Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-09
Ample to Move Crops, SeCre-
tary McAdoo Is Told at
Conference.
FAVOR CURRENCY BILL
IF CHANGES ARE MADE
Decentralization of Reserves One of
the Chief Points of
Objection.

The thirty-one bankers from all over
the United States who are discussing in
Washington with Secretary McAdoo the
needs OF the country in the way of cash
To move the crops have seized the op-
portunity TO present their views on cur
rency legislation to the government.
They urge two material amendments 10
the pending Glass-Owen bill one cur
failing the powers OF the federal reserve
hoard. which is proposed to control the
reserve bank system. and another es-
sentialiy modifying the reserve require
ments OF the measure. SO as to minimize
the decentralization Of credits
~ IS the consensus of opinion among
the bankers that the $50. 900. 900 of gov
eminent funds originally offered by the
Treasury Department to move the crops
VIII be enough to relieve the usual
strain. although Secretary of the Treas
ury McAdoo offered the hnsnciers the
use of as much three times the origi-
nally offered $4,000, 900 IL they wanted
IT.
Think $50, ooo, 900 Ample.
Business conditions are declared TO be
30 good In the United States by the
bankers that they not only do not need
more than &n0AOO0 to move the crops.
but all but two Of the thirty-one bank
ers gathered here favored immediate
banking and currency legislation. with
the Two amendments proposed to the
GlaSs-Owen bill. as outlined above
Amendments to the bill were proposed
TO Chairman Owen Of the Senate finance
committee after the conference with
posits. 1t was urged that the federal
reserve board be deprived of all powers
OF initiative. lodging that function with
the proposed advisory board. composed
Of bankers. This proposition would
conhne the administrative activity OF
the federal reserve board to the ap-
prevail or disapproval of suggestions
from Its advisory council. The bankers
argued that the federal reserve board
should. be stripped of administrative
powers and made essentially a regu-
latory body.
object to Reserve Plan.
Strong criticism was made of the re-
serve features OF the bill. The bankers
declared that as at present drawn it
would decentralize credits to such an
extent as to impair business seriously.
some maintaining that they would be
obliged materially to increase their
loans. They asked for a reduction of
the reserve required of country and re-
serve city banks and such a relaxation
as would permit the continuance of a
proportion Of reserves with reserve
agents as at present instead of forcing
these reserves into the federal reserve
banks or keeping them i'm the banks
own vaults.
The bankers suggested that the reserve
for country banks be reduced from IL per
cent 10 L. per cent, of which ) per cent
would be held In the banks vaults, 3
per cent deposited with a federal reserve
bank and pes cent placed with cor
respondents OF Kept In It's own vaults or
deposited with the federal reserve bank
They recommended that the 10 per cent
reserves for reserve city banks be re-
duced to IS per cent: u per cent in the
banks own vaults u per cent, in the fed
eral reserve bank. and q per cent with
co respondent banks.
Result Of Recommendations.
These recommendations would. Il was
pointed out. result in transferring to
the federal reserve banks only about
"ne-half of the present reserve de-
posits OF the banks with correspondents
instead of all Of these deposits, as con-
templated by the bill The bankers
argued that Congress should go slowly