The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-08-06
Committee Authorizes Savings
Divisions for the Ma
ti0nal Banks.
TRUST DEPARTMENTS TOO
President May Appoint Only
Two Men Of One Party on
Reserve Board.

WASH rNoroN. Aug. 6.-The Democrats
OF the House Committee on Banking and
currency by a vote of II to formally
indorsedd the Administration banking and
currency bill to-day.
Two important amendments were add
ed. One provides that the President. in
selecting the four members OF the Fed
eral reserve board. which he Is authorised
20 name. shall choose not more than two
from the same political party. The other
amendment added to-day authorizes ma
tional banks to operate savings and trust
departments. The latter feature. how
ever, is to be limited to acting as trustees
for mortgages.
The amendment relating TO the Federal
reserve board. which will control the pro-
posed new banking system. really repre-.
sents an effort to meet the criticism that
this Government board is certain to be-
come involved In politics. While the
purpose Of the amendment Is clear. 1t Ia
in itself a confession that the criticism
Of the proposed system on political
grounds is justified.
The equal division Of the Presidents .
the actual political complexion Of the
Federal reserve board. for the three MEM
hers who are to serve ex oficio-the
Secretary Of the Treasury. the Secretary
Of Agriculture and the Comptroller Of the
Currency-wilI In effect be selected by the
President and will be Of his political
faith.
Lone Dema nded by Bankers.
The amendment extending the functions
OF national banks to savings and limited
trust business is designed to meet long
standing demand by bankers. Officers OF
national banks. in order to compete with
other banking institutions. have been
Obliged to resort to roundabout methods In
the handling OF trust business. This
usually has taken the form Of independent
companies in which stockholders OF the
rational banks have been the principal
owners.
Many bankers have contended that
national banking institutions ought to
have direct authority to engage in this
character of business. and to-days amend
ment seems to be an opening wedge IN
that direction. The amendment was
offered by Representative Buikley OF Ohio
and was adopted by a vote Of 10 to Z.
on the final showdown on the bankino
bill as a whole Representatives Ragsdale
Of South Carolina, Eagle OF Texas and
Neeley Of Kansas were the only members
who cast dissenting votes. For the pur-
pose of presenting an appearance Of regu-
larity Representative Wingo Of Arkansas.
who has opposed the bill In committee.
voted for its reference to the CAUCUS.
which will be assembled on August II.
Mr.. Wingo made 1t plain that his vote
did not commit him to the support OF the
bill On the contrary he gave notice
that he would support In caucus an
amendment aimed at interlocking dirrec-
torates and another authorizing the estab-
lshment OF q system Of agricultural
credits.
There was a demonstration at to-day's
meeting OF the committee over the Rags
dale Henry amendments. which provided
for the Issuance Of currency upon certifi-
Gates representing corn wheat and cotton
held in warehouses. These were defeated
in the committee last week. However. the
insurgents made q final effort to effect
recognition of the principle OF agricul-
tural credits.
Neeley's Amendment Defeated
Mr.. Neeley offered the amendment pro-
viding for the issuance Of currency upon
corn, wheat and cotton certificates
1t was defeated by . vote OF 10 to 4.
Representatives Wingo. Neeley, Ragsdale
and Eagle cast the affirmative votes.
The insurgents against the Admins
tration banking and currency programme
are dying hard. Representative Ragsdale
gave notice that ne will address the House
on the subject on Friday. He will make
an argument in support Of all the radical
propositlons that were defeated In COM
mittee. among them the amendment to
issue currency on corn. cotton and wheat
In committee to-day Mr.. Neeley gave
his party colleagues to understand that he
might not be bound by the caucus. He
indicated that when the time came to
vote on a formal report to the House he
light vote with the Republicans In oppo-
sltlon to the bill. Mr.. Neeley also made
public a statement In which he criticised
the bill for ito failure to recognise agri-
cultural credits. He said:
Il voted against reporting favorably
the currency bill to the caucus for the
reason that do not consider It meets
the situation as fully a. II should.
The bill works many radical changes
In our financial system and has some
admirable qualities. but at the last mo.
rnent and without any previous consider
alton and with absolutely no debate by
the members OF the committee motion
was passed authorislng the chairman to
draft an amendment to the bill authorix-
Ing national banks to organize and opera's
both savings and trust departments In
conjunction with the other features Of
the bank.
This Is an entirely new provision and
,eL1s to Capitalization OF power In Q
high degree and certainly should never
have been adopted without careful con.
s!deration and earnest discussion.
Platform IL Net Needed.
The committee rejected an amend.
ment regulating interlocking directorates
IN banking institutions. contrary to the
eeclaration OF the last Democratic plat
form and In direct opposition to re-
!"ated findings Of the Fujo COMMITTEES.
III also rejected an amendment. de-
s'gned to mako agricultural communities
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