Evening star., 1914-07-08

the board must soon come into actual
existence, as the act creating it provides
that members must take the oath and
qualify within fifteen days after notice
of appointment. These three active mem
bers of the board, together with the con-
troller of the currency and the Secretary
of the Treasury, give the necessary hve
yoteS out of the total of seven required
TO pass any measure through the board.
1t is known that the three members
already confirmed and the Secretary OF
the Treasury and controller of the cur
rency, who are ex-officio members, prefer
to wait if possible until the complete
board is named before rushing through
organization plans. Several experts have
been called upon to outline the steps
necessary to create the federal reserve
banks in a satisfactory and speedy man
ner. These reports are ready for the
consideration of the new board as soon
as it is convened. The designation OF
one of the members OF the board as
governor and another as vice governor
will devolve upon President Wilson.
Provision for Organization.
But the federal reserve board will not
organize except at the will of the re-
serve bank organization committee.
which is empowered by law to fix the
date of the first meeting The law
reads: The first meeting of the federal
reserve board shall be held in Wash
lngton, u. c., as soon as may be after
the passage of this act, at date to be
fixed by the reserve bank organization
committee
Without legal advice it is doubtful if
the organization committee will regard
itself as authorized TO call meeting
of the federal reserve board until the
entire board is properly constituted
II will probably be three weeks be-
fore all returns are in from the cleo
tion now in progress to select directors
The banks are selecting four, and the
federal reserve board must select two
directors for each federal reserve bank.
Cities to Enter Complaint.
One of the early duties of the new
board viii be the consideration of COM
plants from cities which feel they
should have been granted a federal re-
serve bank. New Orleans, Baltimore
and Pittsburgh have indicated their
purpose to make representations i'm
mediately.
Indications now are that prominent
bankers throughout the country regard
the federal advisory council provided for
by the act as Il far more important body
than is generally Understood ne COuN-
Gil is TO consist OF one member from
each federal reserve district, selected by
the directors Of the federal reserve bank
in that district. and is to meet at least
four times year m Washington and
oftener, II called by the federal reserve
board. The council may also hold ad-
diticnal meetings whenever it sees lit II
is 10 select its own officers and adopt
its own method OF procedure. 1t is pro-
yided in the act that the council shal
Ia
on general conditions and may call for in
formation and make recommendations in
regard 10 discount rates, rediscount bust
ness, not issue reserve conditions and the
general affairs of the banking system.
A majority of the members Of the
council is TO constitute quorum.
To Have Important Function.
While the powers of the council are
purely advisory, it is believed by many
bankers that membership upon it will
be nearly important as membership
on the federal reserve board. The coun-
ell will have only twelve members. one
for each federal reserve bank, and its
members will be in such close touch
with the affairs of their district, as
well as affairs OF the federal reserve
board in this city. that much depends
on the character of men named for the
council. They will be the go-between
who will keep the board posted on
conditions throughout the United
States, and their recommendations will
be Of vital Importance to the board.
Word from Paul NJ. Warburg, the
New York banker. as to whether or
not he would consent to allow his NOM
ination to be member of the federal
reserve board to remain before the Sen
ate, after his request that it be with
drawn. was anxiously being awaited in
administration circles today. President
Wilson had urged Mr.. Warburg to re-
consider his decision
Hope that Mr.. Warburg might change
his mind and take the place was based
upon reports that he was wavering.
On the other hand Senate banking COM
mittee members We're said to believe
that Mr.. Warburg had finally elimi-
mated himself by his declination to ap-
pear bezore the committee for examina-