The Birmingham age-herald., 1913-07-16
Leading Bankers Are Being
Asked to Put in Writing
Their Opinions
CAREFUL STUDY is
GIVEN THE MEASURE
Impression Now Is That Objections
Will Be Met and That Law Will
Be Satisfactory to All.
Question of Detail
BY HOLLAND

ably all of the chief directing forces of
| the banks of this city, certainly all of
those who direct the larger institutions,
have within day or two received COM
munications from members of the lower
House of Congress at Washington which
convey hint Of the purpose so to per-
feet the banking and currency bill now
before Congress as to make 1t square
| with intelligent and sincerely honest
opinion, voiced by those who by long ex-
perience and careful management are
| qualified to express opinion upon the
subject
These communications from Washing
| ton invite, and, In fact, urge bankers
OF recognized ability and high standing
in New York to put their views In writ
ing and then forward them to Washing
| ton, SO that there may be careful COM
/ parison and study of these opinions. This
| invitation is, of course, accepted as an
intimation that many members of Con-
| gress will not support measure OIL
| this kind until it has had adequate con-
| sideration. They do not intend to vote
| blindfold for a banking currency measure
nor, on the one hand, to support one.
|
support until they have had opportu-
nifty to become we'll Informed.
| Undoubtedly communications of this
1 kind have been forwarded to bankers
| IN many parts of the country SO that
| when replies are received 1t Will be pos
! sible after these views have been THOR
oughly examined to learn what the aver
age opinion of the American bankers is
respecting the character of the legisla-
1 ~ NIB should
| session.
| Word comes to this city from Washing
| ton that members of Congress VINO are
| concerning themselves about banking and
currency legislation have noticed that
| nrs ctical1y without exception the Amer
ican bankers so far es heard from speak
| In terms of high approval of the purpose
| To procure at this session of Congress
| legislation by means of which our bank
| ing and currency system may be SO
corrected as to meet the reasonable de-
mands of American business and the best
| interests of the American people.
No one who has discussed the pro-
posed legislation with bankers OF au-
| thority in this city can have failed to
observe that the unanimous opinion held
1 by them is that this legislative under
| taking is made in good faith in all sin
| certy and in the hope OF formulating
| legislation which will be of benefit to
/ the American people.
A Question of Detail
| If the American bankers as whole
regard this legislative undertaking with
favor and are disposed to speak OF 1t
as something that is being done in good
| faith without any desire for parfi-
| san advantage, but in the inter-
est OF the entire people, then all that re-
| mains TO be done is to whip a measure
| 4. char IN
against criticism and reasonable accept
able to the bankers who will be af-
fected by the measure.
So far as is known no banker of the
United States has withheld approval for
many of the features of the measure and
on the other hand, no banker quaified to
sneak. approves all Of the details of the
measure now before Congress. Some of
the objections are very earnest of a
threat of a kind similar to that implied
in the report that some of the more I'M
portant bankers are seriously considering
whether, IL the bill as now written be-
comes a law, they may not lind 1t expe-
dent to surrender their national char
ters and reorganlze under state char
ters.
II is a fact that in some and perhaps
in MANY directors rooms the question of
surrendering national charters has been
informally or tentatively discussed, but
these discussions have been behind closed
doors and it is only 5J the chance con-
versation of bank officers that 1t has be-
come known that discurtions of this kind
have taken place The president of one
of the largest banks of New York a
few days ago stated to his hoard Of di-
rectors that in case the bill now before
Congress became a law, In substantially
its present form, there were certainly
Ave reasons. perhaps more, which might
Justify the surrendering of the national
charters of the bank and reorganization
under a state charter. Then these rea-
sons were earnestly but Informally dis
crssed.
AS It Is in Chicago
Intimations have come to this city from
Chicago limiting that some of the bank
presidents and bank executive OFFICERS
of that city have been turning over in
their minds the reasons which might
Justify surrendering national charters and
taxing out state charters, should the
bill as now written become law.
But these discussions are at present no
more than academic nor is there any de-
sire that publicity should be given eto
them since II that were done the public
might infer that the national banks we're
entering into a sort of tacit conspiracy
to threaten withdrawal from the national
banking association in case the bill now
De1Ore Congress pecOIueS law III us
present shape.
In the Early Days
| These discussions are similar, from one
| point OF view to those which took place in
| the direetorates of state banks all over
the country when Congress in the ad-
| ininistration of President Lincoln was
considering the bill which subsequently
became the national bank law. In the
directors room of many state banks these
discussions became very exciting and the
reasons which would have justified the
| surrender of state characters and the TAX
| ing out of national charters were long
and earnestly studied. 1t took some time
after the national law was passed before
| the state banks in any numbers surren-
dered their charters In order to become
members of the national banking asso-
citation.
The discussions now under way are no
more than earnest attempts to learn what
| may be the most expedient course for a
! national bank to take in case the pres
ent bill becomes law
| There seems to be n growing impression
that If the bill be so amended as to pro-
vide for an advisory board upon which
| the federal board of reserve would lean
| or turn to for counsel then one OF the
| most serious objections to the present
| bill will be overcome.
Olt of all this agitation there will prob
| ably come-at least in the opinion of the
ADLER bankers OF this city--a spirit of
| cooperation between the national banks
the government which will ultimately
give to the country as perfect ma
tional banking system as written law can
make poSsible