Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1913-08-23
HEPBURN PLEDGES
BANKERS SUPPORT
COMNENDS MANY FEATURES OF
CURRENCY BILL But SuG-
GESTS IMPROVEMENTS
WANTS ONE CENTRAL BANK
Points cut Features In Proposed Law
Which Might Operate To Dis
advantages of Localities
Needing Help

%, h.fo.ated Press
CHICAGO. Aug 22.--"I think we
should consider the bill topic by top
ic. or section by section. in the spirit
lot helpful cooperation. and see II We
cannot aid the government to ac-
oomplish wise and wholesome legis-
Lotion. that will place our industries
and our people on a par with other
great commercial nations
This pledge Of cooperation by a.
Barton Hepburn in his speech as
chairman was au evidence of the at,i-
tudc the bankers are 10 maintain IN
their consideration of the pending
currency measure Mr.. Hepburn
commended many features OF the bill
hut did not hesitate to indicate that
there we're others which in his opin-
ion needed revision
The failure 90 fully develop the
central bank idea. and its consequent
effect ON many of the provisions of
the bi'I was the criticism OF greatest
mphasis.
The establishment Of twelve banks
instead of One for the purpose OF
briugIns together the mopey resor-
rrs OF the country had made 1t necss-
sary iu order 90 make these reserves
effective 90 provide a central board
with powers greater than would be
necessary for one central bank -
possess However. the recognition OF
The principle Mr. Hepburn said. was
reason TO rejoice He asked:
"Why then should not the prin.i-
rle on,' r.ropaigtJ. ., ,ofs.ctn ac-
/ piled why should not the law
create one central bank. which should
/ have branches wherever there is
commercial need for them? Such
plan would ho simpler. less cumber-
SOME, aud more certain in operation
and far more efficient There would
/ Chem bo no need f1 give the federal
reserve board authority 10 direct one
...'.Hu of the country 20 loan money
20 another for the central authority
would then control AN the deposits
.HI 900 the loans and they would
make loans 90 those sections OF the
country where most needed
S. matters stand today. when-
over true.u.g Zoo the money mar
/ E.f exists our $4,000 banks begin
competing with each other 20
. strengthen their cash reserve. In
I1iu. .n they intensity the stringen-
r.. u1 aer1rat. the trouble The
.|.p. ..iuD of bank managers To
strengthen their individual institu-
.raH natural and Inevitable. In
....t.rs .ho proposed legislation. one
r. OBJ. most natural questions then
II. u.'rur thn establishment OF these
.oelra' reserve banks viii remedy
.r lragate that condition. VIII
...' NOT naturally bo competition
...f..,u tG. regional reserve banks.
comp petition between the twelve See
..s .' f0a country aul may We not
. 'N. sul have competition of sec
..H AGAINST .0fi1u reserve bank
..r r,.ra bank The farmers
. ... u...ur. evidently recognizes
DANCE. .nl seek 20 palliate IL
Swing f0 the federal reserve
..-. '.. authority 20 force on re-
rs fu loan 20 another. Under
conditions that would exist.
. u0f '., exercise OF that autn-
E a. iu aanomplish the Just
H H.. of funds Is there not
,r.na probability that IN exercis-
'.H' authority factors would be
#..| tIa. would endanger the
H working and permanence Il
... ..... u'aa
With single central reserge
.nE H branches. reserve money
. . H. banks deposited with that
central institution. would count in
.f.. ..-r'rltg. uo matter with which
rE was deposited. or through
.#.H branch 90 was loaneu. With
.... single central bank. the con
trolling ...rd would place It's re-
...t. Boo f1e section OF the country
aH.., most needed. This shifting OF
mHi. would Dee accomplished with
ul. H.fen'at.on and without notorle-
A.. aH,r.as. Or federal board should
require. as 20 might do. under this
proposed hW one central reserve
reserve bank. that could not be done
without larse attention TO the bor-
rpainl locality IN a way that would
operate 90 the prejudice OF that To-
raIty
Mr. Hepburn pointed out at somc
length what be believes TO be the
danger OF having the credit OF the
government called in question at
some future time by obligating Il n
the proposed note issues Of the reg