The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-28

! Democratic policy for the government.
TO use this willingness on the part OF
national banks to cooperate with the
government in the past In order to now
/ force them to underwrite the proposed
national reserve association upon
terms laid down by the government.
and without giving the banks represen-
| tation on the federal reserve board,
| or proper control OF funds so invested;
and,
The Savings Banks.
| Whereas, the institution of savings
departments has proven most advan-
/ tageous to the people of our State,
making systematic saving on the part
of the people generally easy and con-
venient. thus largely Increasing the de.
/ posits in banks and the funds avail
able for commercial and general bust
ness purposes, and we see no reason
in experience and practice for the
segregation of any of the capital or
assets of the national banks on ac-
count of savings. departments, this pro-
vision adding much of the expense of
banks because of thesnecessity of oper-
ating practically two sets of books and
aaccounts. And, furthermore no one
class OF depositors should require spe-
cial security in n well organized sys-
TEN, the present system having proven
! its safety to depositors, and II Will be
further strengthened when this bin is
adopted. And. furthermore, in our
opinion there should be no requirement
that will prevent the use of savings
deposits In the general commercial de-
partment OF tho bank. for the reason
that it will cause an enormous contrac-
ton of loans which are necessary to
carry on the usual and ordinary bust
ness of our people; and,
Whereas we feel that In order to
secure the beginning of much need
cd reform ii should not be imperative
that twelve banks be organized at
once. but such number as are organized
(Which. In our judgment should not
be over five) should be permitted to
begin business, and as the system is
proven others can or might be put into
operation, the time limit for organiza-
ton also being reasonably extended.
and,
Whereas, In our judgment the amount
of subscription of member banks should
be reduced to a. total of 10 per cent of
the capital of the subscribing bank.
and,
Whereas in our opinion the federal
reserve banks should not be operated as
money making institutions, either for
the government or the stockholders,
yet there should be reasonable earnings
made by these banks. and 1T is fair to
ask at least per cent dividends upon
the stock taken by the individual
banks. the balance of the profits being
distributed between the government
and the banks equally, on the basis OF
deposits. no interest being paid on de-
posts either to government or banks.
and.
whereas as matter Of principle
and patriotism. we believe the notes
issued by the federal reserve banks
should be the obligations only OF the
banks; and.
Whereas, we believe that bank ex-
aminations can he more intelligently
made by the examiner who has be-
come familiar with the banks in
given territory by repeated examina
tons;
Endorse Former Resolutions.
Therefore, be 1t resolved. That we
endorse the following resolutions
which were adopted unanimously by
the executive council of this assoCia-
ton ut the meeting held in Richmond
on September 6, 1918;
r Resolve. That while recognizing
the patriotism and ability which char
acterize the currency measure now
under con sid Grafton by congress- we
desire TO record our convictions that
the enactment of the bill In its pres
ent form would not be acceptable 10
the banks of this State, and would,
in our Judgment, involve the surreu-
der Of national charters by many Of
the institutions in this State; and that
we earnestly suggest that each bank,
national and State, should advise our
senators and congressman of our con-
victions, and invoke their efforts TO
obtain notifications. which we believe
Will be necessary to secure the etfi
cheney of the banking and CONNER
cial interests Of this State;
Resolved. That in our belief the