Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-24
BANKERS TO URGE
CURRENCY PLAN
Outline Changes They Want
Made in the Pending Glass
Owen Bill.
Committee is SELECTED
TO COME TO WASHINGTON
Resolutions Adopted Declare That
Need of Remedial Legislation
Is Recognized.

CHICAGO, August 23.-Bankers from
all parts Of the couptry at the close
OF a two-day conference today agreed
on number Of important amendments
to the Owen-Glass currency bill now
pehding in Congress, and appointed q
committee OF seven to go to Washing
ton and endeavor to have the changes
incorporated in the measure Members
of the conference expressed the belief
that the administration forces in
Washington will be convinced by the
arguments they will present and modi-
fy the bill so that it will be reasonably
satisfactory to the banking and busi-
ness interests Of the country.
The amendments were presented to
the conference by committee on reso-
lutions. and were adopted after a long
discussion by unanimous vote. The
committee went through the currency
bill section by section. and recommend
ed more than a score Of changes
On motion Of Luther Drake OF
Omaha the following committee was
named by Chairman Hepburn OF New
York to go to Washington and present
the recommendations Of the conference
to President Wilson. Secretary of the
Treasury McAdoo and Congress:
Members OF Committee.
James b. Forgan, Chicago. chairman;
George W. Reynolds. Chicago: E. J. Hill,
Norwalk. Conn: r. F. Maddox, Atlanta
Sol Wexler. New Orleans: Joseph Chap
st. Louis. The committee will 60 to
Washington in a few days to begin its
work.
The resolutions adopted at the confer
ence read as follows:
The currency commission of the Amer
ican Bankers Association. charged with
the duty Of endeavoring to secure
remedial banking legislation and regard
ing the banking measure now pending In
Congress as evidencing the earnest wish
of the administration to give q wise Law
| to the country. has profoundly desired to
cooperate in every way. To this end
| upon its invitation that the presidents OF
the forty-seven state bankers associa
tons and that representatives of the 19l
clearing houses attend and unite in ar
expression, this joint body composed OF
bankers from every section of the south
and north. from coast to coast. repre-
senting country and city banks. state ami
national and trust companies, after care
| fully considering the BILL has adopted tn,
| following:
Recognition of Need.
Whereas we recognize the imperative
| necessity Of Incorporating into the bank
! ing and currency system of this country
| those proved principles which will pro-
| vide the most ample credit facilities with
greatest safety and a currency based on
| gold, which automatically adjusts its
volume to trade requirements, in order
that the highest stability may be attain
| ed for our commerce. thereby assuring
nit nf 1ahnror
and favorable markets for the producer.
| the fundamental basis Of general pros
perity, and
whereas. although the pending meas
ure has many excellent features and
recognizes certain principles fundamental
| in any scientific banking system, yet 1t Is
| believed that the application of those
| principles may In certain respects De
made in ways that will more surely avoid
! 4 credit disturbance and more efficiently
attain the desired benefits for the whole
people, and,
To Insure Cooperation.
Whereas we believe that to insure
the successful operation of a new bank
ing law it.must be of such character
as to warrant a general acceptance OF
it's provisions by existing banking In
stitutions, both state and national.
country and city, since the first test OF
the measure of success must be the
strength and power of efficiently serving
the interests of the entire country.
| which can alone be had from general
participation Of banks Of all classes; and
| believing that the bill as now drawn
| will. by it's onerous provisions. prevent
state banks and many national banks
desiring to cooperate with the admin
istration in bringing about the adoption
Of the most highly efficient plan. there
oswax ehanses nsst n s ss ss
published. convinced that, while not
rendering the plan IDEAL these changes
would render organization more probable.
provide a system that would generally
develop into bulwark for the pro-
lection of our. whole commerce, benefit
la aborer, the farmer and the business
man."
Changes Recommended.
A summary of the important changes in
the currency bill proposed by the resolu-
ton adopted by the bankers conference
follows:
That there should be established one
central federal reserve bank under the
new currency and banking plan instead of
twelve, and If this is found inexpedient
the number should not exceed five, with
as many branches as may be required in
ell parts of the country.
That membership in the federal reserve
banks be made voluntary instead Of COM
pulsory on the part of national banks, the
same as provided in the case of state
banks.
That the amount OF the subscription to
the capital stock of the federal reserve
banks be reduced from 20 to 10 per cent Of
the Capitalization of the bank applying
for membership
That. in order to remove the control Of
the federal reserve banks from political
influence. direction of the institution be
vested In a board OF seven members
composed of the Secretary OF the Treas
ury as an ex-officio member. three men,
bers to be appointed by the President OF
the United States, who shall give due
regard TO geographical territory OF the
country, and three members to be select
ed by the member banks. The terms Of
Office are fixed at three, six and nine
years at the beginning and nine years
for all members after the first term.
The salary is fixed at $4,000 year
with the allowance for necessary travel
ing expenses
Need Of Trained Bankers.
That three of the directors Of regional
banks shall be experienced in banking
and live in the district