The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-07-03
CRAWFORD UPON
CURRENCY Bull
SOUTH DAKOTA SENATOR SANS
THERE Is NO OCCASION FOR
HURRY AND WANTS NUM-.
Der OF CHANGES.

Sioux Falls, S. D.-Reform that is
satisfactory in u considerable degree
to large city banks but of limited
benefit to smaller financial institu-
ions and. in many respects actually
harmful, is proposed in the currency
and banking legislation with which
congress is now concerning itself. in
the opinion of United States Senat-
OF Coe /. Crawford. This is the sen
ator's conclusion after studying at
length the draft of the measure hand
ed him before he left Washington and
unless the Objectionable features
have been stricken out. amended or
modified since MIR. Crawford depart
ed from the capital, the less precipi-
tate haste used in bringing about cur
rency and banking reform, the better
for the broad interests of the coun-
try, he said while in Sioux Fall" yes
terday.
Weak Spots in Bill.
The last draft of the currency
bill which i saw last Monday before
leaving Washington to spend the 4th
with my family in Huron, contains
many good things, but it also con
tains some awfully bad things in my
opinion, the Senator said. lit may
have been changed some. however.
since | left. For instance, the copy of
the proposed bill furnished me makes
it, not optional, but compulsory, that
all national banks, to the extent of 20
per cent of their present capital. sub
scribe to the stock of a regional re-
carNn hDD1. op,j II ,i,tnx.. ,hn+ ,o,;,,
al reserve bank the power among
other things to discount notes and
bills in the open market for individ-
uals and notwithstanding banks as
we'll as for member banks; and it
limits the dividends paid to the sub
scribing banks to 5 per centum: the
balance of net earnings is carried to
surplus until that reaches 20 per cent
after which all the earnings are taken
by the government in the form of Il
franchise tax.
Good for City; Bad for Country.
Il can see how such a reserve bank
could be of value to the great city
banks OF the country in giving to
them a place to unload their bonds;
but | cannot see why a small country
national bank whose capital is fully
employed at home and which is safe
ly managed and paying a fair divid-
end to ITS stockholders. should be
TO subscribe 20 per cent of
lite capital to a big reserve bank sew
eral hundred miles AWAY bank
which may, indirectly, become its
competitor-and upon its investment
in which it can receive no more in
any case than 5 per emf dividend.
Should be Optional.
1t ought to say the least, to be OPP
tional with it whether to require its
stockholders 10 dig up this 20 per
additional capital or not, uul
in the bill OF which 4 copy was fur
nished me it is a compulsory matter
and the penalty for failure to sub
scrihers is dissolution.
again. under this new draft of the
bill of which ! have a copy these re-
gional reserve banks are placed un-
der the absolutely supervisory control
of a political board appointed by the
president OF the United States and
confirmed by the Senate-consisting
of V members of which only II
need have had any practical eXper-
fence in banking and currency mat
tiers. and none of whom shall have
any financial interest in the banks
thus organized.'