Devils Lake weekly world., 1913-11-07
NORTH DAKOTA BANKER GIVE
HiatoreA ss.issv
VIEWS ON CUKKtNJl Dill

bill now pending especially detrimeu-
tai to our country banks, compelling
them to maintain the large reserve
in Federal bank, without voice or
choice, which at no time can be ulti.
lied as an operative credit, as rule
not being in position to meet the req
quiremcnts of commercial paper. This
will compel such banks to maintain,
in addition, their reserve correspond
ent bank for such credit that may be
required from time to time, corre-
spondingly with drawing funds from
circulation in respective localities.
Should the bill pass without further
notifications, I fear many national
banks will convert into state institu.
tions.
Many other serious objections could
be cited would space permit.
Returns Not Large Enough.
G. D. Lord, president, Bank of Park
River, N. D.: am in favor of some
currency legislation at this time.
approve of the present measure in
most respects but think the returns
on investe, capital should be more
than S per cent; that the board of di-
rcctors should consist partly Of bank
ers, and that reserves need not be so
high i;7
Steele Has Objections.
II. II. Steele, president, First Ma
tional bank, Mohall, N. D.: Replying
to your circular letter on behalf Of
the bankers association and in regay
to the cp.ricn Of country bankers up
en- The GlassOwens currency reform
bill.
| am opposed to the scheme as pro-
posed for the reason that do not
think the remedy meets the condition
and gives a reasonable assistance to
the country affected by the bank, viz:
IT will require the country bank to
t1ke 20 per cent of its capital out OF
it's business and invest it in the capi.
tai stock Of the reserve bank at not to
!, eSccei! S per cont interest.
}, Further, it will require the country
| bank to keep reserve with the federal
reserve bank instead of with the city
} bank as at present and thereby take
the reserve deposits OF the country
!, banks from the use of the city banks,
who in turn now use it to loan back
i TO the country banks in times Of
aced.
1t seems to me that the legislation
, that is needed should be such as
would leave the system as far as pos
ihle as it now stands, and providing
for elasticity of the currency to the
, national banks and such state banks
, as would qualify, by allowing them
Q to issue emergency currency and re-
0 discount under restrictions, their bills
g receivable to federal bank. Said
r federal bank to have the power to
a issue greenbacks for such purpose.
o Provision being made by tax upon
o such emergency currency in such a
/ rate as would insure it's retirement
s at the earliest possible date.
f The provisions of the Glass. Owens
bill as to bills receivable of Dor.
d rowing bank is such that very few of
. the northwestern banks would be able
! to furnish, viz: 60 to 12O maturities
The most Of these banks make loans
due October to Dec. l each year
:. the only time when there is any
n money in the country to pay with
). Should the bank need assistance in
|. the early part Of the year, and it.
paper or bills receivable were &C
n per cent due in the fall, where would
+ it be able to furnish the required col
lateral to benefit by the democratic
}. programmed