New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-07

That Section Il of the bill should be
amended in so far as II refers 10 matlers
pertaining TO exchange. We suggest tha'
Section H. page 80. be amended by eliihl'
mating the last word on line 10, the nrst
Ave words on line is and the balance OF
the section after the eighteenth Hhe,
leaving the last paragraph Of Section ]"
10 read as follows:
at shall be the duty OF every federai
reserve bank to receive on deposit NJ
par. and without charge for exchange u
collections, checks and drafts drawn by
any Of its depositors upon any other ue-
positor. and checks and drafts drawn y!
any depositor in any other federal reserve
bank upon funds to the credit OF SAID de-
positor in said reserve bank last men
toned
Exchange profits represent a large
part of the total net earnings OF country
banks. II is proper charge for falr
| service rendered. The bill as now drawn
will decrease the net earnings OF the aver
age country bank by not less than q per
1 cent, and many OF them much more.
] This gain will not go into the pockets OF
the business men of America. but will be
enjoyed solely by the banks Of the col
lection centres. which are now making
satisfactory profits. The result of this
section will be to take income from banks
that can least afford the loss and give
this money TO banks that are already
earning satisfactory profits.
I'm addition to the above. the bill pro-
vdes a radical change in the method of
handling country items. 1t provides that
| they shall be cleared and not collected.
| To accomplish this it would require that
the small country banks keep in the fed
eral reserve banks an amount I'm excess
Of their legal reserve sufficient TO care
for their clearings from two to six days.
depending entirely upon the distance and
time they are from the bank acting as
such clearing house.
That whatever percentage OF reserves
is agreed upon should carry with 1t the
right 10 keep not less than one-third OF
such reserves with approved reserve
agents I'm fiscal centres. The reduction
of reserve from 10 to IL per cent is no
real advantage to the country bank. Very
few country banks can do business with
out having a larger amount of funds
either in vault or with nearby connec-
tons These connections must be main
tanned after the passage OF this law. The
money so held by them should be counted
as a part of country bank reserves
This means that the great majority OF
country national banks must surrender
their charters or retire from business.
The exchange and savings sections of the
bill will so reduce our earnings that most
,,-gn ,l,x
losses instead of the reasonable profits
we now enjoy.
I'VE desire to do our full duty 10 the
country, but our duty 10 stockholders and
customers must not be disregarded. we
desire TO become members Of the federal
system and assist I'm making II the sue
cess il ought to be and can be made
I'VE earnestly call upon Congress 10
consider this resolution as a formal eX-
preston Of opinion on the part of the
country bankers. who realize the serious
ness OF the situation that now confronts
them.
And finally we ask for the committee
that will present these resolutions to the
Hon. Robert Loven. chairman, ana the
Committee on Banking and Currency OF
the United States Senate an opportunity
to lie fully heard i'm the premises.
The executive council OF the Bankers
Association met this afternoon with the
chairman. T. J. Davis. of Cincinnati. pre-
siding Reports. which are TO be SUP
mitted to the main convention, were pre-
scented and passed. and several communi-
cations were referred TO special COM
mittee for action and presentation 10 the
convention.
A matter Of special interest before the
council was the acceptance Of the report
on revision of the constitution. Two pro-
posed changes are meeting opposition
The trust company section has been fight
ing against the reduction Of its represen-
tation on the council from three members
TO one member State secretaries and
institute sections are also disturbed over
the constitutional revision because Il
would reduce their representation in the
council from two members TO one member
each.