The Washington times., 1916-02-08
WANTED CENTRAL BANK OF ISSUE.

Senator owen of Oklahoma, chairman
OF the Senate Banking Committee, was
firm believer IN the idea of a central
| bank of issue ard long before the re-
| serve system was devised had framed
| and introduced bill to establish such
an institution. People who are still
voting for Andrew Jackson and who
| for two generations have been per-
| sistently hostile to the very Idea OF q
| central bank in This country, needed
| nothing moro than to know that ccn-
trail bank was proposed. to convince
them that 1t was vicious legislation. IN
addition to this powerful element
and It is particularly strong among
| old-line Democrats-there were many
practical men who would have been
| glad to sec a central bank created. but
| who realized that to undertake so
| revolutionary O measure at single
step would involve very great difhcul-
| ties in readjustment Of financial and
banking conditions. 1t was probably
| due to the astuteness OF the late Sem
| ator Aldrich that the very name of
bank. was omitted. while it was n po-
| litical concession to sectional sentiment
| that determined upon the creation OF
| the group OF regional institutions. all
! OF them under the general domination
Of the Central Reserve Board.
The uncompromislng advocates of a
| central bank fatty called by Its right
/ name would have been glad to see the
| new system include not only the ma
ticnal banks, but also state institutions
] and trust companies. This likeWlse was
| found to be politically impossible and
| in the 1nal organization of the scheH'e
| only the national banks were required
| To become members. Provision was IN
| corporated. however, Under Mhlch tne
| II, ~ fN,uf
! come members of the Federal system II
| they desired.
| After more than a year of experience
with the new system the men VINO TOOK
| the lead in its creation are beginning TO
make inventory of its accomplishments
and Of the attitude OF the banking COM
munity toward It, One OF these, a man
who played one OF the largest parts IN
framing the legislation. is now announc-
ling that unless there Is more disposi.
ton among the excepted classes or
bankers to unite with the reserve sys-
| tenn, amendment of the act will shortly
be proposed to bring about more rapid
progress in this direction.
, Not a little thought has been given to
| methods by which further unihcatlon OF
the banking fabric could be accom-
ton are involved, but the advocates or
a further unificatiOn believe II Is pos
sible to accomplish their purpose with
out a constitutional amendment. The
ernmental functions more and more in
the Federal authority is a powerful in
fiuence IN favor of further progress
the direction Of great Feder1 bank
There il some evidence Of difference
of opinion about the attitude of the
State banks and trust companies thus
far toward the reserve system. In gen.
eral. the administrators Of the reserve
system have expressed themselves as
reasonably well satisfied with their
progress toward getting I'm the excepted
classes of institutions. Legislators are
not so uniformly satisfied in this direc-
tion. Some recent expressions by men
who will have good deal to do with
formulating and urging further legisla-
ton, indicate n very definite impression
that in some parts of the country the
State banks and trust companies have
been on the whole distinctly indisposed
to cooperate with, the Federal scheme
| This complaint is especially made by
Southern and Western members OF
Congress. against New England and the
Middle East, where State banking In
stitutions are particularly powerful.
In parts of the country where bank
ing units are small there has been
much more tendency to unite with the
Federal system than in the East and
| New England, where banking units arc
| much larger. recent letter from an
| official OF one OF the Southern regional
banks called attention to what he con.
| sidered a gratifying situation in South
Carolina. where he said that so many
State banks were Joining the Federal
| system without giving up their State
charters or else converting themselves
into national banks, that Il would be
difficult to handle them any faster. But
! south Carolina Is not a financial
} stronghold. In some other States the
State banking interests have opposed
| legislation designed to permit national
banks to act as trustees administra-
tors, etc. and this opposition has
reused some antagonism among legis-
lators in Washington. There is begin