The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-09-06
BANKERS SUPPORT MEASURE,
INDORSE PORTIONS OF ADMINJS.
TRATION CURRENCY BILn.
Urge Amendments Which Thev
Say Will Make 1t More Flexible AMI
Satisfactory.

leading members of the American
Bankers association today at the first
session of hearings begun by the SEN
ate committee on banking and cur
rency. Representatives Of the recent
conference Of bankers at Chicago, who
appeared to present recommendations
for amendments, declared they did
not come in spirit of antagOnism
but in the hope that it could be so
amended as to make the new cur
rency system more attractive and
more flexible.
I'VE do not fear government con-
troll" said Sol Wexler. vice president
of the Whitney Central bank Of New
Orleans and one of the chief spokes-
men for the delegation.
1--WE want only minority repre-
sentation on the federal reserve board,
not to exercise undue influence upon
its actions. but to prevent abuses that
might arise"
The strongest Endorsement of the
general purpose of the measure came
when Senator Crawford, q Republican
member of the comnittee. dclared
the country banks of q State like
South Dakota had nothing to gain
and would suffer greatly by being
compelled to withdrawn part Of their
capital from active business within
the State and send it outside, to re-
giOnal reserve banks.
Il think the senator has drawn the
picture too dark and gloomy"
said Mr.. Wexler. II don't think banks
should be compelled to enter the new
system, but it could be made attrac-
tive enough to induce them to come
in. There would be real benefits even
for a State that would have little
to do with a regional reserve bank"
James B. Forgan, president Of the
First National bank Of Chicago and
chairman Of the Chicago conference
and Mr.. Wexler today covered part
Of the ground embraced in the series
of suggestions for amendments to the
bill made public by the bankers a
week ago.
Suggestions upon which they dwelt
with chief emphasis today were:'
That banks, rather than the federal
treasury, issue currency.
That a central bank or not more
than five regional banks would be
preferable to the proposed IL regional
reserve banks
That membership Of national banks
in the new federal system should be
optional, not compulsory as the bill
provides.
That the amount Of regional reserve
bank capital for which each national
bank must subscribe should be reduc-
ed from 20 per cent to 10 per cent of
the sbscribing banks capital stock.
That one regional reserve bank
should not be compelled to rediscount
the commercial paper held by an
other.
Suggestions made by the bankers
committee that representation oe CIV
ell to the banking interests on the fed
eral reserve board were met with a
countersuggestion by Senator Weeks
that banks should be allowed 10 SUBJ
init to the president q list Of SO or 100
men and the president be authorized
to select from this list four members
Of the federal reserve board.
Both Mr.. Wexler and Mr.. Forgan
advocated a central bank as prefera-
BILE to the proposed system. Under a
central bank, they said, reserve money
could be fed out" to the precise
spot where needed.
The bankers claimed that under the
proposed system of IL regional re-
serve associations it would be lmpos-
sible to obtain enough capital in some
districts to make up the minimum
Of $5,0O0,000. They declared many
changes must be made in the kill, in
cluding the reduction in the amount of
capital required to be taken by each
bank If the 1900 State banks and
trust companies were to be induced
to enter the new system.
Members of the bankers commit
tee present today included: George M.
Reynolds, president Of the Continental
and Commercial National bank, Chi
! cagO; Festus j. Wade, president of the
Mercantile Trust company, st. Louis
E. j. Hill, vice president Of the Ma
tiOnal Bank Of NOrwalk, Norwalk,
Conn.,, Joe Chapman. vice president Of
the Northwestern National bank. Min
neapOlis; Robert +. Maddox, vice
president Of the American National
bank, Atlanta.