The Birmingham age-herald., 1913-03-01
Recommendations of COMMITTEES

Recommendations of the committee as
set forth In the report. and as embraced
IN the bills accompanying the report,
urged the following reforms:
Clearing house associations of which
national banks are members should be
required to become bodies corporate of
the states in wloch they are located and
every solvent and properly managed bank
or trust company should have the right.
enforcible at law, to become and remain
member
Regular periodical examinations OF
members by committee of the clear
ing house association should be pro-
hlblted and instead all such examna
tions should be conducted by public
authorities"
The committee would give the gov
ernment supervision of clearing house
certificated, and would prohibit fixing
rates by clearing houses for collec~
ton of out of town checks, discount or
interest on deposits"
AS to the New York exchange the
committee recommended in part:
THAT Congress prohibit transmits
sion by mail. telegraph or telephone
from one state to another orders to
BUY or sell quotations or other infor-
nation concerning transactions on any
stock exchange, and also prohibit ma
tional banks from buying or selling
N-N~iioi tiie-SS Sutil. eNtild we're
a body cofporaterJ q State or terri
tory in which it is located.
Require margin of not less than
20 per cent on all purchases of stock
prohibit as far as possible execu-
ton of substantially simultaneous or
ders proceeding from the same person
or persons to buy and sell the same
security to crate an appearance of ac-
tivity therein, and any orders, the pur-
pose of which is to initiate or depress
the price of any security
state in it's charter the conditions
on which issues of securities shall be
admitted or removed from the trading
list, and provide for a judicial review
of its action in this regard.
keep books of account. showing
the actual names and transactions of
customers and give access thereto to
the Postmaster General
Among the regulations for the re-
striction of national banks the COM
mittee sets forth:
Prohibition of consolidation of two
or more banks without APPROVAL of the
comptroller of the currency; prohibi-
ton of directors serving on the boards
of more than one bank in the same
community forbidding voting trusts in
the control of banks; providing for
cumulative voting in the election of
national bank directors; forbiding se-
curity holding companies as adjuncts
to national banks forbidding interstate
corporations from constituting any
banking establishment their sole fiscal
agents: forbidding national banks from
engaging in underwriting syndicates,
allowing national banks to invest %
per cent of their capital in state city,
county or corporation mortgage bonds,
if the corporation issues have paid
interest regularly for five years re-
form of the system of railroad reor-
ganization to conform with the scheme
outlined in the British law which
places reorganization under the control
of the courts. giving the interstate
commerce commission the power to su-
pervise reorganization plans placing
railroad security issues under control
of the commission; forbidding officers
of national banks from borrowing from
their banks; providing for publicity for
loans made by director from his
bank: making it a crime for officers
or directors to accept any compensa-
tion for loaning a banks funds; pro-
viding publicity for the assets and for
the stockholding lists of national
banks,