Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-11-20


rapidly losing their pre.eminent stand.
ing as regards amount of business
done and their relative number. A
large number of national banks
throughout the country have an
nounced that II the present bill passes
they will leave the national banking
system and do business under state
charters This would not involve as
much of sacrifice as many suppose,
the matter of disposing of their cir
culation bonds probably being the
most costly part of the change.
It Is apparent then that this pro.
posed revolutionary plan cannot be q
success unless large majority OF the
present national banks and very many
OF the state institutions go into it,.
Let us see what the bankers want and
really insist on In changes in the
present bill. The so called country
bankers, that is bankers outside OF
the reserve cities held conference
at Boston during the American Bank
.ers' association, which meeting had
the pleasure of attending. and adopted
resolutions in part as follows:
Resolutions Adopted by Country Banks
A banking and currency bill Is now
pending In the congress. It's speedy
passage into law is desirable. Any
new financial system adequate to the
needs of the nation must be one that
country bankers, national and state,
can support with Justice to them
selves as bodies corporate, and with
justice to their customers.
Z Country banks, as distinguished
from the banks in the fiscal centers,
represent a number of about Is per
cent of all the banks in the United
States. They bear the burden of ma
tional prosperity in proportion to
their numbers. Legislation hostile to
the welfare Of these country banks Is
of necessity also hostile to the well
fare OF American citizens, whether
farmers, wage earners or business
men. A satisfactory banking system
has long been needed by the people.
Legislation upon this subject has al
ready been too long delayed. The ef-
forts of administration leaders at
Washington to pass this statute at d
special session is to be commended.
THAT government banks have been
purchased by country banks at a price
that would be nnjustified except for
circulation and depository privileges
that attach to them. These bonds are
now selling under par. The good faith
of the nation and its credit must re-
main unimpaired II national bank
notes are to be retired there should
be exchanged for these bonds new
security that will sell upon it's own
merits at 100 cents on the dollar IN
the markets of the world. and banks
desiring to liquidate their circulation
should be given the right to have
their bonds retired at not less than
their face value.
4 2-That any unnecessary restric,
lions placed upon the acceptance and
investment OF savings deposits Is un-
wise.
3-This section Of the resolutions
protested against the clearing OF
country checks by the federal reserve
banks instead Of having> the said
checks sent for collection, as this pro-
vision would deprive the country
banks of the extra charge they now
make for collections of checks and
from the revenue, which is a very i'm
portant matter with small banks.
THAT whatever percentage OF re-
serve is agreed upon should carry
with it the right to keep not less than
one-third OF such reserve, with ap-
proved reserve agents in fiscal cen.
ters.
A bankers conference was called to
meet August %, at Chicago. The
clearing house organizations of the
country and the bankers associations
Of the different states were invited to
send representatives to confer with
the currency commission. This
meeting was held and largely at
tended by representative bankers of
the various sections OF the country
e. J. Hill Of the Norwalk National
bank gave as his report OF the con-
ference the following
The fundamental features Of the
changes in the house bill recon-
mended by the Chicago conference
were, first, representation on the fell
eral reserve board, and Limitation OF
its powers; second, optional contribu-
lions to the capital of the federal re-
serve banks instead of forced sub.
scriptions under penalty OF death;
third, making the new currency notes
to be the obligation Of the banks in
stead Of the government, and their
current and final redemption In gold
instead of gold or lawful money:
fourth, and incidentally to the first
two. the right Of the owner Of the
property to have some voice in the
placing of a part of its reserve funds
with approved reserve agents, as
now, instead Of all being impounded
by law and from the earnings Of
which the government is to abstract
a part.
The American Bankers association,
made up OF $4,000 representative
banks OF the United States, naturally
has taken an active interest in this
great financial question. The recent
annual convention Of the association
held at Boston was one of the largest
attended and most interesting meet
ings that the association has ever
held, on account of the discussion and
action taken on the currency bill. The
currency commission of the associa-
ton, headed by A. B. Hepburn, chair
man of the board OF Chase National
Bank, New York, and including Geo
M. Reynolds, president of the Cont.