The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-02
PLANS TO PROVIDE
CAPITAL STOCK OF
REGIONAL BANKS
Senate Committee Votes
Down Amendment of
Hitchcock.
OTHER SCHEMES
NOT DISPOSED OF
O'Gornan Wants Banks and the
Public to Subscribe One-Half
Each to Capital Stock-Ani-
mated Discussion Over Sub
ject of Control of Re-
serve Institutions.
Ispeo,a, 70 Tho rirnes-D!spatch. ]

Especial 20 Tho Times-D!spatch.l
Washington. November by vote
S9bf 20 4. after an all-day discussion
st tho methods Of providing capital
stoek for tho regional banks. tho Son
ete Currency Committee this evening
yotcd down the Hitchcock plan for
common capital stock OF sloo.ooo.ooo,
ehnder the control OF the Federal Re-
,erve Board
~ Two plans offered by Senator OGor-
man were then taken up. but not dis
posed OF Ono provides for half the
#capital stock to be subscribed by the
3bepka and half by tho public. The
&S5bthcr contemplatos offering the whole
fof the atook to the public. the banks to
any amount not.thus taken.
senator O'Gorman prefers the former
43plan. Hia plan also hxes the capital
Rstock Of each regional bank at an
iamount equal to 10 per cent of the COM
8$pined capital OF the national banks in
each region.
~, xConcurrently with this phase OF the
satlaest;on to-day, there was an animal
led discussion over tho subject OF con-
troll OF the regional banks Senator
O'Gorman favors the selection of d.
rectors OF the regionals. even with
public ownership of the stock. provided
In the Glass bill, the banks to elect
six and tho Federal boaru to appoint
three. Chairman owen also ravors
this plan,
vital to Measure.
How those regional banks shall be
ali Ic a., nd no. 4 ho
radical members OF the committee as
vital to the whole measure. II can be
!. stated on unquestioned authority that
IL the committee provides for bank
control. as contemplated in the Glass
bill, there viii be strong minority
report, and the bill Will go to the SEN
ate with the committee divided, and
minority determined to light TO the
end against anything that looks to any
degree OF bank control.
Senator Bristow, after the meeting
adjourned. protested against the adop-
tiun OF this provision OF the House
bill.
What we are attempting to do Ia to
give the people relief from tho oppres-
!. sion OF those who now control the
@credits of the country" he said. IF
fhe banks are given authority TO elect
the directors OF these regional banks.
fhey Will still control credits. and there
8Hill be no sembiance OF local public
3control I will never agree to such a
bprovision."
Efficient Management.
Senator O'Gorman. on the other hand,
holds that with six directors chosen by
the banks. there will be better and
gional banks. The interests OF the
general public and OF those needing
credits. he said. would be protected BY
the Federal Reserve Board, which
would have the power OF removal of
any board OF directors that dlscrimi-
mated against the public
Senator Hitchcock. urging the adop-
tion OF his plan, held that 1t would OBJ
viate the criticism of tho pending bill
that required one regional bank to re-
discount the paper OF another. With
the 500. 000.0 capital Of the reRionals
Mt Its disposal. and the reserves that
would be deposited with It, the Fed
eral board, Mr.. Hitchcock said could
shift portion of this capital from one
regional TO another. as 1t was required
10 meet any situation that might arise
NO definite action was taken on the
pending CGorman proposition. Tho
committee evidently believes that the
question or how the stock shall be pro-
vided and who shall control the banI,
10 the crux of the whole problem. and
TT. may De several DAYS before 1t Is sat
isfaotorily solved. There will DO no
further meeting of the committee until
next Wednesday.
Four-Bnnk Plan Stands.
No attempt was made to-day to re-
consider the action of yesterday in
adopting the four bank plan. The
committee is apparently going ahead
without regard for the opinions of the
administration and other branches Of
tho government, determined TO con
struct the best possible bill 1t can.
GOSSIP from the neighborhood OF the
House n hnt
caucus to pass upon the bill. This
VIII not be tolerated by the Senate
senator Kern. chairman Of the Senate
caucus. stated specifically this after.
noon that there would be no caucus on
me currency bill Senator O'Gorman
emphatically announced that no cnucms
would be necessary and mono would he
held Senator Hoke Smith, of Georgia