The Birmingham age-herald., 1913-06-27

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tional banking system to overcome the
strong prejudice which prevailed in Con.
gress in war days against the fostering
by the federal government of banking
system. Nothing but the exigencies ol
war would, Mr.. Thompson used to say
have made the passage of the nationa
banking act possible. Had 1t been pro.
posed at that time to create a federal
board OF absolute and ultimate control
similar to the board which will be created
If the contemplated banking and currency
bill is adopted by Congress at this session
an insurmountable obstacle to the passage
OF the national banking law then would
have been raised.
Much that MIR. Thompson used to say
will undoubtedly be echoed by those who
take part In the conferences which will
be held by bankers from this time until
the bill Is disposed of by later Con-
gress.
The Acceptable Features
1t is spoken of by bankers of this city
as extraordinary, probably unprecedented
that at a single session in Congress leg
islation is under consideration, and likely
to be adopted, which will radically change
the tariff laws and policies and also rad
ically change some features of our ma
tional banking system.
popular interest in the amendment of our
national banking system is regarded as
an extraordinary phenomenon. The pre-
sumption has been strong that nothing
would be accomplished until some years
have passed in the direction of the reform
of this banking system, although some
preliminary steps might be taken toward
that end. Suddenly it is discovered thai
practically the entire country is in sym
a., L.
jority of the banking and currency com.
mfttee of the House SO far as approval oi
well considered attempt to secure refor
nation at this session Of Congress is con
cerned. Yet 1t is not regarded here a.
astonishing that this should be SO. Al
effective, thorough and far-reaching ag
itation in favor of reform has been car
ried on for about five years. Some of 4
was inspired by the American Bankers
association, whose special committee, fiv,
years ago, formulated recommendation
for the consideration of Congress. Muci
of it has been conducted by an associa
ton whose membership is made UP O
merchants and other business men who
as a whole, represent whatever is bes
In American business methods. This agi
tation has been entirely distinct from tina
carried on by the American Bankers as
sociation. The seeds which have thus
been sown are now suddenly bios
soming and are likely to yield a harvest
That is a feature of the present situa
ton which is regarded as most satisfac
tory. 1t points to legislation which viii
break deadlock which has long existed
This legislation may be experimental, bu
II Ii proves to be 1t can be corrected al
subsequent sessions of Congress.
If it were not for the provision of tht
bill which provides that the ultimate anC
exclusive authority over the banks is tC
be placed in a board whose prominenc'
and authority are due to politics the pro
posed measure would probably be fully
accepted by the American bankers, al
though there are some features of It which
experience would probably show are fal
from perfect.
The bankers say that the bill as it nov
stands raises a profound issue, one which
is represented on one side by the argu
ments of those who say that the govern
ment should be taken out of the banking
business and represented on the othel
hand by those who are sincere and earn
est in their belief that the government
should be the supreme power In the ma
tional banking business
A Good Time
The present time is spoken of as es
pecially favorable for important change.
in our banking system. The certainty o.
tariff revision has enormously affected
our international trade. This explains IL
great part the very heavy increase Of
exports over imports during the sprins
months This relation Is likely to be con
tinued until late in f7e ~" The United
States, 1t is expected. ~fii sr1otsT increase
its credit balances In 4rrcpe ~ ditior
the banks not only asae W Atlantic
coast, but in the interior. & con
serve their resources ant a edeC
SO we'll that the predictit ado
of comparatively easy MOI Hs.t'sll
There should be- therefore, tsI ans ~ fns
domestic or international sitsckiqH ss
of itself would cause embarrf 14t s'
the time when an improved bailka Cav
passed by the present Congress-. 9ps bts
effect.