The Birmingham age-herald., 1920-02-11
STEAGALL TAKES UP
 STATE BANKS FIGHT


 For all the ills with which bankers of Alabama and Georgia are afflicted-and all the ills at present take the form of that section of the act creating the fed eral reserve system, requiring the par clearance of checks-Carter Glass is re- sPcnsible, according to Representative steagan of Alabama This member, as previously noted, has introduced an amendment to the federal reserve act which would undo ''the injury" and per init banks to clear checks at 10 cents tbe Sloo or fraction thereof
 According to Mir SteagalI MT Class then a member of the House and author or the federal reserve act was able be- l cause of the confidence which other men1- bers placed in him, to make the House drink vinegar and like it. Underneath the Steagall statement is implication that MT. Glass deceived the House. but in asmuch as such a charge is not coueAed n actual language, it is possible that MT Gtass who was after his House service Secretary of the Treasury and is now a senator from Virginia will not make reply, this despite his well-known inctn- ation to take up every gauntlet tossed in his general direction
 MT Steagan tells the "sadp story in this wise:
 Tn 1917, when the bill. or certain pro- posed amendments, was in the House. Representative McFadden of Pennsvl- vania offered an amendment that notbinp contained therein could be construed as preventing bankers, members or non- members or the system, collecting a reas- ] onable charge for the clearance of checks rhe McFadden amendment was ruled out l on point of order When the measure was before the Senate a similar amend Tnent was offered by former Senator Hardwick of Georgia and adopted as q rider" When the bill was in conference the House instructed it's conferees by record vote to agree to the substance Of l the Hardwick amendment The con ferees changed the Hardwick amendment by providing that the reasonableness of charges to be made for the collection of l checks should be left to the determina- tion of the federal reserve board, and A clause vas added to the effect that no charge should be made against federal reserve banks
 The matter was fought out in the House, and those of us who opposed the taking away from banks of the right to l make reasonable charges opposed the changes wrought in the Hardwick amend | ment by the conferees. The chairman of the conference committee Mir. Glass as- sured the House that the conferees had oheyed the instructions of the House, and that the change in the Hardwick amendment did not effect it's substance. I and that no authority whatever was con l ferred on the federal reserve system to deny to state banks the right to make reasonable charges for collections Rhe l chairman of the conference committee or account of his great prestige as chair man of the committee on banking and currency. persuaded the House to ac- cept his view and the conference report was adopted.
 'The action of the federal reserve board in attempting to enforce it's rule is clear ly contrary to the purpose of the House and Senate as shown by the formal ae- tion of the House and Senate Its course is unjust unreasonable and indefensibie The onlv beneficiaries are the big bank CTS, wholesalers and jobbers who wouS have the small country banks remit col lections at par, which they cannot do without mourning considerable cost and expense. and they are under no obliga- ton. legal or moral to undertake to do i it /"
 MT. steagaIl is very hopeful that His amendment, preventing the federal re- serve system to force par collections, Nif be eracted. And in the meantime he is receiving the thanks and commentators i ot the bankers of Alabama and Georgia. where the bulk of the opposition to the federal reserve system plans and pur- poses is confined.