The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1913-10-26
RIVAL APPEARS To
CURRENCY MEASURE
NEW YORK FINANClER WOULD
SUBSTITUTE BIG BANK FOR
REGIONAL RESERVES.

Washington, Oct. PA govern =
ment controlled and operated central
bank, to dominate the financial sys-
TEN OF the country, entered the leg
islative arena today as a rival of
the administration regional reserve
currency plan. Frank A. Nanderlip,
president of the National City bank
of New York, explained the new
plan to the senate banking and cur
rency committee.
Under his proposal the government
through a board of seven members,
appointed for terms of fourteen years
and receiving salaries OF $4,000 or
$l7,500 a year, would establish a
huge bank with $1O0,000000 capital,
which would control financial con-
ditions by powers conferred on it
to issuse money to rediscOunt COM
mercial paper for banks, and to con-
centrate the reserve gold of the
country.
Mr.. Vanderlip pointed out that his
bill differed from the administration
plan in that it absolutely eliminated
the banks from participation in the
administration of the system, which
would control the issue of currency.
In the pending bill, the banks would
own the stock and elect six of the
nine directors of each of the regional
reserve banks, which would issue cur
rency. make rediscounts and hold
bank reserves under the control of
the federal reserve board.
Reed Favors Plan.
The Vanderlip plan differed from
the so-called Aldrich plan, proposed
by the national monetary commits
sion, in that the latter provided 60"
a central and subsidiary banks, own
ed and controlled by the member
banks themselves.
Senators Eristow, Reed, OGorman
and Hitchcock of the committee to-
night expressed themselves as in fa
vor cf the principle embraced i'll
the Vanderlip plan.
This is the plan Senator Hitch
cock and l have favored since con-
sideration of currency reform began
said Senator Reed. The only ques-
tion is whether it is not proposed
in concrete form too late to make
it advisable to alter so radically
the provisions OF the bill under con-
sideration."
The Vanderlip plan undoubtedly
will be taken up by the committee
in connection with the presidents
concession that the number of pro-
posed federal reserve banks could be
cut down from twelve, the number
fixed in the bill, without altering the
basic principles of the administration
measure.
Sees Shock for Bankers.
Senator Bristow said he favored
such plan because he believed it
would operate to prevent a concen-
tration of credit and money.
Mr.. Vanderlip said he had talked
over his plan with a few bankers
and that they favored it.
"Do you thing bankers generally
would accept it or would we have
another Boston convention if we
adopted it?" asked Senator Reed.
q think bankers generally would
be somewhat shocked at first by
the idea of absolute government con
troll" answered Mr. Vanderlip, "but
! think when they understood the
safeguards thrown about the ap-
pointment of the controlling board
and the quality of men who would
be named, they would accept it
with great favor"
After Mr.. Vanderlip has presented
his plan the committee heard Jacob
S. Coxey, General CoXey, of the
Army of the Unemployed" which
descended on the capital in 1898. He
urged that the government take