Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-24
PREDICT injury
TOSMA[L BANKS
Westerners Discuss Currency
Bill Before Senate
Committee.
VIEWPOINT OF FARMER
AND GRAIN MEN GIVEN
Senator Bristow Argues That All
Interests Should
Be Heard.


the viewpoint Of the farmer and the
grain merchant was discussed before the
Senate banking and currency committee
today by delegation Of merchants from
the northwest They opposed the pro-
visions of the bill as they expect them
to affect the country banks.
F. E. Konaston. a manufacturer OF farm
machinery. said that the country banks
would be unable to take advantage OF the
discount provisions of the bill owing to
the fact that such banks hold practically
little of the ninety-day paper made the
basis of currency by the bill. He said
that these country banks hold largely
six-month. nine-month and one.year pa
per. Thus. he said, the country banks
would be forced to come into this sys-
tenn, meet all the requirements Of the
law and receive no benefits therefrom.
Suggests Visit in West.
Mr.. Kenaston suggested that the COM
mittee. before passing on the bill. visit
the farming and business communities
Of the west and become closely acquaint-
ed with the business conditions of the
various communities.
Senators Bristow and Reed seemed to
take kindly to this suggestion. and Sena-
tor Bristow vigorously declared that time
should be given to all interested persons
to be heard on the measure.
Senator Bristow expressed the opin-
ion that a majority of the committee
would support him in q demand that
all bankers, business men, merchants
and others desiring to discuss the bill
be allowed to appear before the COM
mittee. II that course is followed the
bill may be In the committee at least
a month and probably until Novem-
Der /.
Breckenridge Jones Of the Mississippi
Valley Trust Company Of st. Louis dis.
cussed the position Of state banks and
trust companies and urged q number
OF minor amendments changing the
phraseology Of the bill relating to trust
companies
Urges Attractive Plan.
Jones said that the measure. II properly
perfected. would not hamper Independent
banking, and would improve and broaden
general banking conditions. He said
the bill should be made sufficiently at
tractive to bring the state banks and
trust companies into the system. He
said that the state banks and trust COM
panies of the country formed the bulk
OF the banking capital 3 Of the country.
taken care Of by the bill as well az the
national banks.
Number Of Banks.
In the country. he said. there were
1872 national banks and 1893 state
institutions reporting to the controller
Of the currency. The national banks.
he said. controlled 1857 per cent and
the state institutions more than SO per
cent Of the bank capital of the coun-
try. The national banks, he said. held
only 33 per cent of the individual de-
posits of the country.
NJ nh fAd In mr. ici n N
Of the bill allowing national banks to
conduct a savings bank business. To
allow this would place the national
banks. he said. in unfair competition
with state institutions.
Delegation in Opposition.
Yesterday afternoon the committee
heard a delegation OF Minnesota business
men in opposition to the bill. They de-
clared that there was no desire in Mime
sofa for hasty action on a currency
ward p. Wells. Charles NJ. Harrington,
Fl. E. Kenaston, A. II. Comstock and
Fendan G. Winston.
Mr.. Wells told the committee that the
not represent banking interests. He de-
clared the idea for capitalizing the federal
reserve banks was confiscating capital
and putting it into an Organization that
might become the foot ball of politicians.
Lack Of Funds Predicted.
Charles NJ. Harrington read an argu-
ment to show that under the proposed
system the banks Of the northwest would
not have available sufficient funds to
handle the farmers product during the
fall and winter months.
r. e. Kenaston said that In his busi-
ness OF manufacturing farm machinery no
found Il necessary to borrow money on
paper running from nine months to one
wear In order to accommodate the pur-
chasers, and for that reason the NINETY
days provision OF the bill would make
the proposed loan system valueless to him:
He added that the provision OF the bill
aiiowincs the rediscount of paper running
up to six months when used for export
or import transactions was rank dis
t,ar IN NJ .don,patfC husfneaE' -