Evening star., 1913-10-08
Currency Bill Discussed.

The presentation Of the report alb
sorbed the attention Of the delegates
today. The report was read by the
chairman Of the commission. It was
followed by a discussion Of the currency
bill, led by members Of the commission.
Arthur Reynolds of Des Moines, Iowa,
first vice president Of the association,
presided. In his opening address he at
tackled the currency bill as IAN invasion
Of the liberty Of the citizen in the con-
troll Of his own property"
Later in the day a. brief men memorial
paid to the memory of Charles H. Hut
tig. who died soon after his election
as president Of the association last year.
Report Of Committee.
In part the report reads as follows:
1.-THE bill in its present form imposes
unwise hardships upon the banks. and
equally unwise hardships upon the gen.
eral public. The interests of the bank
ers and commercial public are coinci-
dent; no injury can be inflicted upon the
one without the other also suffering.
When business is active and prosperous.
the banker shares in the benefit when
1t is languishing. he feels the Ill effects.
The chief function of the banker Is to
loan his capital and other resources to
his customers SO that they may increase
the activity and extent of their business:
Any withdrawal of the banks capital
from these legitimate channels Of trade
not only entails loss to the banker,
but also to the business public.
1.-THE banks are required to subscribe
to the federal reserve banks an amount
equal to 20 per cent of their capital,
one-half of which must be paid in at
once the other half being subject to call.
This is to be taken over and placed un-
der the management of a corporation In
H1y, ,0t w~.t-
ity representation, but a very limited
voice; indeed In return for. the capital
thus appropriated the banks receive q
certificate, which cannot be sold, as
signed or hypothecated. over which none
of the usual rights of property can be
exercised The banks are obliged to
make this subscription or be dissolved.
Charters have ever been regarded in the
nature of a contract, and 1t is doubtful
II, under our Constitution, Congress can
take away the charter of a bank in this
summary manner, not because the terms
OF the charter have been violated by the
banks, but because the bank manage
ment might refuse to make a coerced in
vestment such as the pending measure
provides.
Cannot Receive Money.
There is no provision whereby a bank
which subscribes money to the capital of
the federal reserve bank can recover the
same. except by liquidation, either volun-
tary or enforced. A bank is given a maxi
mum return of per cent upon capital
subscribed-if earned. II the government
can appropriate one-tenth of a bank s
capital in the manner provided by this
bill, they may appropriate one-tenth next
year. and so on until the capital Is all
transferred othe government bank. II
they can fix the compensation at per
cent this year, they may make 1t per
cent next year and per cent, per cent
1 per cent, or nothing-a very simple and
easy process whereby the entire capital
of the banks may be transferred to the
government.
"There are a great many different kinds
of, socialism,; but however the various
theories differentiate, they all agree upon
the fundamental proposition that the gov
ernment, that is, the community as a
whole should own all the real estate ALI
manufacturing enterprises, all banks ALI
transportation companies-in short. Ali
money making utilities. This proposition
of the government to take the banks
capital in the manner provided carried
to the extreme. would easily accomplish.
so far as the national banks are concern
ed this contention on the part of the So
cialists. For those who do not believe I'm
socialism ii is very hard to accept and
ratify this proposed action on the part of
the government.
There are other provisions of the bill,
equally important and far reaching i'm
| their effect.
1--WE have recounted the condition which
! confyouts VI a. to that provision Of ths