The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1913-10-22
CURRENCY BILL
PRACTICABLE
FAIRM0NT BANKER WRITES CON.
GRESHAM SHOWING UP
BAD FEATURES.
GEO. NJ. JACOBS TELLS HOW
WEST VIRGINIA BANKS
WOULD BE EFFECTED.
lCharIes Brooks SMITH

WASHINGTON. D. G.. Oct. 22.-
In a letter to Congressman Suthcr-
land, George NJ. Jacobs, president Of
the Peoples National bank Of Fair
mont, asks whether it would be ad-
visablc for the banks Of that city to
send delegation of representatives
to appear before the senate commit
tee on currency which is conducting
hearing on the currency bill. Aft
cr comforting with the chairman Of
the committee, Congressman Suther-
land advised Mr.. Jacobs that the
hearings will close next Saturday
and that all its time has been allot-
cd. but should somebody already
slated failed to appear, the Fairmont
bankers would be given that vacant
time, providing they were here ready
to take advantage Of the opportunity
to be heard. Congressman Suther-
land also advised Mr.. Jacobs that II
would be equally as effective II Il
brief we're prepared by the bankers
Of Fairmont setting forth their
views, which brief, if prepared and
sent. he would in person lay before
the senate committee.
In Ills letter, Mr.. Jacobs sets down
succinctly and clearly the reasons
why the bankers Of West Virginia
as class oppose the bill as it passed
the house, which were practically
the same reasons which caused the
three representatives from West Vtr-
ginia Sutherland, Avis aud Moss
to east their votes in opposition to
the Glass bill.
Damaging Provisions.
1--WE believe that there are three
very damaging provisions in this
ball" says Mr.. Jacobs, (which will
be detrimental not only to the banks
but to the business interests OF this
state.
"First-Thc requirement to set
aside 20Cs Of our capital for the saw
ings department would very serious
Is impair or tic up the capital Of the
banks as the profits on savings ac-
counts will not justify the extra cX-
pcnsc of conducting separate de-
partment by an additional organiZa-
lion which will be required.
"Second-The national banks viii
also entail very heavy loss i'll be-
ing required to deposit their reserve
fund in the reserve bank without in
tcrest.
"Third--AlsO the requirement Of
the national banks to invest 20 per
cent. of their stock in the reserve
banks at dividend OF per cent.
as we pay per cent. interest on a
very large amount Of deposits, and
could not afford to take stock IN an
other bank paying only ) per cent.
I'VE believe that these three fra-
turcs of the proposed law would very
seriously handicap the national banks
Of this community. They would not
only sustain a very heavy loss in
earnings, but their usefulness to the
business interests of the community
would be very seriously curtailed.
Would Surrender Charters.
"Thc result of such legislation
would no doubt compel many OF the
national banks to surrender their
charters and revert to state banks,
and if the national banks would takn
this step and surrender their United
States bonds. for which they paid
above par. at thu present market
price which Is 943I per cent. you rNn
readily see that direct loss OF many
thousands of dollars would be sus-
tanned by the banks of this state.
Frankly speaking it is my opin-
lion that the passage of this bill will
practically ruin the national banks
of this state. If We are forced to re-
vert back 10 state banks it means
that the banks of every state will be
operated under such divergent state