New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-05-11
Controller of Currency
Not Invited to Fall
Convention.
EXCHANGE ABOLITION
PROVOKES PROTEST
Country Banks Fear Ruin IL
They Must Honor Others
Checks at Par.

fFrom star Correspondent; o. The rrbun.I
Briarelif Manor, n. Y, May l0.-John
SHELTON Williams, Controller OF the
Currency, will not be INVITED 70 ad-
dress the American Bankers Assoeia-
ton at their annual convention next
fall in Kansas City. Despite the rather
liberal criticism with which President
Wilson's Cabinet has been arraigned
by the bankers, there was some talk,
when the bankers first arrived last
Monday, OF inviting the Controller 20
address the Kansas City convention.
The idea was definitely abandoned a.
the last meeting OF the spring session
Of the executive council held this noon.
1--WE will make il strictly a bankers
affair" said one Of the officials OF the
council, after the meeting. There
have been occasions when the Control
Ter was invited 10 address the assoeia-
tion, but this will not be one OF them.
II is possible that We will listen TO a
prominent South American banker, who
speaks English, and who will tell Us
of the South American possibilities"
Decide to Protest
Definite action was taken By the
council upon the clearing OF Federal
Reserve bank checks at par; 6 matter
that has held the centre of interest
throughout the conference, that caused
a number Of midnight meetings, and
was only decided after q lengthy, spir-
tied debate behind closed doors. By
a final vote OF as TO 10 the council
decided to protest TO the Federal Re-
serve Board against the new order
due TO become effective June 10
which would abolish exchange and
make the parent Federal Reserve banks
the clearing houses for checks Of all
member banks. George K. Webb, presi-
dent OF the First National Bank OF
San Angelo, Tex, at the head Of the
Texas delegation, led the fight against
the abolition OF exchange He had
strong support from the country bank
ers from western New York 10 Csllfor-
| MIA.
Country bankers said that so serious
a curtailment of revenue would result
| from this that MANY OF them would
/ have TO go into liquidation, or surren-
/ der their national bank charters md
resolve themselves into state banks. 10
was said that small bank. OF 100000
capital, with as much in reserve, oper-
atng in a small town, realized as high
as $4,000 a year from collections IL
! compelled to honor checks at par value
this profit would be erased.
Committee To BE Sent.
The resolution finally adopted pro-
vided that a committee of five be dis
patched with a letter to the Federal
Reserve Board, asking for postpone
mert OF the June is time limit. Mem
bers of that committee are W. II.
Bucholz, ice-president Of the Omaha
National Bank; J. Elwood Cox, presi-
dent Of the Commercial National Bank,
High Point. \. C., and also chairman
of the executive committee Of the ma
tional bank section OF the association;
John McHugh, vlce-president of the
Mechanics and Metals National Bank,
New York City, and chairman Of the
executive committee Of the clearing
house section; George F.. Webb and ".
Breach. vice president Of the First Ma
tional Bank OF Meridian, Miss.
The proposal to extend the member
ship of the association 10 Cuban, Phil
ippine and South American banks came
up this morning. IL was referred 10
the administrative committee. 20 bo
reported back at the fall convention.
The session adjourned this afternoon.