New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-27
Governor of Reserve Board
Says Liberty Loan Will
Be Three Billions
Big Bank Planned
For Foreign Trade
$5O,OOO,OO0 Institution Be-
ing Organized for After
War Business
fstar CorepNdencel

ATLANTIC CITY, Sept. 26.-Person-
alities characterized the section meet
ings of the American Bankers Associa-
ton here to-day, eliminating IN a
change in the report OF the legislative
committee. in which had been incor-
porated criticisms of the Supreme
Court and Of Governor W. 7. Il. HARD
ing Of the Federal Reserve Bank.
But the sessions Of the bankers were
not all given over to criticism. Con
structive suggestions were made. Incl
dentally, it was announced that Soo'-
600 900 banking corporation is in the
process of organization for the purpose
Of establishing credits in foreign ma
tons and making it possible for Amerl-
can business men to compete, on az
least an even basis, with those OF the
Central Powers after the war. This
fact was revealed by John Clausen, OF
San Francisco, in the course OF an ad-
Dress DelOre tHe HaIIo""i p"'n -
ton.
Supreme Court Criticised
Discussion OF the Federal Reserve
system was taken up by members oil
the trust company section when they
received the report of the legislative
committee. under direction Of which a
test Of the reserve system was carried
to the United States Supreme Court
After discussing the decision of the
highest tribunal supporting the act es-
tablishing the system, the committee
thus expressed its opinion of the court
ruling:
"The case was argued before the Su-
preme Court by Attorneys Johnson and
Campbell. The committee was advised
by counsel that they were entirely sat
;sfed with the presentation of their
case and if decision of the court had
been arrived at on legal grounds only
there would have been no doubt of its
favorableness."
The reading Of this paragraph was
greeted by an uproar of applause and
criticism II finally was expurgated
however, after several bankers had said
that it's adoption would re playing into
the hands of Socialists and others who
were in the habit of charging that the
Supreme Court reached its decisions
because of other considerations than
the law.
Governor Harding's address, which
was delivered before the state bank sec
ton, consisted chiefly OF an explanation
of the workings of the Federal Reserve
system. lie concluded by making an
announcement as 20 the amount Of the
next Liberty Loan issue, saying that ii
would be 80 per cent greater than the
first loan, or $4,000 OOO,OOO.
Banker Assails Harding
George W Rogers, vIce-president of
the Bank of Commerce, of Little Rock,
Ark, sprang TO his feet the instant
Governor Harding concluded, saying
that he had been unfair and had IN
tentionally lodged the very issue which
the state bankers are fighting over.
Just give me three minutes anu II
saw something about what you want,
answered Governor Harding. I'll
JUST
mo you WON'T interrupted Mr..
Rogers. "Ill say it myself"
Mr. Rogers was vigorously applauded
when he declared that the state bank
ers are patriotic to the core, but that
he did not think it equitable for the
Federal Reserve Board to force mem
bership upon such bankers by appeal
ing to their patriotism. ;,
That's what we're disturbed over,
he said. Governor Harding, in his ad-
dress, seemed 70 express more tond-
ness for the eigh.y-four state banks
that have strayed into the system than
the nine thousand and more that have
NO greater calamity could befall
the nation than to have its entire
credit in the hands of few men. The
majority Of the bankers in this coun-
trv are not afraid of any man IN