The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-10-24
VANDERBILT PLAN OUTLINED.
u Aims At Elimination Of Politics
From System.

NAsHINGToN, oct. 90. A complete
scheme. for a currency bill designed to
supplant the pending Glass-Owen measure
was presented to the Senate Committee
on Banking and Currency to-day by Frank
y. Nanderlip, president of the National
city Bank ofNew York
The proposition is for the creation OF
{ & single Federal reserve bank to be con-
uoled by Federal reserve board Of
seven members appointed 10y the President
and with Government control OF the
Federal reserve system from top to bot
tom
II Immediately became apparent il the
committee that Mr.. Nanderlip's suggested
substitute for the Administration bill had
maize deep Impression. In fact 1t seemed
'n-niEht Ia have the approval of more than
ajority of the committee and the belief
prevails that the comm!tte. in its eNecu-
tive sessions next week will begin the
nraftng of bill along lines similar to
los, suggested 10y Mr.. Vanderlip This
ojl viii become the committees substitute
fo. the Class-Owen measure.
The complete surrender of all control
lit I tutial DdlklHp system tne
bonkers as suggested In Mr.. Vandeilip's
iruJ.cted bill, II is contended carries out
ne fundamental ideas expressed in the
,tmocratc platform except IN So far as
Nr Nanderlip refused to approve of the
Government guarantee or Government
! sue Of the new circulating medium.
support of Substitute Plan.
Tive apparent ma jority won to Wander
ps New OF the currency needs of the
.plutr! will. it is believed. stand by prac-
ally every suggestion made by him ex-
.pt in regard to the Government quar-
tt'" upnn the circulating notes.
Nj, Nanderlip suggested II, entire
.niuation of the banking interests OF tn,
.'uutiy from the operation or con ntrOl oi
.ue projected Federal reserve system by
posing the creation of a single Fedora
.nh uf redlscount and redemption TO BE-
.,.ctn,d by Federal reserve board.
~" suggested the creation Of twelve
"f.tncnes of the Federal bank to be con
Quoted by executive committees OF sever
.l'mb,rs, all Of whom would be selected
u. the Federal reserve board itself and IL
'nusr choice the banks would have n;
Slidun OF "A right to dictate. In othel
cords, To put the proposal succinctly d!
cpress.d ny Senator Bristow Of Kansas
The Federal reserve bank in Wash
Ion in all Of it's branches and in IL
h-brauchcs would be- Government con
ull"d from the chairman of the Fedora
.,rd to- the assistant janitor Of tine leas
Hrortant branch
IHr Federal reserve bank as proposed
Mr. Nanderip would have "A capital u
In b,, ri no ~ b., .nv
Hwout ur by the people OF the Unite,
..t'.s. In event of the latter pan bein.
'Hrrd he suggested there should be al
Ilraoce embodied in the law creatin,
bank by which at the time OF tn
-Iuh stock subscription the nationa
'.Ies Of the United States should under
o." the stock issue and that they shOul,
obligated to subscribe to the stock re
ming after the public subscription ha
u exhausted. provided OF course tn
ulIr subscription did not consume tn
f', issue
4" suggested that in lieu OF the bank
obligated to subscribe for the re
uJor Of tue capital stock OF the ban
nlted States Government be tn
'rhuplder of the unsubscriied shares
To Pay National Debt.
'h' stock OF the Federal rescrv
b. according to Mr.. Vanderlip's sug
on, would have no voting power an
oth'r tights except of participation
'doHds He suggested that this div
''h should be cumulative and that OF tn
''-. earnings OF the bank One-ha
'1ld he set aside for the creation of
n'us ana that when the surplus Of III
reached the sum of $4,000, 900 III