The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1916-07-11
WHAT BANKS OF THE UNITED STATES THINK
Of THE FEDERAL RESERVE PLAN OF BANkNG


What fhe Ranks of the United States
Think OF the Federal Reserve Act
just issued BY the guaranty 0"'
Company Of New York.
II probably will not be very comfort
Ing to the Federal Reserve Board anu
the sponsors OF the Act to learn as
they will from 4 peruSal or the results
Of this QUESTIONABLE. that BANKS ulatu'
tanning a critical attitude toward tn@
law slightly outnumber those more
fayora bly, disposed, while those lhat
are -committal on the suoJect On
coed in number either or the otnei
two classes. Replies were receiVeut
from 5.344 banking institutions, ol
which 2.709 We're National or melnoeT
banks, and 2.635 State banks ana
trust companies. Banks from all over
the country responded. and 1t IS sale
to assume that summary Oh the ;e
plies indicates quite accurately the
general sentiment among all the banks
in the United States regarding lhls
new law. an,
While there are upwards OF $4,000
banks in the counry-and IN the
Guaranty Trust Company's canvass
replies were received from httle
over a third Of them-neyertheless II
is probable that this is the mos
thorough straw vote that ever has
been taken on a financial question.
From the very beginning mere
naturally has been great difference OF
oninion among the banks OF the
country concerning the Federal Re
serve system. 1t has been generally
known that this was the case and tlat
there was considerable opposition 70
some features Of the Act on the part
OF bankers, both within and without
the system, but it has remained 1or
this canvass to bring out the facts III
a clear and unnlistakable manner.
In view Of the inauguration on next
Saturday. July 18th, OF the federal
Reserve Banks new clearing plan lot
the collection or checks IN any part I'll
the country, it is particularly inter
esting to notice the attitude OF mem
Der banks on this feature OF the law.
Two hundred and sMty-two member
banks that referred TO this suoJSci
said that the Reserve system should
leave collections and clearinsS unuer
control of member banks as has been
done I'D to this time. Almost an equal
number-256 TO be eXact-were 1aFor-
able TO the more comprehensive sys-
tenn of collections and clearings.
Space does not permit the reproduc-
ton of all the facts brought y lSht
concerning the banks attitude toward
the Federal Reserve System, out some
of IL. most interesting crltlclsHlS,
both constructive and Destructive are
as follows: -, non
Of fhe 1,760 favorable replies, loo
mr. zoe; are from member banks. and
521 or 3Ucc from non-member banks
OF the 1.II3 unfavorable repleS.
| OBS or G1eo are from member BANKS
and 6S5 or $500 from non-memoeF
banks.
Of the 1911 replies that are non
committal. 392 or 2ltc are IRON mem
her banks. while 1.419 or 1870 are
from non-member institutions:
SUGGESTIONS OFFERED By Ma
TI0Nh. BANKS. 90.
General Approval 49,. ....... %" p%e
Favor one central bank. .... i. ;;.;. $50
In favor of atolishins Eomptrollers ono
office o.
Suggest guarantee Of d"poSits i ...; OF
p rmit part Of reserve 10 DC kept rs
with correspondents ......,.-... %
Ncrnbership Of STAT" banks necos-
s;,f.v for success OF system ..;... ~
Permit F. Z. notes TO be counted as 90
nE ;Hins FHSS!se of;F'EREfn BY NATIoN-
Al. BANKS.
Would not be 4 member II opuonai 1Sn
i;e discount privilege OF no value. o., 30
E"-discount privilege or u,tie vaius -4'
cages TO $50 of capital. ;.... oS
r. rlusion of restrictions on real es-
tate or mortgage loans tother than -.
- 'arn, NOR ,;.i,S - p Rank . coo
~ A., JnaI;Snss mith +. r, Bank. eos
Object TO political aspect of /. H. IN
Board ......'' ~
Dissatisfaction with present Comp
s>s,nm of no value to country banks PSI
system of little value TO country oo-
banks - 800
SUI hec"S rrosyno ~ i! ..... SOS
Don't seq why State Banks should ,-e
Object 70 no interest on deposits. Jus
Dividend f. r. bank stock unsa'ls 60.
Ca 'atsIrn Of F. +. Banks too -,
SN stem too expensive ....:':.. o."
Proportion required for deposit too ~,
large LII
State hanks receive benefits With r=
(, % 9%;t;E3 %tFiHS oiF;F:ERED BIZ NoN-
MEMBER BANKS. ,o
General Approval .'....;.; s1'
Permit part of reserve 10 nc carried An
with correspondent ~
Federal reserve bank should not
cnnpcte with members 81
Rulings re State banks should be ..
embodied in the law :........... 3 So
, I'll
Reserve system should guarantee
state members all rights now pos
scssed under STATE LAYS 3 nv SoS.
MEMBER BANKS.
II discount privileges or ittle
(aD Kind of paper ...... 20 2oo
th) Maturity of paper ........ lpS
Object to Red Tap":
(aD In connection With re-ois- az
(h1 OF system in general ...... 15S
'n5srt 10 a. :.5 Of capital ca6
Object TO office of Comptroller. Is
Object to incumbent Of Comptroll-
So office l43
Object to power given to NATIONAL %
banks 10 accept trusts .......... ~
Object TO no interest on reserve 90,
Object IL exclusion OF all restric-
tions on real estate mortgage
loans (other than farm mort
Object 10 restrictions on loans in
rsn.ral ...... 140
ohject to duplication of expense and
inconvenience:
ca Because OF examination. -. 243
th) Because of reports. ........ 159
Object to supervision by both Nation
al and State authorities ......... 1913
on on Federal, Reserve stock .......'. 23e
! Object to capitalization OF T.. R.
banks CASUALLY as q cause OF abb
scncc OF diridends) ............ 1Q3
| Object to clearing and collection
feature SIS
! Sec no advantage In joining SDI
Advantages outWeighed by dlSad-
[ NSnIASSS LOO
! Bank gets benefit of system through
| its correspondents. who are MEM
HAY Ann GRAIN