The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-02
WILLIAMS'S ATTACK
CALLED I'LL ADVISED
Bankers Deny Effort Here to
Prevent Reserve system
Expansion.
SEE ONLY JUST CAUTION

BANKERS here expressed the opinion
y sterday that the criticism by Comp
troller Williams and the Treasury De
partment Of the Guaranty Trust Com
nany and other big trust companies and
state banks OF discount in New York.
as quoted in Washington dispatches.
was III advised The Comptroller was
reported ~ saving that these New
York institutions have entered into an
organized effort to prevent the further
expansion of the Federal reserv, bank
by remaining out OF 1t.
Comptroller Williams and his col.
leagues in the Treasury Department. II
represent, correctly. they said. have
distorted the facts in presenting such a
view of the attitude of New York state
institutions. II is In tn. opinion OF the
New York bankers further evidence
of the prejudice and personal feeling
against New York which has apparently
animated the present heads OF the
Treasury Department since they took
office.
There is no organized effort among
state Institutions In New York, II was
said. to inJure tho +, deral reserv" sys-
TEN, positively or negatively. Comp
troller Wllams's ideas on the subject
we're described as merely the further sd-
vanccment OF his apparent policy OF try
ing 10 gain public advantage for his
own position by imputing Illicit motives
TO those who diner with Treasury De
partment opinion.
Trust company officials rldlcultd the
idea shat there was even need for an
organized effort TO get large or small
state institutions - stay out OF the
reserve system as al present constituted
They pointed out that all over the coun-
try the same attitude as that held in
New York IL shared 10y state insiitu-
lions Even In the South. where the
combined MvAdoo- Williams influence IL
supposed 20 WELD is greatest power
there Is decided attitude among the
stat institutions 10 remain out OF the
reserve system until its superior sd-
| vantages 20 present state banking laws
are plainly demonstrated
This attitude throughout the country.
said officials Of State institutions, IL
! simply the natural result OF tho fact
. that az present II IL decidedly more adj
vsntag.ous 20 them 70 remain out OF
| the reserve system than TO 20 In II.
said Yesterday that the spectacle not
! only ~ one national bank. the RIGGS
| National. but OF practically every big
! national bank OF New York being su.-
| pected inquired into beyond reasonable
| measure and badgered and troubled Al
most beyond patience by the Treasury
] Department has made deep impression
on trust company and STATE bank Of
fcials II Is such "A strong influence
IN their minds as an argument for
| remaining out Of the reserve system
tina, at meeting last week the PROPOSE
| ton was seriously advanced for = sep
ara,e state banking department exam
'nation or state banks even after join
! ING the system.
The hlg obstacle in the way o' enter
/ ing The reserv. system seen hy the state
/ institutions Is the fact that the reserve
/ act provides no way Tor their with
draWal. once n Other 'han Liquidation
, This to the STATE institutions. stVors
, too much o, coercion 20 be rl.ked. A
way OF withdrawal should he provided.
II Is ma .ntaiuvd officials of the sta -
Institutions say that Il Was not the
advantages Of the reserve system TO
. the national banks that drew them
. into the system They practically had
tu enter through certain cuerCivr pro
v Siors in the act by which they would
have been iriurei II they remained
. uuts.d,
The stat. Institutions say that the
state governments under Wh.gu 'hsy
operate are much more favorable 80
them lr granting liberal privileges thu n
me Federal Government $ Likely 10 he
There is = STATE pride ~ he growth -
IFS financial institutions 10 which = S'a'-
r administration Is responsive
Ia - , ~. i.t \