The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-11-03
COMM 7 TEE IS
AGAINST PLAN
Of HITCHCOCK
Proposed Regional Banks
Will Not Have a Common
Capital Stock of $780,
100000, as Planned.
By InternatIonaI News servIes.

BY International News Service.
WASHINGTON, Nov. BY a vote
of to 4, after an allday discussion
of the methods of providing capital
stock for the regional banks, the SEN
ate currency committee this evening
voted down the Hitchcock plan for a
common capital stock of sl00,000,000
board
Two plans offered by Senator o Cor
man were then taken MP, but not dis
posed of One provides for half the
capital stock to be subscribed by the
banks and half by the public. The
other contemplates offering the whole
Of the stock to the public, the banks
TO underwrite any amount not thus
| taken. Senator o German prefers the
former plan. His plan also fixes the
! capital stock of each regional bank at
an amount equal to 10 per cent of the
combined capital of the national banks
in each region.
Concurrently with this phase of the
question today there was an animated
discussion over the subject of the con
troll Of the regional banks. Senator
O'Gorman favors the selection OF dl-
rectors of regionals, even with public
ownership of the stock provided in the
Glass bill, the banks to elect six and
hn f1In vi 10 ,,ne hrna
Chairman Owen also favors this plan.
Control of Regionals.
How these regional banks shall be
controlled is considered by the more
| radical members of the committee as
vital to the whole measure. 1t can be
stated on unquestiored authority that
| if the committee provides for bank con-
| troll as contemplated in the Glass bill,
there will be a strong minority report,
and the bill Will 20 TO the senate with
the committee divided and a minority
determined to fight TO the end against
anything that looks TO any degree of
| bank control,
Senator Bristow, after the committee
adjourned, protested against the adop.
tion of this provision of The house bill.
| "What we are attempting to do is
TO give the people relief from the op.
|
credits of the country. If the banks
are given authority to elect the direc.
tors of these regional banks, they will
| still control credits and there will be
no semblance of local public control.
will never agree to such provision.
O'Gorman's Views.
Senator O'Gorman, on the other
hand, holds that with six directors
chosen by the banks there will be bet.
ter and more efficient management OF
the regional banks, The interests of
the general public and of those need
| ing credits, he said, would be pro
| tected by the federal reserve board.
which would have the power of re-
moval of any board OF directors that
Disseminated against the public.
Senator Hitchcock, urging the adop-
ton of his plan. held that. it would
obviate the criticism of the pending
bill that required one regional bank
| to rediscount the paper of another.
With the S100,000,000 capital of the
regionals at its disposal ana the re-
serves that would be deposited with 1t,
the federal board, Mr.. Hitchcock said,
could shift a portion Of this capital
from one regional to another as 1T was
required to meet any situation that
might arise.
Next Meeting Wednesday,.
No definite action was taken on the
pending O'Gorman proposition. The
committee evidently believes that the
question of how the stock shall be pro-
vided and who shall control the bank,
is the crux of the whole problem, and
it may be several days before it is sat
isfactorily solved. There will be no
further meeting of the committee until
next Wednesday.
No attempt was made today to re-
consider the action Of yesterday in
adopting the four bank plan. The COM
mittee is apparently going ahead with
out regard for the opinions of the ad-
ministration and other branches of the
government. determined TO construct
the best possible bill 1T can.
Gossip from the neighborhood of the
White house today revived the talk
of caucus TO pass upon the bill. This
will not be tolerated by the senate.
Senator Kern. chairman of tho senate
caucus, stated specifically that there
would be no caucus on the currency
bill. Senator O'Gorman emphatically
announced that no caucus would be
necessary and none would be held. If
the president demands a caucus, unless
the present temper of the Democrats
of the senate changes materially, he
will fail in forcing his views upon the
Democratic senators.