The San Francisco call., 1913-08-24
One Central Federal Reserve
Instead of Twelve Will
Be Urged by Com
mittee Selected
ALTERNATIVE PLAN
WOULD PERMIT FIVE
Reduction in Subscription to
Capital Stock of Federal
Banks Also Urged

ao-aad on number of important
amendments to the Owen-Glass~ cur
rency bill. now pending in congress,
and appointed committee of seven TO
go to washington and endeavor to have
the changes Incorporated in the meas
ure.
Members of the conference expressed
the belief that the administration viii
be convinced by the arguments they
will present and modify the bill so that
II will be reasonably satisfactory TO
the banking and business interests OF
the country.
The amendments were presented to
the conference by a committee on reso-
lutions and were adopted after
lengthy discussion by a unanimous
vote.
The following committee was named
by Chairman Hepburn of New York to
go to washington and present the rec
concentrations of the conference TO
President Wilson, Secretary of the
Treasury McAdoo and congress:
James B. Forgan, Chicago. chairman;
George W. Reynolds, Chicago; e. J.
Hill, Norwalk. Conn; r. +. Maddox,
Atlanta: Sol Wexler, New Orleans; Jo-
seph Chapman, Minneapolis, and Festus
j. Wade, st. Louis.
The committee will go to Washing
ton in a few days to begin Its work.
RESOLUTIONS ADOPTED
The resolutions adopted at the con-
ference read as follows:
Whereas we recognize the imperative neces-
sity of Incorporating into the banking and cur
rency system of this country those proven prin
ciples which will provide the most ample credit
facilities with greatest safety. ana currency
based on gold, which automatically ADJUSTS its
volume to trade requirements, in order that the
highest stability may be attained Tor our com
merce. thereby assuring continuity OF employ
ment for the laborer and favorable markets for
the producer. the fundamental basis OF general
prosperity; and
many excellent features, and recognizes certain
principles fundamental in any seientlhc BANKING
system, yet it Is believed that the application
made In WAYS that win more surely avoid a
credit disturbance and more efficiently attain the
desired benefits for the whole people, and
ful operation of new banking law II must De OF
such charater as to warrant genera, aeGepi ,'s3i
tutons, both state and national, country and
city; therefore, be 1t
changes in the bill, convinced that, while not
rendering the plan IDEAL these changes WouiQ
render organization more probable, Woul0 dfoiu
q credit disturbance and provide system fhat
would gradually develop into bulwark for the
protection Of whole commerce, benenting
alike, and in equal measure, the laoofef, the
farmer and the business man
A summary of the important change
in the currency bill proposed by the
resolution adopted by the bankers
conference follows:
CHANGES SUGGESTED
s'That there should be established one
central federal reserve bank instead
of twelve, and if this is found mex
pedient, the number should not ex-
ceed five, with as many branches as may
be required.
serve banks be made voluntary instead
of compulsory on the part of national
banks, the same as provided in the case
OF state banks.
That the amount of the subscrip-
tion to the capital stock of the fed
eral 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 po-
litical influence direction of the insti-
tuition be vested in a board of seven,
composed of the secretary, OF the treas
urer, as 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
selected by the member banks. The
terms OF Office are fxed at three, six
and nine years at the beginning, and
nine years for all members after the
first term. The salary is fixed at $40, 900
year, with an allowance for neces-
sary travelling expenses.
That three of the directors of re-
gional banks shall be experienced in
banking and live in the district.
That the directors of the regional
banks be authorized TO elect their own
designated by the federal reserve board
shall manage the institution.
That the lappointee of the federal
reserve board shall not act as chair
man of the board of directors of re-
gional banks, but shall transact the
duties of government representative.
ADVISORY BOARD ABOLISHED
That the advisory board of the fed
eral reserve bank be abolished, as un-
der the plan proposed the bank mem
bers would have representation on the
regular board of the reserve bank
THAT the authority of the federal
reserve board TO compel one member
bank to rediscount paper of another
member bank be made optional instead
THAT the cumulative divisions all
lowed member banks out of the earn
1ngs on their shares in the federal re-
serve bank be INCREASED from to s pei
membership in federal reserve banks
be required to adopt the word, ma
tional,' in. their corporate names.
That all government money be de-
posted In federal reserve banks ex-
cept the per cent redemption fund
of outstanding national bank notes
THAT federal reserve banks be pro
hibited from rediscounting paper drawn
for carrying of securities other thar
stocks and bonds.
That the country banks required
reserve be reduced from 15 to II pei
cent and that not less than per cent
be kept in the bank vault, not less
-eral reserve bank and the remainder
with the correspondent
That the reserve city banks REQUIRED
reserve be fixed at 1s per cent instead
of 20 and 25 per cent, as by the for
mer variable scale. OF this 8 per cen,
is to remain in vault. per cent in :
federal reserve bank and 6 per cen,
with the correspondent In a central re.
serve bank.
FARM LOANS EXTENDED
That the time limit on farm loans
be extended from nine to twelve
THAT the entire section of the bill
relating to savings banks be stricken
THAT the federal reserve banks issue
the necessary currency bank notes un.
der the control OF the comptroller o.
the currency instead of having treas
ury notes issued by the government
THAT federal reserve bank notes Il
ne issued by permission of the fedora
reserve boaT 4 by federal reserve bank,
are hereby authorized; the said note.
shall be obligations of the federal re
eeFVs banks Of issue and shall be -,