The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-10-24
CENTRAL
BANK Ian
OPPOSED

Washington, Oct. 24.-The president
compromisingly opposed to the cur
rency bill submitted by Frank A. Van
derlip, of New York, as a substitute
for the administrator plan He said
he was unqualifiedly in favor of the
main features of the administration
bill.
Government Central Bank.
A government controlled and oper-
ated. central bank, to dominate the
financial system of the country enter
ed the legislative arena yesterday as
a rival of the administration regional
reserve currency plan. Frank A.
Vanderlip, president of the National
City bank of New York, explained the
new plan to the senate banking and
currency committee. He had involv-
ed the scheme as a result of confer
ences with members of the committee
who, he said, expressed approval of
such plan.
Under his proposal the government,
through a board of seven members, ap-
pointed for terms of fourteen years,
and receiving" salaries Of $4,000 or
$17,500 a year, would establish a huge
bank with $100,00O,00O capital, which
powers conferred on it to issue money
to .rediscount commercial paper for
banks, and to concentrate the reserve
gold Of the country.
Mr. Vanderlip suggested that if
possible, the stock of this institution
should be held by the public as an in
vestment security. The stock would
have no voice or vote in the control
of the bank, which would under all
H.
ment. Mr. Vanderlip4 pointed out that
his bill differed from the administra-
ton plan in that it eliminated the
banks from participation of the ad-
ministration of the system which
would control the issue of currency.
In the pending bill, the banks would
own the. stock and elect six of the nine
directors Of each of the regional re-,
serve banks, which would issue cur
sre1cy, make rediscounts and hold bank
reserves until the control of the feder-
al reserve hoards~-The Vanderlip plan
differed from the e, so -called AldEich
plan, proposed fby the national none
tary commission in that the latter pro-
Nided for a; central: and subsidiary
banks, owned, and controlled. by the
member banks themselves. 49,
Senators Bristow, Reed, O'Gorman
and Hitchcock Of the committee, to-
night expressed themselves as in favor
of the principle embraced in the Van
derlip plan.' :e'-... .v.-. . =, -.,,..~ .,.,,
:. This is the plan which Senator
Hitchcock and I have favored since
consideration of currency reform. be-
gam said Senator Reed. The only
question is whether it is not proposed
in concrete form too late to make it
advisable to alter so radically, the
provisions Of the bill under considera-
tion.''-- -,..-.>. -, -. r.;.i = .
The Vanderlip plan undoubtedly will
be taken up by the committee in, con-
11ection. with the presidents concession
that the demand of the proposed fed
eral reserve banks could be cut down
from twelve, the" number fixed in the
bill, without altering the basic prin-
Ciples. Of the administration measure.
Senator Bristow, during the exam
ination of Mr.. .Vanderlip; said that he
favored such a plan because he be-
lieved 1t would operate to prevent,
concentration of credit and money.
Mr.: Vanderlip said he had talked
over his plan with a few bankers and
that they favored it. .,
DO you think bankers generally,
would accept it or would we have an
other Boston convention If we adopted
it?" asked Senator Reed. = -
II think bankers generally would be
somewhat shocked at first by the idea
Of absolute control answered Mr..
Vanderlip, but 1 think that when they
understood the safeguards thrown
about the appointment of the control
ing board and the quality of men who
would be named, they would accept
it with great favor. 1t eliminates the
provision Of the administration bill
which would force banks to supply