The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-09-09
THE BANKERS RE-
COMBINATIONS.

Springfield Massachusetts Republi-
can: The recommendations Of
changes in the banking and currency
bill by the conference of American
bankers at Chicago are presented in a
conc1liatory n tactful manner - a
fact in itself encouraging. These
bankers. or those dominating the Am
erican Bankers association, had COM
mitted themselves to the idea of a
central bank such as the Aldrich plan
provided, but if that be "inexpedient''
they will now give their approval TO
the regional bank system, although
they advise that the number Of region
al banks be reduced from twelve to
five. The actual number seems a
question of detail rather than of prin-
ciple. 1t is very possible the smaller
number would be better.
The bankers advise that member
ship in the federal reserve, or regional,
banks be made optional with the
present national banks Of the coun-
try. This is much to be preferred and
it is to be hoped that the mandatory
provision will be found to be needless.
Probably this change could be made
in case banking interests were recon
ciled to the bill in other respects.
Threats by banks to secede by whole
sale from the national banking system,
however, will not help the situation.
On he fundamental question of
government control Of the re-organ-
lied banking system the Chicago con-
ference accepts in principle, 1t seems
to us, the primary feature Of the bill.
IT is conceded that of the federal re-
serve board of seven, four members
should be appointees of the president
OF the United States. BY a majority
vote government influence would thus
be made dominant. Herein is a tre-
mendous shifting from the Aldrich
plan. which placed the bankers them
selves IN supreme control Of the fed
eral banking system. The Chicago
conference now asks that the member
banks be allowed to name three of.
the board OF seven and that this direct
presentation be substituted for the
proposed advisory board of bankers. 1t
seems that a compromise might now
be arranged. A direct representation
OF three In a board Of seven will seem
too large to the advocates Of govern
rnent control. If the bankers would
be satisfied with two members Of the
board to De chosen by themselves as
against five by the president Of the
united States. their proposal could
dangering in any way government
supremacy. And yet If they would be
content with a minority on the fed
erai board what thing essential would
they sacrifice by accepting the pres
ent plan OF an advisory board?
The conference. it is apparent, asks
too much of those now in control of
the government in proposing that the |
federal banks issue the necessary cur
rency notes under the control of the
comptroller OF the currency instead
OF having treasury notes issued by
the government. Mr.. Bryan's support
Of the bill would be alienated IL this
We're done, Judging by his letter to-
Chairman Glass: "The provision In
regard to the government issue of the
notes to be loaned to the banks is the
first triumph of the people In ~connec-
ton with the currency in a. genera
ton. It is hard to overestimate the
value Of this feature of the bill.''
Indications are, however, that theI
two sides are approaching common
ground, n the prospect OF a law
enacted that would be embraced and
worked loyalty by the banks grows
brighter.