New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-17
Country Bankers Almost Unani-
nous in Opposing important
Provisions of Pending
Measure.
CONT LIKE RESERVE BANK
Object to Tying Up 20 Per Cent
of Capital Stock for Small
Return and to the
Federal Govern
ing Board.
fFrom The Tribune Bureau.i

pending. the Democratic leaders of the
Senate have come TO he conclusion
that il will not be wise to try to force
Congress conside- the measure with
out a short respite after the tariff DILL
is disposed Of.
The prediction was made to-day that
the tariff bill would be passed by Sep
TENDER 1, and that Congress would
then take a recess for thirty days, re-
converting on October l TO take up the
currency measure. 1t is expected that
the President. realizing the reluctance
of legislators TO orolong their laoors
during the heat Of the summer, will fall
in with this plan.
Returns from country bankers TO
whom the currency bill was referred
for an opinion by various Senators In
dicate that the administration will en-
counter serious opposition TO its plans
unless they are materially modified.
Soon after the bill was made public
Senator Owen, chairman of the Bank
ing and Currency Committee, made the
assertion that the country bankers ia
vored il, though the larger bankers OF
the financial centres opposed it. Thou
sands of copies of the bill were then
sent out to the country bankers TO as
certain Nether or not this were true
Replies are beginning TO come In, and
so far almost without exception they
give evidence of pronounced dissatis-
faction with the proposed currency re-
form scheme.
Provisions Objected To.
The country bankers display
marked unanimity in o tecting TO the
provision that member banks shall
subscribe 20 per cent of their capital
stock in the regional federal reserve
bank. on this capital the return is
limited TO 3 per cent. Country bank
ers insist that this return is too meagre
and that they will be compelled to con-
tract their loans TO comply with the
provision.
against the federal governing board,
most of the small bankers opposing the
possible political complexion OF this in
stitution and showing a decided hostil-
ity to the plan of submitting them
selves and their interests TO it. The
provision for sarm loans is also char
acterized as useless.
Senator Owen, in his analysis of the
measure said of the prediction that
many national banks would surrender
their charters and operate under state
laws:
1--WE have taken infinite pains to as
certain the grounds of these objections
and feel justified in sa 'ag that there
is no reason to apprehend that any ma
tional bank will go out of the system
because of the provisions of this bill,
but that they will generally rejoice at
the opportunity afforded them Of hav-
ing a more stable condition in the
financial and commercial world"
From the replies so far received the
country bankers show disposition to
rebel rather than to rejoice. Several
say specifcal' that the national banks
will surrender their charters rather
than submit to the provisions in ques-
ton. Out of more than score of re-
plies one or two, which are obviously Of
a perfunctory character. indicate APP
prevail Of the Democratic bill.
What the Bankers Say.
The feeling of the representatives,
either presidents or officers, of national
banks in the following towns and cities
is indicated by these excerpts from
their criticism Of the bill:
Blue Earth, Mimi am wondering II
the Democratic party proposes practical
ly to tie the hands OF the bankers OF
this country so that they would be sub
ject TO a few politicians appointed by the
President. / suppose, however, that We
can get along with this feature in some
way. but the provision in regard to farm
mortgages for US Western bankers is
practically of no account. This bill will
cut down the earning power of every ma
tional bank I'm the country and, besides,
compel US TO pay the expenses Of the
new organization.
Waukesha, Wis.-Permit me to say that
II this bill becomes law In its present
form ii would precipitate panic without
delay.
Sioux City. Iowa.-lf under the provi-
sions OF your bill a national bank like
ours be required TO lock UP 20 per cent
Of it's deposit obligations, il would be
necessary in our case to add TO our pres
ent cash in vault nearly $4,000. Were
this done the country over surely il would
greatly curtai credit and greatly hamper
business.
Amherst, Mass.-So far as l understand
the bill We are heartily opposed to the
same. The compulsory subscription OF
the amount Of ~ per cent OF our capital
stock and per cent return on same does
not seem TO us to be an attractive propo-
sition. For country bank to have 10
keep the required reserve of per cent
in the regional reserve bank means lock-
ing up our balances. which will be of alb
solutely no use to us. Also, the privi-
lege OF rediscounting notes forty-fve days
before maturity is OF practically no value
TO US. This being country bank. our
paper runs four TO six months.
Would Surrender Charters.
Springfield, Ohio.-My general impress
sion Is that II this bill is enacted In its
present shape as being so pronouncedly
political. In pace Of commercial. in its
,,.Laup A. viii have "A tendency 10 In-