New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-30
The Secretary of Agriculture
and the Controller Dropped
from Federal Board.
TREASURY HEAD MAY GO
Committee Favors Reducing Re
gional Reserve Banks to Not
More than Six-Central
Plan in Allegiance.


Washington. oct 29.-The first step IN
the way OF remodeling the Glass-Owen
currency bill was taken by the Senate
Banking and Currency Committee to-day
II increased the membership OF the fed
eral board which is to have control OF
the system from seven to nine. and elimi-
mated the Secretary OF Agriculture and
the Controller OF the Currency as ex-
officio members. II has not yet been
definitely decided whether the Secretary
OF the Treasury shall remain as MEM
Der.
II the Secretary Of the Treasury is re-
tanned the number will be fixed AT nine
and the term of service at nine years. one
member 20 be appointed each year by the
President when the system is under
operation. otherwise the number VIII De
fixed at eight and the term of service AT
eight years. 1t Is probable also that the
Senate committee will increase the sal
aries of the members of the federal board.
which are fixed at $1,000 a year by the
pending bill.
The provision Of the Owen-Glass meas
ure for the appointment OF an organiza-
ton committee to establish the system
was dropped. This work will he per-
formed by the members OF the federal
board.
The question OF the number OF regional
reserve banks was discussed at some
length. and probably will he disposed OF
tomorrow. Sentiment on the committee
Is in favor OF reducing the number TO
three. four or five. or at the most not
more than six. The location Of regional
banks in the three central reserve cities
New York, Chicago and St Louis-served
as the basis for the discussion. Some OF
the members were OF the opinion That
three banks would be sufficient Then
arose the question whether or not II
would be necessary to establish one NJ
San Francisco. or possibly at Denver IL
was suggested that the business OF the
Ia stern United States and the more
northern Southern states could he trans
acted Al New York that Of the northern
Middle West and Far West at Chicago.
and that Of the South at St LOUIS. IL
was not regarded ~ essential that bank
be established at New orleans. What
ever cities are selected IL ~ almost a
foregona conclusion that the Senate COM
mittee will carry out the recommends
ton Of the bankers that the number oil
regional bau.;s be- greatly reduced
The relationship between the various
regional banks was also the topic OF some
discussion An effort will be made on the
part Of some members Of the committee
ut lcnst 10 vest greater control IN the
hands of tine federal board, thus ap'
preaching the central bank idea and paw
ing. the way for the regulation OF the
system from a centralized source.
The committee has temporarily ahan-
doncd all efforts to dispose OF the central
bank plan. on which the committee stands
six 10 six. The members will proceed to
develop both the regional and the central
bank plan So far as possible along parallel
lines until each Is perfected, 20 far a.
the commit 90 can argue. Then the vote
will be taken on the two plans.
| The notifications adopted thus far by
the committee do not indicate a final de
| cision that the Owen-Glass plan viii be
adOptcd. although IL Is apparent thai