The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-14

discountinG argument state banks
not members of the system. he said,
will experience no difficulty in redis-
commercial paper on the open market
or by direct sale of representatives
of The Federal Reserve Bank
TIE most potent influence that will
lead State institutions to enroll in the
reserve system, said MIR. Willis, nill
be the clearinghouse function OF the
system and the better facilities the
system will offer member banks for
domestic exchange. He discounted as
idle the fear that the Reserve Bank
system VIII mean tho extinction of the
national banks. More national banks
than ever, he pointed out, have been
established since the reserve ACT was
made law.
President Golf noted with regret that
y. ]. Hemphill, president or the Guar
anty Trust Company, of New York, who
mad hoped to take part in the delib-
erations of the joint session, found it
impossible to be present. He read
letter from Mr.. Hemphill outlining his
views pr the Federal Reserve Bank
question.
IiEsMPIIILL SENDS LETTER
OUTLINING Ills VIEWS
II feel certain that the trust COM
panicS Will cooperate with the va
rious regional banks so as to make the
whole system a complete success and
IN this way serve the best interests of
the people at large" wrote Mr. Hemp
bill. The broad law recently adopted
by the state of New York WILL in my
opinion, prevent the trust companies
organized under the laws OF that State
from becoming members OF tho Federal
reserve system until the Federal re-
serve act is amended along similar lib
cral lines. anticipate. as the opera
ton of the system indicates the neces-
sary cancellations, that these will be
enacted"
Mr. llcmphilrs views were directly
in lire with the general conviction OF
the delegates that the reserve act
stands i'm need of amendment, and the
communication was received with ap-
plause.
y. E. Hepburn. chairman of the board
of directors of the Chase National
Bank. New York. and chairman OF the
Currency Commission of the American
bankers Association. who. like Mr..
lienphill. was unable to be present.
scrt Il statement of his views which
was, was read BY President Golf MIR: Hep
nurn played prominent part in the
hearings before the Congressional
Banking Committees. when the reserve
act was under consideration.
SHOULD GIVE SYSTEM
SUPPORT, SAYS HEPBURN
1T is cminently desirable that all or
as many OF our banking institutions
as possible. become members of the
! system and give II their practical sup
port" wrote Mr.. Hepburn.
he law involves many and radical
changes from the present methods of
credit procedure. 1t will necessarily
take somc little time for the managers
10 inauguratc this new system and
bring 1T to state Of efficiency. The
system will start with substantially all
the national banks of the country
IT may be helpful rather than
otherwise If trust companies and State
banks refrain from Joining at the out
set, ana give the managers n little
time TO get the new system into good
WORKING order. The mechanism once
established. the joining of additional
or new banks may be very easily eff
fected The test of the law I'm practical
operation may show defects which can
and should be removed by LEGISLATION.
have no doubt that Congress will
readily respond to any reasonable de-
mand FOR legislation of this character.
II assume that II will be agreeable
10 inc Federal Reserve Board If State
banks and trust companies refrain for
a little time from joining the system. \"
PRESIDENT ARTHUR REYNOLDS
EXPRESSES CONFIDENCE
The presiding officer called upon
President Arthur Reynolds, of the
American Bankers Association. who
was seated on. the platform, for talk.
Mr.. Reynolds responded with n short
informal discussion of the subject be-
fore the body, Indicating that he Will
treat 1t at greater length In his adj
dress to the general association o-day
President Reynolds Joined preceding