The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-10-30
to Federal Re
/. serve Act Aimed at Office
Held by John S. Williams
IMMEDIATE PAYMENT OF
FUNDS DUE ADVOCATED
Han to Increase Usefulness Of
Federal Reserve Banks Ad-
vocated by Governor George
Seay Is F avored

| washington, Oct. 2a.--Important
snandments to the Federal Reserve
bet. which are certain to provoke Bit
Isr controversy, viii be proposed at the
ksxt session OF Congress.
Three anne ndments are expected 10
BE- offered as follows:
Ftrst-A provision to vest In the Fed
PraI Reserve Board instead of the Sec
ttary OF the Treasury. the control of
roysrnment funds so far as their de-
osit In reserve banks or other banks
concerned.
Sec0nd-A provision abolishing the
Rice Of comptroller Of the currency
n the ground that with the formation
81 the Federal Reserve Board the
efnptrollership has become superiiu-
us-
Thtrd--A provision reducing the liza =
iiities OF member banks for payment
y capital riock Isl the reserve banks
ad possfbiy leaving the control Of at
sast one third of the reserve funds
objeet to Anal payment by the banks
p the member banks themselves as
*as the care under the old currency
rstern.
Warts Reduction Of Liability.
An appeal for q reduction OF the liza
fiities of the banks for capital stock
ayments was made BY C. n. Rosworth.
eserve agent of the Federal Reserve
Fank OF Chicago, In n speech. before
he Indiana Bankers Convention a short
me age. The suggestion tina. the
pntrol of at least one third Of re-
give funds now subject TO snal pay
tsnf In the reserve banks be returned
1.-The control Of the member banks
fas adopted ct the recent convention
the American Bankers Association,
Seattle.
Friends Of she administration are
kpeCfed however. To oppose both OF
aes& suggestions vigorously on the
round that they would tend to pre-
mt the expansion OF the new cur
kucy system into the great financial
ructure that IL was intended to be-
hey regard the proposed step Us de-
xned to limit the activities OF the
eSArve system practically To the scope
the work of the past year In which
be Federal Reserve Beard has been
pins what it regarded as merely The
Preliminary work of installing the new
tstem.
Seay's Suggestion
Persons who have faith in the new
1rrency system can be counted on to
Akc counter proposals 10 those al
lady outlined designed mt to hinder
prevent, but TO hasten The develop
lent OF the currency system. Gov
rnor George j. Seay, OF the Federal
eterye Bank in Richmond, in a re-
INT paper which attracted great
al OF attention In banking circles
3vocatcd the immediate payment Of
10 reserve r,eney which the Federal
pserve act requires shall be paid into
10 regional banks 1t specified times.
the future. He had in mind q more
kpA progress by the reserve insti-
Lons In the fieid>of banking business
nd propose that these institutions
provided with the funds with which
conduct this business.
There are reasons for believing that
10 Federal Reserve Board is now
wing serious consideration to the
m outlined by Governor Seay with
vttw possibly to Incorporating II In
amendment to the reserve act.
bpne time ago the board appointed
bcommittee to formulate an amend
6ut for submission to the next SEES
On Of Congress, and 1t Is understood
ut this committee has given favor
~ consideration - the Seay plan.
The proposal to abolish the ONCE
mptroller of the currency is GER
IN to meet with a large measure Of
bproval in many quarters interested
the Federal reserve system.