The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-09

Washington. August s-The $780,
100000 of Federal funds about to be
deposited in the national banks of the
West and South to assist in moving
the crops, Will be Increased 10 sl5O.-
100000 If necessary. The desire of the
government to mobilize all the needed
cash of the public treasury in the agri-
the money stringency characteristic
of the crop moving period was com
municated to day to bankers of the
Central West. at a conference with
Secretary McAdoo and a ssistant Secrc-
tary john Skclton Williams, called by
the Treasury Department to make ar
rangements for the distribution of the
big sum.
While the representative hnanciers.
fresh from the marketing centres OF
the Middle States. welcomed the pros
pect of the proposed deposits. the
consensus of opinion, il was stated,
seemed to De- that s50.000.0OO would be
ample to meet the situation.
The dominant tone OF the bankers
expressed convictions was, the Treas
ury Department announced tonight
that business conditions were good,
DNt tHdN tHS pTOInlSed deposits would
relieve the usual strain. The thirty
one bankers gathered at the meeting
seized the opportunity to present their
views on currency legislation to the
government They urged two material
amendments to the pending Glass
owen bill-onc curtailing the powers
OF the Federal Reserve Board To con
troll the present bank system, and the
other essentially modifying the reserve
requirements of the measure so as I.
minimize the decentralization Of
stated. all but two of the thirty-one
bankers favored Immediate banking
and currency Legislation.
Regulatory BODY Only.
amendments to the bill were pro-
posed to Chairman Owen, Of the Senate
Finance Committee. after the confer
encc with the Treasury officials re-
gardinG the deposits. 1t was urged
that the Federal board reserve be de-
priVed of all powers of initiative lods-
ing that function with the proposed
advisory board composed of bankers
rms proposition would confine the ad-
ministrative activity of the Federal re-
serve board to the approval or dis
approval of suggestions from it's ad-
visory council. The bankers argued
that the Federal reserve board should
be stripped of administrative powers
and made essentially regulatory
body.
Strong criticism was made of the
reserve features OF the bill The bank
ers declared that as at present drawn
IT would decentralize credits to such
an extent as to impair business Sc
rousiy some maintaining that they
would be Obliged materially to decrease
their loans. They asked for n refimc-
tion of the reserve required of coun
try and reserve city banks and such a
relaxation as would permit the con-
tinuance of proportion Of reserves
win reserve agents as at present, in
stead of forcing these reserves into
the Federal reserve banks or keeninr
them in the banks own vaults.
Reduce Reserves.
Inc bankers suggested that the re-
serves for the country banks be re-
duced from per cent to IL per cent,
OF which per cent would be held in
with a Federal reserve bank and pcr
cent placed with correspondents. or
Kept in its own vaults or deposited
with the Federal reserve bank. They
recommended that the 20 per cent re-
serves for reserve city banks be re-
auced ,l TO Is per cent; per cent in the
banks own vaults per cent In the
Federal reserve bank. and per cent
with correspondent banks.
These recommends tons it was point
ed out, would result in transferring to
the Federal reserve banks only about
one-half the present reserve deposits
OF the banks with correspondents, in
stead of all of these deposits as con-
templated by the bill. The bankers ar
gued that Congress should go slowly
in changing the existing Capitalization
or credits
Senator owen promised to take these
recommendations under consideration.
Secretary McAdoo heard the Southern
bankers yesterday and will confer with
Far West representatives next Thurs.
day regarding arrangements for dis
tributing the deposit OF the $4,000. 900.