The Washington times., 1916-02-08

Senator owen of oklahoma. chairman
of the Senate Banking Committee. was
a frm believer n the idea of central
bank Of issue, ard long before the re-
serve system was devised had frame1
and introduced a bill to establish such
an institution. People who are Stlil
voting for Andrew Jackson and VINO
for two generations have been per-
sistently hostile to the very idea or a
central bank in this country. needed
nothing moro than to knew that con-
tral bank was proposed. to convince
them that it was vicious legislation. IN
addition to this powerful element
and it Is particularly strong among
old-line Democrats-therc were many
practical men who would nave beeh
glad to sec a central bank created. p"t
who realized that to undertake. so
revolutionary measure at 4 sinSle
step would involve very great dithcui-
ties in readjustment Of financial ara
banking conditions. 1t was probably
due to the astutencss OF the late SEN
ator Aldrich that the very name ot
bank. was omitted. while 1t was Il po-
litical concession to sectional sentiment
that determined unon, me ,sI,t;ons crtnmoh om 81
the group OF regional institutions, all
Of them under the general domlnatlrn
of the Central Reserve Board.
The uncompromislng advocates OF a
central bank fatty called by Its fghC
/ name would have been glad to see the
ncS system includ" not only the ma
ticnal banks. but also state institu'ions >
and trust companies This likeWlse was
/ found to be politically impossiblc. ana
! in the fnal organization of the scheT'r
only the national hanks We're rehullto
! to become members. PROVISION was n
! corporated. however. under when the
tt.tf ~
! come n"mhers Of the Federal system II
| they desired.
| After more than year of experience
| with the new system the men VINO TOOK
the lead in its creation are beginning 10
! mako inventory of its accomplishments
and Of the attitude of the banking COM
| munity toward 1t. One or these man
who nlayed one Of the largest parts IN
| framing the legislation, is now annouhc-
ing that unless there Is more disposi.,
/ ton among the excepted classes or
bankers to unite with the reserve sEs-
| tenn, amendment of the act will shorty
be proposed to bring about more rapld
progress in this direction.
! Not a little thought has been given to
methods by which further un1hcatlon OF
the banking fabric could be accom-
ton are involved but the advocates OF
a further unificatiOn believe 1T is pos
slble to accomplish their purpose Win
out a constitutional amendment. The
crnmental functions more and more in
the Federal authority Is powerful IN
| fiuenca in favor of iurthcr progress
tho direction of a great F"dcrN bank.
| There IL some evidence Of difference
of opinion about the attitude Of the
State banks and trust companies th"F
far toward the reserve system. In gen
cral, the administrators of tn" reserve
system have expressed themselves q!
reasonably well satisfied with theil
progress toward getting In the excepted
classes of institutions. Legislators are
not so uniformly satisfied in this diroc
ton. Some recent expressions by mer
who will have a good deal to do witt
formulating and urging further legisla
ton. indicate II very definite impression
that in some partT of the country thu
State banks and trust companies have
been on the whole distinctly indispose'
to cooperate with the Federal scheme
:; This complaint is especially made b,
Southern and Western members o
Congress- against New England and tn
Middle East. where state banking in
Stitutions are particularly powerful.
In parts OF the country where bank
ing units are small there has bCci
much more tendency to unite with th
Federal system than in the East ant
New England, where banking units ar
much larger. recent letter from al
official OF one of the Southern regiOna
banks called attention to what he con
Sidered a gratifying situation in SOutl
Carolina. where ne said that so man,
State banks were Joining the Fedora
system without giving up their Stat
charters or else converting themselVe
into national banks, that It would b
difficult to handle them any faster Bu
J south Carolina is not a IinanCia
! stronghold. In som" other States tn
State banking interests have opposec
LEGISLATION designed to permit nationa
banks to act az trustees administra
tors, etc. and this opposition ha
! n IN 10 ir
lators in Washington. There is begin