Evening star., 1915-11-17
Reserve Board Considers Plan
for Its Men to Examine
Banks.
ACTION RECOMMENDED
by ADVISORY COUNCIL
John Shelton Williams Duties Could
Be Taken Over Legally Under
New Currency Law.

The federal reserve board had
before it today a recommends
ton of its advisory council that
the Office of the controller of the
currency, which has direct super
vision over the operation of all
national banks, be abolished.
A counter proposal provides
that member banks, including
national banks, hereafter be ex-
amined exclusively by the board S
examiners.
Advisory Boards Proposal.
The action of the council, said to have
been unanimous, was based upon the
ground that the controllers office had
been made unnecessary by the estab-
lishment of the reserve system, and
that there would be duplication of
work. since examinations Of national
banks, one of the principal functions of
the controllers office. may be conduct
ed by reserve board agents at the re-
quest of a reserve bank.
The proposal concerning the con-
troller's office was one of several made
by the council in response to re-
as to legislation to be urged upon Con-
gress at the coming session. Abolition
of the Office of controller of the cur
rency was proposed by the advisory
council. as the sentiment Of its meet
Ing yesterday. attended by nine OF the
n1vYo k,nr nf q
The council recommended also amend
ment of the reserve act to permit MEM
ber banks to subscribe to the stock OF
joint branches in foreign countries.
to permit national banks to open
branches in cities in the United States
and to permit member banks to count
federal reserve notes as reserves. Sew
eral other suggestions considered of
minor importance were advanced.
Finances After the War.
There was general discussion of
from the board for opinions
on how to reduce the existing over
expansion in loans and how to guard
against evil effects that may be ex-
pected to result to- the financial inter-.
ests OF this country following the Euro
pean war.
Each of the reserve banks designates
a member Of the council. Those at
tending today were James B. Forgan,
Chicago; Daniel 6. Wing, Boston; w.
s. Rowe. Cleveland; George G. Seay,
C. T. Jaffray. Minneapolis: E. F. Swim
ney, Kansas City; ]. Howard Ardrey,
Dallas, and Archibald Kains, San Fran
cisco. ]. P. Morgan of New York. Levi
L. Rue of Philadelphia and Rolla Wells
Of st. Louis were not present.
I'D,
reserve districts is a question that has
been postponed by the federal reserve
board. and may not be taken up for
several weeks. The problem will wait
until every member of the board can
be present to discuss and determine it.
Appeal Hearings Postponed.
The board will not take up the ap-
peal of member banks in various dis
tricts for changes in the location of re-
serve banks or in the lines of the re-
serve districts. It is deemed inadyis-
able to pass upon any Of these ques-
tions until a general policy has been
agreed upon.
a doubt as to the power of the board
to take such action. 1t was said that
counsel for the board had expressed his
doubt on the subject. Four Of the
seven ihemoerS' however, are UNDER
stood to favor readjustment, though
none is inclined to press for a decision
to the point of causing friction.
The federal reserve board will not for
some time consider the recommenda-
tions Of the advisory council recon-
mending the abolition of the Office of
In fact. the matter is not
the federal reserve board excepting
the Secretary of the Treasury sat with
the advisory council yesterday during
its consideration Of advisory matters.