The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1913-10-31
CURRENCY PLAN OF
ADMINISTRATION HAS
RIVAL PROPOSITION
ONE GREAT CENTRAL BANK Elk
PLANNED TO SENATE COM
MlTTEE.
FAVORED BY MANY MEMBERS
Plan VIII Be Taken Into Conside'a-
ton in Connection With the Recent
Concessions of President wilson
Regarding Federal Reserve Banks

loN, Wv
ernment-controlled and operated cen
trail bank to dominate the fnancial
system of the country entered the
legislative arena today as rival OF
the administration regional reserve
currency plans. Frank A. Vanderbilt,
president of the National City Bank
of New York, explained the new plan
/ to the senate banking and currency
committee. He had evolved the
| scheme as a result of conferences
with members of the committee, who,
he said, had expressed approval OF
such plan.
| Under his proposal, the govern
ment, through board of seven men,
bers appointed for terms of fourteen
years and receiving salaries OF $l5,-
900 or $17,50O year, would estaD-
fish a huge bank with $1OO,OOO,OOO
capital, which would control financial
conditions by powers conferred upon
it to issue money, to rediscount com
mercial paper for banks and to con
centrate the country's gold reserve
Mr. Vanderlip suggested that ii pos
sible the stock of this institution
should be held as security. The
stock would have no voice or vote II
! the banks control, which under al
circumstances would rest entlfel.
with the government Mr.. Vanderlil
pointed out that his bill differed from
the administration plan in that 1t az
solutely eliminated the banks iron
Iparticipation in the administration
1.-THE system which would control tn
Tissue Of currency.
II In the pending bill the banks woul
flown the stock and elect six OF tn
nine directors of each of the reglons
reserve banks, which would issue Gu
rency, make rediscounts and mol
bank reserves under the control
the federal reserve board The VA
derlip plan differed from the so-calle
E A,drich plan proposed by the nations
monetary commission in that the la
ter provided for a central and suDsi
iary banks owned and controlled |
the banks themselves
:, Senators Reed, Briston, Hitchcos
and O'Gorman of the committee e
pressed themselves as in favor o. q
=. principle embraced in the Vanderl
ng plan. .., Come.
III Hitchcock and | have favored sin
consideration of currency reform
III gan" said Senator Reed. The OF
''s question is whether it is not propos
Il in concrete form too late to make
advisable to alter so radically
ny provisions of the bill under consid
:. alton"
w The Vanderlip plan undoupte
W. will be taken up by the committee
'no connection with the Presidents. G
gs- cession that the number of propo
YIN federal reserve banks could be
down from twelve to the number Il
in the bill without altering the b'
principles of the administration M
ure.
Senator Bristow, during the exs
nation of Mr. Vanderlip, said ne
vored such plan because ne ne
ed it would operate to prevent a
Icentration of credit and money.
Mr.. vanderip said that he had
ed over his plan with few ban
and that they favored it.
"Do you think bankers gene
would accept it, or would we have
W. ,other Boston convention If we a.
can ed it?" asked Senator Reed.
ex- 81 think bankers would be
on what shocked at first by the ids
rum. absolute government control"
swered Mr.. Vanderlip, "but
when tehy understand the safeg'
thrown around the appointment
rCr controlling board and the quail
men who would be named, they
accept it with great favor. 1t
mates the provision of the admin
49, 80 ton bill which would force han
cience supply pa ou,,;notes the
:. tional provision that would c
A.. mutual erdiscounting among
US reserve banks, and provides &c
- issue of true bank notes inste