Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-07-18
More Than Half in u. S.
Take Uncomplimentary
Views Of Plan.
CANVASS SHOWS 1T
Some Institutions Base Oh
lection on Personality
Of Comptroller.

More than half the banks in the
| United states. both national and
state, which replied to a list of qucs-
tons sent them by the Guaranty
| Trust company Of New york, take an
unc"mplimcntary view of the federal
reserve system, says the New York
Ilm'S. out Of 5,3li answers re
IctlVed LOO were generally favor
ablo to tho law; l733 were unflyor-
able, ana IS11 wcra noncommjttu
copy of the question was sent to
everyone of the 25,O00 banks in the
United States. and the 5,344 replies
represent the Views of every section
Of me country.
The Guaranty Trust COMPANY it.
self the largest institution outside Of
the reserve system. draws no conClu-
Slois from its summary and poiats no
moral, but one Of the officers said
that 1T probably will not be very
comforting to tho federal reserve
board and the sponsors of the act to
learn, as they will from a perusal of
these answers. that banks maintain
ing critical attitude toward the |
law outnumbcred those more favor !
ably disposed while those that are 1
noncomEiittal exceed in number either |
of the two classes"
The act became operative on No |
vembcr 16. 1914. so that the banks
which approve or disapprOve of its
workings had Is months to study its
operation before making their crt-
cisms. 1heS" cover many points, not |
a few Of the witnesses basing their
objections In part on the personality
OF the present comptroller Of the cur
reI cy.
OF the 1,cGO favorable replies,
l"29, or 20 per cent, came from
member bankers. and j31. or SO per
cent, from nonmembers. or the 773
unfavOrablc replies, LOSS, or 81 per
cent, came from members. and 6S5. or
80 Per cent. from nonmemhers
National banks. which mad no
choice in tho matter of becoming
members OF the now system. offered
constructive suggestions in their an
swers. which have been tabulated
thus:
General approval 636: favor one
central bank 1876; IN favor Of abolish
ing comptroller's office 20S; suggests
guarantee of deposits a. pertnit part
Of reserve 20 be kept with CORE
spondents Sc; membership of state
bluRs necessary for success OF system
-; permit federal reserve notes to be
counted as legal reserve %.
From the same class ~ banks came
the following objections:
Would not be 4 member II OPTIONAL
l46; Iediscount privilege If no value
81: rediscount privilege of little value
l43 object 10 limitation Of farm
mortgages to % per cent Of capital
50; exclusion of restrictions on real
estate or mortgage loans (other than
farm mortGages) 76; no dealing with |
federal reserve hank 619; fewer deal I
ngs with, federal reserye bank @O6;
Object TO political aspect Of federal
reserve board 20: diss1 tsfaClion with /;
present comptroller 1883; system of no
value to country banks 257: system
VI little value to country banks 227:
still necessary to maintain relations
with correspondents SOS: don't see
why state banks should ioin 376: oh
ieCt 10 no interest on deposits 903;
Dividend federal reserve hank stock
unsatisfactory 624; capitalization Of
feGcral reserve banks too large 2q3; |
SvstCm too expensive 32S: Proportion
required for deposit too large 21S;
state hanks receive benefits without
iorg IS.
" the 1oumcmhcrS replying. G3
object to the office " comTtrol'": and
li2 object 10 tho present incumbent
Of that office FIFTY complain Of the
political aspect Of tho reserve board 4
ana II of the political ASPECT Of the
system. That thocn is no ADVANTAGE
to he had i'm Joining tho system is the
verdict Of S07 state institutions. while
1872 others believe tho advantages cut
weighed hv tho disadvantages It is
reported hv SIS state banks that they
correspondents than through tho fed
A NHNV