Evening star., 1915-11-14
BY I. A. FLEMING.

| lated pE the controller OF the currency
to be answered when the next call
is ordered have really emanated from
the federal reserve board, which de
sires to be at least well posted as tt
| what the member banks are doing
| that rules and regulations may be thu
better prepared to meet existing con
| ditions.
The controller of the currency is al
eN-officio member of the federal re
serve board, as is the Secretary of the
| Treasury. and it is>to be supposed thai
the immense amount of statistics ac
cumulated and accommodating in the for.
mer officials bureau is available fol
the reserve board.
The completion of the first year OF
the operation of the federal reserve
system, it was inaugurated November
19, 1914 will give the reserve board an
opportunity to review the workings OF
the system. to consider whether the
locations of the regional banks are
really desirable. whether or not there
should be twelve or a fewer number
of regional institutions, etc.
Few objections will be offered to the
regional banks remaining at New
York, Boston, Philadelphia, Chica go,
ST. Louis, Atlanta and San Francisco
while changes are possible in some OF
the other four cities.
New Orleans has been placated by the
location of a branch bank there, but
the demands of Baltimore remain un-
satisfied, while the feeling is growing
that a compromise might be reached by
the location of a regional bank in the
National Capital-this in preference to
either Richmond and Baltimore.
The middle western section has ap-
parently too many regionals-Cleve-
land Chicago. Kansas (TifN and
apolis-and it may be that one of these.
certainly not Chicago, will be dropped.
Not Controlled by Government.
The Journal of the American Bank
ers' Association, November number
takes considerable editorial space to
dlsabuse any idea that may be formed
that the federal reserve system is in
any way controlled by the govern
ment, as may have been inferred from
the suggestions from time to time as
to the intentions of the Secretary of
SHe treasury covering deposits of gov
ernment funds in certain sections.
In time the reserve banks will be
the only custodians of government de-
positS, over which the proper officials
Will have withdrawal rights, but no
control as to disposition
The regional banks are separat q
units under supervisory control of the
iederal reserve board, operating under
a law that can only be amended by
Congress, its maker. But the recon :
menoations of the board will count for
much.
The Journal also announces that it
has made poll of the banks to de-
termine the sentiment of American
bankers on joint branches of American
banks, operating in foreign lands, as
recommended by the President, with
this result:
If the reports from which these ex-
tracts are made are representative Of
banking sentiment it is evident that
banking sentiment has not come to any
branches. except that it is a venture
that requires considerable outlay and
that the profits of the venture are
problematic.'
Should Punish Usury.
1t is against the laws of the differ
ent states in the Union to loan money
at rates above the legal limits and the
laws carry penalties
Recent criticism of bankers and
banks in various sections of the coun-
try for charging usurious rates were
made by the controller of the cur
rency, numerous confessions of this sin
by Shylocks here and there over the
country having been reported as re-
ceived.
1t is within the power of the legal
authorities in the sections and in the
instances referred to to conduct prose-
cutions of the violators of the usury
laws and many of the bankers think
that examples made of this ilk of bank
ers would do much more to lessen the
practice than general criticism with
out specification.
Within the legal limits bankers may
make their own rates to borrowers,
they are lawbreakers in exacting high
er rates.
In buying commercial paper or notes
an entirely different proposition arises.
The banker is the sole judge of value.
with the seller on the other end of the
trade.
"our Customer in Argentina"
Under this caption, The Americas, a
periodical devoted to the advancement
of commercial relations between South
America and the United States, pre-
sents a statistical review of Buenos
Aires. Argentina.
The population is cosmopolitan. The
Italians outnumber any one other ma =
tiona.ety in the mixed population, both
in manufacturing lines and as mer-
chants. the sons of Italy operating
1870 factories the Spaniards being sec
ond with 1859 and Argentines third
with 1864.
,Tne Germans have 144 factories and
the North Americans seven.
The Italians have 1888 merchants in
business, Spaniards second with 1922,
while United States progress is marked
by the efforts of forty-four merchants.
Argentina is "a melting pot" for the
natives of the old world, the same as
the United States.
With such a mixed population. the
wars in F.urOpe have drawn heavily on
the available males of the state, and
the problem Of labor is looming up as
serious.
1t would seem. however. as if the
might indicate the difficulty that
Americans may anticipate in winning
trade. We have evidences of the
clannishness of peoples in the United
States. and manufacturers and mer-
chants seeking for trade there will
probably elsewhere throughout South
America where the populations are
probably proportionately mixed
May Change Rule.
1t is reported that the New York
Stock Exchange officials are planning
for radical changes in the methods OF
doing business that will do away with
the complicated conditions of affairs
that attended during the great speeu-
lative movement in securities.
Many traders could not get their
statements from brokers and commits :
sion houses within week of the usual
time. due to the great burden of work
under which clerical forces staggered
and to legislate especially TO proven,
further tieing w Of the odd lot trade
so that odd lot brokers were hours
behind the market in reporting trades