve
board which Is to control the banks
The regtonal reserve plan divid-
iHg the country into twelve zones eacl,
Ito have a separate federal reserve
/ bank instead of creating single
|sreat central bank as he advocated.
The provision making the govern
|nent responsible for the notes which
banks arr to issue
The proposed banking and currency
law contains many commendable pro-
visions, said Topburn. '.It creates a
central banl. It establishes branch
banking: It recognizes hank assets in
Efhe form OF commercial paper, as the
{normal and proper basis for bank cur
rency; It provides for keeping the cur.
rent funds Of the United States In
Current use instead Of locking the
ksurplus up in the sub-treasuries when
fever the income from taxation ex-
|ceeds government expenditures. But
while there is reason to rejoice that
|N force of sound principles has
|peen recognized, we must regret that
|the measure only partly embodies
these principles"
That feature of the Owen-Glass bill
which names as members of the feder-
|al reserve board the secretary of the
treasury, secretary of agriculture, con-
troller of the currency and four 9th
ers to be appointed by the president,
was severely criticized by Hepburn
and is expected to be provocative.
Bankers here for the conference COM
plain that such a reserve board would
be absolutely dominated by the presi-
dent and might in the hands OF an un-
scrupulous executive be made a great
political machine.
The question arises said Hep
burn, las to just what may be the OBJ.
1ect proposed in the new system which
may be regarded as inducements which
lead banks to go into it. They are diff
fcult to find and seem to be of a dis
tinctly negative character Banks are
required to furnish the capital to
Place the federal reserve banks in
funds with which to do business. They
are deprived of even approximate
control. Is there any reason why the
banks should furnish this capital any
more than any other industry? Is 1t
not fair to ask why the people as a