The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-11-05

The North Dakota Banker, the Of
ttial publication of the North Dakota
Bankers association, has secured
from several prominent bankers of the
state. statements of their views of the
administration currency act. These
opinions arc quite varied, some being
opposed to the measure, while others
2"e favorable to it.
The opinions cited follow:
Sees Loss to Banks.
Karl !. IHarup, cashier, First Ma
tiOnal bank. Park River, N. D.: The
Hwens-Glass currency bill, If it be-
rOmes law, will in my opinion mean a,
direct money loss TO the national
banks of North Dakota. 1t compels
us to invest an amount equal to 20
per cent of our capital at 5 per cent
and Contiscates q. considerable part of
our reserve without paying any inter-
est whatever. l see no advantage in
HE borrowing or ~rediscounting privi-
lcges offered. ! do not believe in the
finances of the nation being controlled
by a. political body.
Favors Executive Board.
Geo. H. HOLSTER, president, the
Northern Trust Co, Fargo: In my
opinion no North Dakota banker can
in~telligently discuss this subject ex-
cept from a selfish and biased stand
point. It Is too large d question. l be-
lieve should be allowed to 10
the best they know how. and see how
it works. l am in favor of a board
appointed by the president, whoever
he is, and accountable to the people,
rather than a board selected by the
banks, accountable to no one.
Condemns No Representation.
H. r. Graves, president, the James
River National bank. Jamestown, N.
D.: I am not in favor of tho Glass
bill for the following reasons: Re-
discount privilege not available for
northwestern country banks, haven't
the paper required, loss Of interest on
reserve deposited with federal reserve
banks, loss of exchange, double liabil-
ity on and forced subscription to cap
ital stock of federal reserve banks,
insufficient returns on the money In
vested (only 5 per cent?, and no rep
resentation for the bankers in the
management of federal reserve banks.
Class Of Paper Scarce.
II. S. Adams, president, First Ma
tional bank, Lisbon, N. D.: | fail to
see how tho currency bill, AS passed
by the house Of representatives, can
be of any possible advantage to the
COUNTRY banks. for the reason that the
average country bank has very little,
il any, of the class of paper required
as. security for loans: on the other
band, the holding up Of from 10 to 20
per cent of the bank's capital and a,
share of it's legal reserve without any
interest on the reserve balance and
My d bare possibility of dividends on
the capital invested for years to COME,
places the bank at a disadvantage
not only in earning power, but in the
amount of loanable funds.
The measure discriminates against
national banks and in behalf of the
- -I- - 49, r,N avail
country bank will be obliged to carry
with it's eastern correspondent a sum
equal to it's present average balance
for working purposes. Thus the
amount of reserve deposited with the
federal reserve bank will be dead for
practical purposes. The fact that the
entire control of the federal reserve
bank is to be in the hands of the
government and subject to political
change is in my judgment dangerous
to fits stability and to the interests of
the banks who have contributed it's
capital. The banks who contribute
the capital should have some voice
in the management of the federal
bank.
See Step for 5etterment.
Ed. Schulenberg, vice president
Farmers &. Merchants bank, Mandan,
n. D.: I believe hat the currency
bill now pending should be welcomed
by the bankers as a whole as it will
ultimately lead to something vastly
better than Dur present Anticipated
system. I fel that the proposed bill
will especially benefit the banks out
side OF the larger cites. Tho discount
privilege should BIZ extended to six
or nine months If possible 7 thin!
that the objections being raised to the
political character Of the reserve
board are not of consequence.
Country Banks at Disadvantages.
C.. B. Little, president, First Ma
tional bank, Bismarck, N. D.: I am
opposed to the measure mainly be-
cause 1t provides for political control
which In my opinion will prove as
unsatisfactory as it did in the days OF
Andrew Jackson. The bill also places
the country banks at a great disad-
vantage.
See Gorgeous Funeral.
/. II. Phelan, president, First Ma.
tionai bank, Bowman, NJ. d.: The
banking interests of this country a:
they are now suit me and have served
the country well.
Our wise men want elastic currency
We ought to have it but it must b.
~prudentIy handled.
over $500, 0O0, 900 American none.
Invested In Canada. Much more thar
that in Mexico now on the toboggan
Millions going into Investment Il
South America. We ought to be get
ting some of it back.
The OWens-Glass bill means infla
Go md widening 4 ln~vestEnensgg 9
saaaaRa