Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-16
HARPER IN favor
OF CURRENCY BILL
President of the District Ma.
tionaI Bank Supports Main
Features of Measure.
UPHOLDS THE FEDERAL
RESERVE BOARD CLAUSE
Believes Objections to Some Pro-
visions Should Not Condemn
Whole Bill.


trict National Bank. Is one OF the oificials
Of national banks Of this city, II not the
only one, who stand in support of the
main features OF the currency bill that
has passed the House and is now before
the Senate.
Mr.. Harper, In discussing the subject
today. frankly stated that there are some
provisions in the bill he would change
II he were In charge. but he was just as
frank in UNFOLDING the main provisions,
and especially those sections which ma
tional bankers a. Q fighting tooth and nail.
Relative to the three portions Of the
bill most Objectionable to the bankers.
Mr.. Harper said today:
1.-THE section Of the bill which has re-
ceived unrelenting and adverse criticisms
by many bankers Is that relating to the
federal reserve board The bankers are
Of the opinion that they. in some way,
should name the members Of this boa. d.
Holds Arguments Unreasonable.
THE arguments against this power be-
Ing given to the President of the United
States are no doubt honestly intended,
but think. to a large degree, unreal
sonable. If the banks to be regulated
closely to the judge selected for the pur-
pose of passing upon his own case. Ever
since the present national bank act was
enacted the banks have been under direct
control, by the provisions of the act. of
the Secretary of the Treasu: y and the con-
troller Of the currency, with limitations
only as to the powers vested in the
boards Of directors of each banking asso-
citation.
NOW as TO the membership OF the fed
" w.
be. I will state briefly the facts. The
Secretary Of the Treasury Is, as a rule.
or Is often. to say the least, banker
Of experience. and the controller has
the Secretary Of Agriculture, will con-
stitute the three ex-oficio members OF
the board. or the four to be named by
the President one must be a man of
more than two Of these four shall be of
the same political faith. To question
the President as to his appointment of
this board Is to discredit him as q true
and loyal American citizen. to say moth
Ing of the natural human desire of every
President to make his administration a
success. Such success can only be real
.zed by proper and honest enforce
ment OF law-by men of intelligence AMI
honesty; we should. therefore, be chari-
him credit for at least a desire to name
men for this board of at least as high
type as those of his cabinet.
Provision for Twelve Boards.
ITO really and practically manage the
affairs Of the federal reserve bank. pro-
vision is made for twelve boards of d.
rectors Of nine each, one board for each
Of the federal reserve banks. These
boards are given identically the same
power over their respective federal re-
serve bank as Is now given to the di
rectors of national banks over the bank,
and can see no more power given to
the federal reserve board than is now
vested In the Secretary OF the Treasury
and the controller of the currency. The
bill provides that six of the nine directors
OF each federal bank board shall be
elected by the banks owning stock In the
federal bank OF their section: three of
these are to be bankers three to be
business men, but in no way connected
to be chosen by the banks rega d ess
their capital. The remaining three are
appointed by the federal reserve board
but one of these three must be a banker
Of the banks by this plan are not en-
tirely ignored, and are certainly given
ample power for control and manage
ment-
serve board. see that thee are we'll de
fined rules. but limited control given /
over the federal reserve banks. Each
member bank deals directly with
the federal reserve bank In all mat
ters Of business The federal reserve
bank is given an Independent status. 1t
has the initiative In fixing rates or dis
count and the exclusive determinatio
the amount Of paper to be rediscounted
for member banks AS stated. two
thirds Of the members of the board of
directors Of the federal reserve banks are
elected by the banks in each federal re-
serve district, and each bank regardless
Of its size or capital is given one vote
in the selection of the directors Of the
federal reserve bank, and no greater
power is given the very large banks.