El Paso herald. (El Paso, Tex.) 1901-1931, 1913-09-03


Dakota had nothing to gain and would
suffer greatly by being compelled to
withdraw part of their capital from
active business within the state and
send it outside TO a regional reserve
bank.
Always on a PreeipIce.
Il think the senator has drawn the
picture too dark and gloomy" said Mr..
WeXIer. anything that will stabilize
financial conditions will help all states,
with no large financial or industrial
centers. Now there is no stabilizing;
we are always on the edge of a Dreci-
pice."
James B. Forgan. president Of the
First National bank or Chicago and
chairman of the Chicago conference,
and Mr.. Wexler both dWelt with en-
phasis upon certain points
One is that banks, rather than the
federal treasury, issue currency; an
other that a central bank, or not more
than five regional banks, would be
preferable to the proposed u regional
banks; that membership of national
banks in the new federal system should
be optional, not compulsory, as the bill
provides; that the amount of regional
reserve bank capital for which each
national bank must subscribe should be
reduced from 20 percent to 10 percent Of
a banks capital stock. that one re-
gfonal reserve bank should not be com
PEELED to re-discOunt the commercial
paper held by another.
Advocate Central Bank.
we do not ask or expect that men
named to the federal reserve board
should remain members of any bank"
said Mr.. FOrgan. Our contention is
that men who have served as bankers
should have a voice in the administra-
ton of the national banking system"
Both Mr.. Wexler and -4r. Forgan ad-
vocated a central bank as preferable TO
the proposed system
Objections TO the provision giving the
central board permission to remove a
regional reserve board director was
based on the belief that this would
make regional reserve directors timid
about using their judgment in passing
on commercial paper.
Objections Raised.
The kind of national paper currency
the American Banks association would
like established in place of the United
states treasury notes proposed by the
administration measure was outlined
to the committee today by bankers,
who declared they did not favor a set
currency or notes secured by the gen
eral credit of individual banks because
Of the danger of wildcat banking"
We believe the notes should be is
sued by the federal reserve board to
the banks and by them to the public
should be responsible for the whole is
sue of notes." said Mr.. WeXler
Senator Reed. Democrat, declared he
was welded to no particular plan,"
were questioned with freedom, indicat-
ing that the committee would take up
the administration bill with open minds.
The chief evils of the present system,
WeXIer said, were the lack of a flex-
ible circulating medium" and the fact
that banks have mo place to go for
rediscount"
Would Concentrate Reserves.
I'VE believe the reserves or the coun-
try should be in one big reservoir.
said he, where they are readily &C
cessible rather than scattered in co.
600 or more little piles, where they
can be of little benefit to the country
in general"
An increased issue of government
bonds and an increase in the bond Sc
cured national bank currency would
not meet the present needs of currency
reform Wexler thought.
The bankers again suggested the ad-
vantage of single central bank, eS-
peciaIly as to fixing of rate of dis
count for all parts of the country. Mr..
Wexler said, however, that he did not
believe the federal reserve board, un-
der the administration bill would ar
bitrarily try to fix rates for all parts
of the country.
The rate of discount would really be
fixed by conditions in the region of the
reserve bank. he said, and the federal
reserve board simply would promul-
gate that rate.
To Raise Legation.
The house passed the senate bill to
raise the American legation in Spain
to the rank of an embassy with an
ambassador to receive s17,5OO a year.
Would Stop Prosecution.
Representative Levy, of New York
has introduced a resolution to instruct
the attorney general to suspend fur
Their proceedings in the federal dissOlu-
lion suit against the United States Steel
upon the ground that the
Afrr, in, a 81 had
pended S1,575, 100000 for labor, de-
creased the cost of producing steel and
lided in increasing iron and steel ex-
1Orts.
Save your baggage checks for Long l
we'll Quickest delivery in Fl Paso.-