The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-27
VANDERBILT PLAN
DEVISED TO DELAY
CURRENCY ACTION
CONTINUED Froin First pngc !

throughout tho United States The
present plan for regional reserve banks
that the ratio OF discount
country at the same time. Such varia-
ton OF ratio IS sound banking
Uniformity IL n Dream.
III variation of rate. rs provided
in tho House bill, was sound bank
ing in July. how does it happen that
uniformity Of rate in the vanderlip
scheme is sound banking in October?
As matter of fact, Mr. Nandcrlip, ~
4 practical banker. knows that uni
formity OF discount rate in ti~s great
country. with it's diversity OF condi-
lions, is n dream. If he does not know
this now. ho has forgotten 1t since he
wrote his letter TO mo three months
ago. ana he can refresh his memory
by reading the testimony OF some or
his eminent banker associates before
the House committee last winter.
In his letter to me last july. Mr..
Nanderlip accentuated tho utter un-
desirabllity. In his view, of any radi-
cal departure from tho existing ma
tional bank act, and warned the House
committee that unless legislation
should be made attractive to the ma
don the system. lie was against do
Ing violence 10 long established
methods. he repeated substantially tho
cutlery or tho bankers against tho
force DIR and against the 'coniisca
tory clause of the House measure.
contcnding that the owners OF banking
capital should manage their own prop
crty.' and predicting total failure IL
the House scheme should not be made
Il sftN 80.
Now. Mr.. Vanderbilt comes with
centrai bank scheme. cmhodying every
one OF these Objectionable features. If
banks viii leave tho system
under the House bill. how can they be
cNp"cted 70 remain III under Mr. Van
derhp's plan Of compulslon and con
nsoauon' and political control?' Has
Mr.. Vanderbilt forgotten the tremen-
uous protest % the bankers. big and
little; AT Chicago recently. and at Bos-
!, ,%r ron iaier; ana N public addresses
power lodged by the House bin with
the President OF the United States and
WITH the Federal reserve board over
inc banking business OF the country.
tircnt Power of President.
Under Mr.. Nanderlips proposal the
president has tcufold power He not
only appoints the central board OF the
central bank, but the central board in
turn appoints the managers and direc-
tors Of the twelve branch banks, thus
giving the President first and last. ab-
contrary, under the House bill. the
twelve regional reserve banks, in the
exercise Of strictly banking functions.
arc reasonably independents OF the
president and the central reserve board.
Thus the House bill maintains the in
tesrity OF our independent banking
system, o-ordlnatinS II and using all
Of its strength in time Of stress. While
Mr.. Nandcrlips proposition simply de-
stroys.it.
Moreover. what becomes OF the
a. - pf 4
ers Association against that provision
OF the House bin which requires the
reserve funds Of the. country To be
BANKS, banks and In the regional reserve
nn Mr. Nanderlip's plan provides
Ionse d ' ns th hs a ,GnE The
drive bal Ks out of the national system.
how could Mr.. Vnnderlip's scheme he
s,iNpectea 70 Keep them in? And II tho
sition9 =
), And then, how viii Mr.. vanderlp
bankers 20 the "socialistic' feature OF
the House. bin which gives the gov
efnment or the United states a part of
The earnings OF the regional reserve
banks, without striking that feature
from his own scheme?
what becomes OF Protcstt
What becoE.-S or the protest OF tho
bankers against the power of the Fed
crnl reserve board, under the House
n,ii. - suspend reserve requirementsr
Nr. Nanderlip proposes precisely the
y note from the newspapers that
Nj Nanderlip, in his tcsiiln ony, stood
the House bill for government notes
~ Moutd ne interesting to have Mr..
Nanuernp define. the practical differ
ence between United States Treasury
note with specified reserve behind
u, ana note issued by Il United states
bahk. owned and controlled entirely
NJ IL -
stun more interesting if Mr.. Vanderlip
Would undertake To point out how a
bank or banks based on n gold r"-
scrN. and commercial paper. is any
soundcr. either in principle or in fact,
than = note issued by the Federal re-
serve hoard 10 regional banks based on
Il gold reserve and commercial paper.
win government responsibility super
And 80 might continue indefinite
~ TO point ont the Inconsistencies be-
t,Weeil Mr.. Nanderlip's letter to mo last
July ana his proposals before the Rank
ing and Currency COMMITTEES OF tho
Senate in october. The conclusion that
i F ,i from this whole performance
prepared as | am told, by Mr. Nander-
Up. 81 the Nauonal city Bank, in con-
llqI le win Mr.. Dnvison. Of j. T..
a Standard oil connection, is intended
10 confuse the question OF banking and
t currency reform. or else. il is hoped
'i.t', ~ INC s.NbPll'Jt OF some Such
schentc OF absolute Capitalization. il
VIII be far easier Ii .rcaftcr for certain
gentlemen To get control OF it for GER
tain purposes than would 10 possible
under the proposed regional bank sys-
TEN.
Pintforn, Declaration.
l5ut ioWeNcr much Of merit there
may be in AIR. Vanderlip's scheme. il is
perfectly patent that serious consider
alton OF II 1T this time, as Il substi-
tutc for the House bin. would mean an
ihdcnnltc reinforcement Of currency
for tho reason that the
platform upon which the Democratic
administration and the SiXty-tnirG
Congress We're elected distinctly said.
We oppose the so-called Aldrich
bin or the establishment of n central
bank.
ITO undertake deliberately to rcpu-
date this explicit declaration of the
lialtiinure platform would involve the
ducnces, and would render exceedingly
remote the probability OF CURRENCY
legislation ut any time soon In nv
judgment ii would be simply futils Ia
attempt anything of the Kind"
Issue Clearly Drawn.
washington, october 26--Recon-
Kcal estate for 1aent