Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-29
GLASS BILL IS NOT:
WHAT BANKS WANT
John Poole Tells of Opposition
at Recent Chicago
Conference.
''SH0T FULL OF HOLES"
Is BANKERS ASSERTION
Amendments Proposed to Almost
Every Paragraph of the Admin
! istration Measure.

Jonn Poole, president Of the Federal
National Bank Of Washington. who re-
turned today from the meeting of the
American Bankers Association held in
Chicago last week, stated that well de-
nned and serious opposition to the Glass
owen currency bill developed at the
meeting.
Mr. Poole said today that the members
OF the American Bankers Association
were outspoken In their criticism of the
pending currency legislation, and that at
the meetings the original bill, as we'll as
the amended measure, were shot to
pieces" alterations being suggested for
practically every provision of the pend
Ing bill
Beginning with the opening provision.
MI. Poole said which provides that ma
tional banks located within the district
of any given federal reserve bank shall
subscribe 20 per cent Of their unimpair-
ed capital. the association adopted a
substitute paragraph reducing the
and substituting the word may" for
the mandatory SHALL
For Resident Directors.
The association further offered a new
paragraph providing that the three men,
bers designated as "Class Co of the di-
rectorate of each federal reserve bank
must be residents of the district in which
such bank is located. No provision is
contained in the pending bill for the
residence Of class C directors.
The paragraph in the original bill pro-
viding for the removal, for cause, Of
class B directors was stricken out entire
ly, and the association voted to curtail
the power OF the chairman of the Organi-
zatiOn committee Of q federal reserve
bank in the matter Of calling meetings of
that committee during organization pc
RODS. Further, the association advocat-
ed the incorporation in the bill Of para
| graph providing for the removal. for
cause, OF the federal reserve agent, in
stead of the chairman of the board of
directors of a federal reserve bank, as
provided in the Glass-Owen bill.
Other changes in the bill as finally
recommended by the association pro-
vide for a reduction of one-half In the
paragraph concerning the increase of
ISOLATION deciding upon 10 per cent as
the proper size for the increase Of the
reserve, instead of 20 per cent as pro-
vided in the bill. Dividends Of s per
the bills figure. were suggested and
adopted, and the demand was made
that. in addition to the Secretary Of the
Treasury and other members of the
federal reserve board. three bankers
be made members of that body.
The most important change suggested
in the pending bill was one providing
that federal reserve banks shall issue
their own notes, this to be done with the
consent and approval of the federal re-
serve board. The Glass-Owen measure
provides that authorized federal reserve
bank notes shall be obligations of the
United States, and shall be redeemable
at the Treasury in gold. The amendment
adopted by the bankers association pro-
vides that such notes shall be obligations
of the banks by which they are issued,
and that they shall be redeemable in
gold on demand by such bank of issue.