The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-11-29
WANT STATE BANKS
Of SOUTH EMBRACED
IN THE NEW SYSTEM
Board Is Asking for Sugges-
tons From Bankers
About Rules to be
Adopted

Washington, November 2S-(Special)
While no hearings will be held by the
federal reserve board on the prospec-
tive rules for the admission of state
banks and trust companies to the fed
eral reserve banking system, Governor
Hamlin of the board today expressed
hope to the correspondent of The Age
herald that officers of such istitutions
would contribute in writing sugges-
lions under this head. Not even infor-
inal hearings or personal conferences
Will be granted by the board
From several sources 1t was learned
that suggestions from the south will
be especially welcome to the board the
number of state banks in that section
being described as much larger. in pro-
portion, than in any other area of
the country. Several of the strongest
trust companies in the land are said to
be situated in the south. and also it Is
felt in financial circles that the state
banks of the south would prove valu-
able acquisitions to the system.
Although the board almost daily is
considering the prospective rules, it has
hot yet got so far as to be able to
prepare even a tentative draft Many
intricate and complicated questions had
| arisen. explained Mr.. Hamlin. which
| would require sometime for settlement.
For instance, he said, there was a ques-
ton as to whether state banks enter
Ing the system might retain their right
| to lend money on real estate. Also. he
added, the subject OF branch banks of
| state hanks
one of the moment. One bank in the
south. he said, had been reported as
| having 90 branches, and the question
now was as to the admission of such
| branches, and their status If their
| parent bank be admitted.
Regulations for the admission of
state banks and trust companies were
promulgated last February by the re-
serve organization board. consisting of
Secretary McAdoo of the treasury, Sec
| rotary Houston of the department of
| agriculture, and John Shelton Williams
comptroller of the currency, but these
have no connection with the rules yet
to be formulated.
Scores, almost hundreds of sugges-
tons, have been received from state
hank and trust company officials said
Mr.. Hamlin, and had been found OF
great value by the board in its work
| anu ne reiterated MS nope tnat others
too, would contribute, especially from
| the south
The south has a champion in the board
In the person of William p. @. Har-
ding, and through him the other mem
bers also have developed great inter-
est in that section. Moreover, the
| etringency caused by the cotton situa-
ton has directed special attention tc
the southland. and for that reason II
figures nightly largely in the consid-
Grafton of all financial questions.
Amusement, rather than excitement
| or even interest, was aroused In Wash-
ington this week by a published re.
| port that Mr. Harding and three othel
members of the board would resign be-
cause of Opposition" to the movement
to afford relief In the cotton crisis
The idea of Mr.. Harding being opposed
to any step toward helping the south
was ludicrous on its face, while the
three members mentioned with him also
| arc strong friends of that section.
To the correspondent of The Age
Herald Mr.. Harding treatd the report
as Jest. although he and Mr. War
| burg, who also was conspicuously men,
| tIcned, later complied with the formal
Try of issuing a categorical denial OF
the report. c. &c. s.