The Bridgeport evening farmer., 1913-10-14


vided in another way in the AIdrich
Scheme scheme that was unani-
mously endorsed by the American
Bankers Association. 1t is not in the
required capital subscription nor the
five per cent. dividend. It is none of
these.
cit is in that most vital requirement
of the bill that in the future funds on
deposit in other national banks can
not be counted as legal reserve. This
means an Immediate loss of profits
to many bankers say immediate,
for in the long run the change will
benefit bankers as well as the public
and it is the prospect of that loss
that explains most of the organized
opposition to the bill.
''The fight is to drive US from our
firm resolution to break down the ar
ti1ciaI connection between the bank
ing business of this country and the
stock speculative operations at the
money centers. The Monetary Com
mission, with more discretion than
courage, absolutely evaded the prob
lem; but the banking and currency
committee of the House has bone to
the very root of this gigantic evil, and
in this bill proposes to cut the cancer
out. This we propose to do cautious
ly, graduating the operation to prev
alent conditions and extending it over
a period of thirty-six months.
"Out of abundant precaution we
have actually allowed longer time
than the best practical bankers of the
country said was needed. But the
plant of these critics is not as to the
time but as OF the fact. They do
not want existing arrangements dis
turbed; they are willing to perpetuate
a defective, unscientifc system sane
toned by law but condemned by ex-
perience and bitterly offensive to the
American people, system which
everybody knows encourages and pro-
notes the worst description of stock
gambling
AS to the charges that the bill con-
ferred autocratic- powers upon the
liticaf board, and that compulsory
membership was unjust, Mr.. Glass
said In part;
1.-THE Federal Reserve Board is es-
sential1y a supervisory board, and
clearly should not represent any Sec
ton, faction or type of business in
terest. 1t should represent the pub
lie as a whole. There is only one
way of securing a board of this kind,
namely, to have it appointed by the
President of the United States, who
alone is the elected representative of
the entire nation. That is the way
we select the Secretary of the Treas
ury and the Comptroller of the Cur
rency, in whom has been vested for
half 6. century by the National Bank
ing Act nearly every power confer
red by this Bill upon the Federal Re-
serve Board.
although the members of the Fed
eral Reserve Board will all be appoint
ed by the President of the United
States, the Board will not be a polit-
zeal Board in any narrow sense of that
term. It is my earnest conviction,
based upon long and serious reflection
that no man can conceive-as none
has yet pointed outflow any part of
this system can be perverted to po-
litical uses In my judgment, if the
United States has ever had a presi-
dent ingenious enough to do this evil
thing, it has never had one desperate
enough and never will have one
Shameless enough to thus betray the
confidence of the nation.
81 happened to be present when an
eminent banker suggested such a pos
S1bll1ty to the present occupant of the
executive chair and heard this banker
promptly challenged to show how 1t
might be done. shall not soon for
get the emphasis with which the Pres
1dent of the United States declared
that no man would ever be found who
would be willing to imperi1 his repu-
tation or tarnish his fame by so fla
grant a prostitution of his high office.
Critics allege that it is unjust and
conhscatory to compel national banks
to invest part of their capital in a fed
fixture of their national characters if
they fail to do SO.
II ask you in all fairness, is it I'M
reasonable for the Government to say
to the national banks: Gentlemen, if |
you wish to retain the name Nation
al, and to enjoy the privileges which |
are conferred upon banks chartered |
by the National Government you must |
assume the obligations which the Ma
tional Government believes the die |
of 11A1 -,
public interest. If you do not wish |
to do SO, you are perfectly free to give |
up your federal charter and to accept |
the privileges and assume the obliga-
lions which state charters involve. !
You may have a year to decide, but if !
you are to remain permanently in the |
national system, you must expect to |
play the game according to the ma
tional rules