Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-06-25

Virginia Bankers Association Would
Raise Maximum Prescribed
by Law.
MEETING ADOPTS RESOLUTION
Check-Collecting Plan Defended in
Address by Charles 5. Hamlin.
Officers Are Elected and Reports
OF Various Committees Made.
tspecia! to The Tlmes-Dispatcn.l

OLD POINT. VA. June e4.-D!rected
conditions brought about, in part. by
the Treasury Departments Campaign
against "usucioUs" interest charges, the
Virginia Bankers Association o-dny
ratified resolution looking TO the
enactment OF 4 State law permitting
n contract !atc not exceeding 5 per
cent, instead OF the per cent rate
which now IS fixed as the legal maxi
mum.
The Recommendation was reported by
the resolutions committee, which dis
cussed the matter a, an extended scs-
sion. Vas, sums o. money, bankers
told this committee. are leaving Vir-
cin!a for Georgia. Florida nd other
states where higher rates of interest
prevail. and only the raising o: the
contract rate in this State. they said,
viii correct this condition.
The resolution was adopted after
1t directs the prcstden, OF the associa-
ton to appo!n, a committee of ten
members, two from each OF the five
bank groups one to he an officer o!
national and the other an officer of
state bank. The committee is directed
20 take steps 20 secure the enactment
Of law leEalizng n contract rate not
IN excess OF per cent. hut leaving the
rate s per cent where no other rate
is specified.
OPPOSE COLLECTION OF
COUNTRY ITEMS AT PAR
Shortly before final adjournment
Upon the motion OF ]. +. Rison. of Dam
tion condemning thar portion OF the
new check clearing system proposed by
the Federal Reserve Board affecting
country items. The resolution is in
this language.
Resolved. That il is the sense OF this
association that the provisions OF the
Federal reserve law which contemplate
the ultimate collection TT par of coun-
try items, form an unwisc and unneces-
sary feature Of that law, and that the
Senators and Representatives from this
State be requested 10 use their efforts
to secure an amendment Of the law In
this particular. eliminating this feature
thcrcfron. and that in the meantime
the Federal Reserve Board be requested
not 10 take action looking 10 tho en-
forcement of said provisions"
Having deal, this blow At the Federal
collection plan, the bankers listened
with interest TO an able defense OF tho
Federal reserve banking system in gen
eral and of the proposed new check
collecting plan in particular by Charles
:. Hamlin. of Washington. governor Of
the Federal Reserve Board.
Admitting that n few country banks
will suffer loss in income from ex-
change by reason Of the par collection
within n short time will he compensate
for the loss by increased deposits and
the larger volume of business that will
fall to them through the stimulation of
industry and agriculture that will fol-
low more enlightened banking practice
To oppose national system Of check
clearing at par, said Governor Hamlln,
is no more justifable than TO oppose
the construction Of n great free high
way because n few owners Of toll roads
benefit by their continuance. Akin to
such opposition. he said. was the op-
position OF the city Of Erie. Pa, many
years ago to the transformation OF tho
narrow gauge Eastern railroad into a
standard gauge road. thus making pos
sible physical connection with tho
standard gauge roads leading to the
West, whose terminals were located In
| another section of the city. The join
! ing OF the two systems on "A single
standard gauge, the city OF Erie feared
J CONTINUED on Fourteenth Page.)