The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-10-27

his letter highly commended the house
Dill for Its superiority to the Aldrich
scheme In the very particular In which
he now condemns the house bill in
quote from his letter Of July "a:
"In n way the system Of regional
reserve banks has an advantage Over
the national reserve association pro-
posed by the national monetary COM
mission. The plan for a national re-
serve association provided that there
should be. a uniform rate of discount
throughout the United States. The
present plan for regional reserve
banks contemplates that the rate of
discount will vary in different sec
tons Of the country, at the same time.
Such variation Of rate Is sound bank
ing . ".,@ ~
IF variation Of rate as provided in
the house bill was sound banking in
July, how does it happen that uni
formity Of rate in the vanderlip
scheme Is sound banking in October?
In his letter, to me last July Mr..
Vanderlip accentuated the utter UNI
desirability. in his view, Of any radical
departure from the existing ational
bank act warned the house committee
that unless legislation should be made
attractive to. h national banks they
would quickly abandon the system.
He was against doing violence to long
established Methods he repeated
substantially the outcry of the bank
ers against the force bilr and against
the "~conf1scatory' clause of the house
measure, %contending that the owners
of banking capital should manage
their own property and predicting
total failure of the house scheme
should not be made more advantage
Gus to the banks
Nov Mr.. Vanderlip comes with a
central bank scheme ~embodying every
one Of these Objectionable features. If
national banks will leave the system
under the house bill. how can they be
expected to remain in under Mr..
Vanderlip's plan Of 'compulsion' and
'conf1scation' and political control?'
Has Mr.. Vanderlip forgotten the ire
mendous protest of the bankers, big
and little, at Chicago recently, and
at Boston later, and in public address
throughout the country against the
power lodged by the house bill with
the president Of the United States and
with the federal reserve board over
the banking business of the country?
The house bill maintains the integrity
of our independent banking system,
co-ordinating it and using all of it's
strength in time of stress, while Mr..
Vanderlip's proposition simply des-
troys it.
Moreover, what becomes of the
frantic protest Of the American
Bankers association against that
provision of the house bill which re-
quires the reserve funds Of the coun-
try to be kept in the vaults of the in
d1V1dual reserve banks and in the re-
gional reserve banks? Mr.. Wander
lips plan provides practically the
same thing.
What becomes of the protest of
hn-h Q n Enro- a oa =, O. -fh@ oSr,o - u.
federal reserve board, under the house
Dill, to suspend reserve requirements?
MI. Vanderlip proposes practically
the same thing.
$50 l might continue indefinitely to
point out the inconsistencies between
Mr.. Vanderlip's letter to me last July
and his proposals before the senate
conclusion that 1 reach from this
whole performance is that this new
est currency scheme, prepared as I
am told by MT. Vanderlip, of the Ma
tlonal City bank, in conjunction with
Mr.. Davidson, Of J. P. Morgan & Co,
and Mr.. Strong. with the Standard
Oil connection, is intended to confuse
the question of banking m currency
reforms; or else it is hoped that, by
the adoptio of some such scheme Of
absolute Capitalization it will be far
easier hereafter for certain gentle
men 10 get control or 1t for certain
purposes hat would be possible un-
der the proposed regional bank sys-
tenn.
THE platform upon which the DEM
%ocratic. administration n the sixty
third congress were elected distinctly
said:
1--WE Oppose the so-called Aldrich
bill or the establishment Of a central
bank
ITO undertake to deliberately re-
pudiate this explicit declaration of
the Baltimore platform would involve
the democratic party in serious conse-
quences and would render exceedingly
remote the probability of currency
legislation at any time soon. In my
Judgment it would be simply futile
to attempt anything of the kind"
While President Wilson is confident
of early action on the currency bill
by the senate committee, it is the be-
lief of many members of that COM
mittee that several weeks will be con-
sumed in the discussion and revision
of the measure. Many of the most
holly contested points in the bill
probably will require days for discus
sion and settlement. In the meantime
it is expected that both branches of
congress will do little other business.
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