The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-24
Suggests One Huge In
stitution to Dominate
Financial System.
THIS NEW PLAN
WE'LL RECEIVED
Undoubtedly Will Be Taken Up
by Senate Committee in Con-
nection With President Will
sons Concessions on Re-
gional Reserve Cur
rency Proposal.

Washington. October "a gov
ern'nent controlled and operated cen
trail bank to dominate the financial
system OF the country to-day entered
the Legislative arena as a rival OF the
administration regional reserve cur
rcncy plan. Frank A. Vanderlip. presi-
dent OF the National City Bank of New
York, eXpla:ncd the new plan 10 the
Senate Banking and Currency Commit
tee. who he said. had expressed ap-
proval Of such Il plan
Under his proposal the government
through board of seven members :,p-
pointed for terms OF fourteen years
and receiving salaries OF ZOO or sI7,-
900 year, would establish q huge
bank with 100000, 900 capital which
would control financial conditSons by
powers conferred on Il to issue money.
to rediscount commercial paper for
banks and 10 concentrate the country 8
gold reserve.
Mr.. Nanderlip suggested that IL pos
sibie the stock of this institution be
held by the public as an investment
security. The stock would have no
voice or vote in the banks control.
which under all circumstances would
rest entirely with the government. Mr..
Vanderlip pointed out that his bill
differed from the administration plan
in that il absolutely eliminated the
banks from participation IN the ad
ministration OF system which would
control the issue of currency. The
Nanderlip plan differed from the So
called Aldrich plan in that the latter
provided for central and subsidiary
banks owned and controlled by the
member banks themselves.
In Favor of Principle.
Senator'S 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.
.This---is- the plan whcih Senator
Hitchcock and have favored since
consideration of currency reform be-
gan said Senator Reed.
The Nanderlip plan undoubtedly will
be taken up by the committee in con-
nection with the Presidents conces-
sion that the number of proposed Fed
cral reserve banks could be cut down
from twelve to the number fixed In the
bill without altering the basic princi-
pies of the administration measure.
Senator Bristow said he favored such
a plan because he believed 1T would
operate to prevent n concentration OF
credit and money.
Mr.. Nanderlip said he had talked over
his plan with a few bankers and that
they favored it.
do YOU think bankers generally
would accept 1t or would we have
another Boston convention If we adop-
ted it?'' asked Senator Reed.
VIII shock mt First.
u think bankers ut first generally
would be somewhat shocked by the
idea of absolute government control,
answered Mr.. Vanderlip. but | think
when they understand, the safeguards
thrown about the appointment of tho
controlling board and the quality OF
men who would be named. they would
accept it with great favor. It elm
mates The provision of the admins
tration bill. which would force banks
to supply part of their funds to the
national system, eliminates the objcc-
tionable provision that would compel
mutual rcdiscounting among Federal
reserve banks. and provides for the Is
sue Of true bank notes instead of gov
ernment fiat money"
After Mr.. Vanderllp had presented
his plans. the committee heard Jacob
$. Coxey General of the Army OF
the Unemployed" which descended on
the capital In 1898 He urged that the
government take over the entire bank
ing business. issue fat money against
bonds for all public improvements. and
generally eliminate banking operations
on which interest is charged.