The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-07-19
EFFORTS TO IMPROVE 1T.

TO improve the administration currency
bill. 4 qualified approval by the Com
mittec has been reported, subject, how
ever, to the incorporation of the rec
concentrations of that committee into
the bill
/ II is understood that one portion of
the bill which the committee addressed
itself TO is the make up and power of
the Federal Reserve Board. The Com
mittce desires the increase of that
Board by two members, these to be
chosen by the seven originally provid.
ed for, with the approval Of the Presi-
dent The reason why the Commerce
Committee urged this increase was that
the Board with such powers as the bill
endowed this Board with, should be
cable TO gauge the broad economic as
pect Of domestic and foreign trade, and
their relation TO industry, commerce,
and banking i'll this country. IT. was
argued by this Commerce Committee
that the six politicians would be able
| TO overbear the one banker provided
for in the board of seven, but that pre-.
sumablv the two additional members
would also be bankers, which would
give the banking side of the board with
its more specific and wider knowledge,
the real control of that board, as
against the politicians. It was Justly
I argued that the power vested in the
board demands the highest quality
OF management experience in business
and in banking, and the combination
of both theory and practice - I'm
| doubtedly that is the case, and as it,
was fairly asked, "What possible as
srance can there be that the board as
originally provided for and established
in Washington in the manner proposed, ,
or in any manner, could be capable OF
directing some of the most essential
factions of banking over this entire
country2'
1T is rightly urged that Washington
is the political center of the country,
the governing center. but by no means
the business or banking center. But
the Federal Reserve Board, in control
of the banks. should certainly be in
touch. with the great banks, more close.
" than the board could be at Washing
ton.
The Commerce Committee also urged
that the country be not divided at
present into twelve banking districts,
as proposed in the bill, but that few
reserve associations should now be
formed, first in New York. Chicago. and
st. Louis, with additional reserve dis
tricts provided gradually by the Re.
serve Board, cas- in their Judgment
conditions warrant them and as ia
cilities and needs seem to require 1T
was justly urged that the separation of
the country at first into twelve bank
ing districts would precipitately break
many established financial relations
that ought not to be interfered with
abruptly. And further that in case Of
any financial stress or business trouble,
it is best not to have, especially at
first, so many independent financial dis.
tricts, since the whole financial strength
OF the country might be required TO
brace up panicky conditions in one
district, say in New York, where the
sweeping currency pinch of 1907 origi-
mated and had its greatest ravages. All
this is sound business sense and good
financial judgment.
Another proposition which the Com
merce Committee sees to be inconsist.
ent is the proposed limitation OF the
issue Of supplementary notes and es-
peeiallv the proposed government issue
Of $500,00O,0O0. II was pointed out
that though these notes purport to be
government obligations and their re-
demption is provided for at the II. S. |
Treasury, they are in fact issued upon
the assets Of the banks, and the pro
posed regulation of that extra issue at
the discretion Of the Federal Reserve
Board through the imposition of a rate
OF interest TO compel their retirement, |
is rectoned as insufficient, since there !
is no requirement on the part of the
board 10 impose any rate of interest
at all upon that outstanding issue. and !
there is no certainty of the retirement
Of that issue or any part Of it. II is /
justly urged also that if this supple i
mental currency is United States cur |
reucy, as it purports TO be, there is
neither need nor propriety of basing
it upon the assets of the banks. for n |
currency issue by The United States /
docs not need to be founded upon any. .
thing else than the good faith Of the |
Nation, On the other hand, if this sup !
Elemental currency is to be based upon I.
the assets of the banks. it ought 10 be !
under the control of the banks and not
of the Federal Reserve Board, and the !
Federal government should neither be |
sponsor for the issue nor responsible for
its retirement
The Committee of the United States I
Chamber. of Commerce has thus had an |
opportunity to let some light in upon
dark places Whether that light win |
go to the cleansing Of the bill Of its in.
consistencies. Of its evil financial fea.
lures, is quite another question:; for