The Birmingham age-herald., 1913-08-26
HARDING TALKS ON
BANKERS MEETING
Currency Bill Amendments
Suggested in Chicago
WHAT THEY PROVIDE
Forgan and Dawes Criticises Bill
Severely, But Reynolds Urges
More C0nciliatOry Course in
Handling the Situation

President w p. G. Harding of the First
National bank has returned from Chicago.
where he participated in the bankers
conference held last week. He talks in
terestingly of the proceedings
There were about $50 bankers in at
tendance, thoroughly representative
gathering" said MIR. Harding. Delegates
were present representing AZ state bank
ers' associations and 1n clearing houses.
"A notable feature was the small at
tendance from the large cities of the east,
New York city having only three repre-
sentatives and Boston and Philadelphia.
only one each. The country banks were
in a majority at the conference.
Various Views
when the conference opened the senti-
ment was general that the Glass-Owen
bill, while a step in the right direction,
was fundamentally unsound, and Mr..
James B. Forgan, president of the First
National bank of Chicago, made a speech
in which he advocated the adoption of
resolutions denouncing the bill as
measure of 'damnable contraction and
at the present session of Congress be
abandoned; and that committee be ap-
pointed, partly by Congress and partly
by the American Bankers association.
to draft an entirely new bill to be pre-
scented at the regular session OF Congress
this winter.
Mr.. Charles G. Dawes, president Cen
trail Trust company of Chicago, and a
former comptroller of the currency, made
an address following Mr. Forgan, in
which he criticised the currency bill
very strongly, characterizing it as being n
scheme for outrageous expansion Of the
currency.
Mr.. George NJ. Reynolds, president of
the Continental and Commercial National
bank of Chicago, made a conciliatory
speech, in which he took middle ground.
He pointed out many defects in the pend
ing bill, but suggested that the bankers
do not put themselves in opposition to
the powers that be- and urged that the
bill be considered section by section, calm
ly and dispassionately and that the con-
ference make such recommendations as
to amendments as might be demed
proper.
Reynolds Idea Prevailed
After a good deal of discussion Mr.
Reynolds idea prevailed and COM
mittee composed of representative
bankers from all sections of the coun-
try, except the east. was appointed to
submit amendments for approval of the
conference This committee reported in
favor of one central bank or associa-
tion instead OF 12. but recognizing that
as one bank was probably politically
impossible that three or five central re-
servo banks would be much better than
a larger number.
''Recognition of the principle of right
Of ownership to representation was
urged and an amendment asked which
would give the government three di-
rectors. the stockholding banks three
directors of the central reserve board,
the seventh member to be the Secre-
tary of the Treasury.
Important Suggestion
'It was suggested that membership
in the reserve associations be made
optional on the part of the national
banks instead of compulsory. 1t was
also pointed out that while the coin
ing of money was governmental func-
tion currency is not money, and that
its issue in all other countries of the
world Is a banking function, and Con-
gress was urged to amend the bill so
as to provide that the notes issued by
the reserve associations should be
properly secured by gold reserve and
by the assets of the associations with
out the guaranty of tho government so
that they would be bank notes rather
than treasury notes 1t was recon-
mended that these notes be free of tax
cold
per cent or more and that a graduated
tax of " per cent be levied for each
az per cent reduction of reserve under
80 per cent. For instance. when the |
gold reserve is 47k per cent the tax OH |
the circulation should be / u per cent; |
when the reserve is As per cent, the
tax should be per cent, and so on. |
the minimum reserve permitted being |
33H per cent
Regarding Section 27
Section q OF tho present bill providing |
for the segregation of capital and assets |
for savings departments of national banks |
was not looked upon with favor either |
by the committee or by the conference |
and it's elimination was asked for.
Altogether about 20 amendments were |
suggested. but the most important ones |
are those I have referred to. The COM |
mittee made unanimous report and af- |
ter full discussion. the conference agreed |
to 1t by a like vote. There was mani |
tested no disposition TO work at cross
purposes with the administration and it |
seemed to me that there was honest pur-
pose to cooperate with the leaders in
Congress in framing a fair and workable
bill. 1t is not thought that there will
be any material amendments made in the
house bill. which has been under consid- |
Grafton for some time and which is near
ly ready for its final reading and pas
sage. but the opinion was confidently ex-