Evening star., 1920-01-31
DENIES BANKS ARE COERCED
INTO u. S. RESERVE SYSTEM
Board Replies to Resolution Inquiiring
Into Method of Presenting Checks
of Non-Members for Collection.

tee. For instance. il the bill were
enacted into law it might result in
driving number of banks out OF the
reserve system. particularly in New
YORK, where the business of call
money is very large. 1t certainly
would. IT is believed. prevent banks
joining it.
1t is understood that Gov. Harding
OF the Federal Reserve Board concurs
in this view of the proposed legisla-
ton. The fear is expressed that the
plan mi ght fail to accomplish its pur-
pose while merely driving banks out
or the reserve system and transfer
a pig business from the reserve banks
to the state banks.
With Senator Mclean and Gov.
Harding both looking upon the plan
with distruSt as to what II would ac-
tually accomplish. there seems lit
tie chance of the bill being enacted
into law.
Secretary Glass of the Treasury has
written TO Chairman Mclean OF the
Senate banking and currency commit
tee opposing the bill introduced by
cent pieces as memorial to Theodore
Roosevelt. In his letter Secretary
Glass says that the issue of two-cent
coins would be 'inexpedient" and in
advisable" and also that there is mo
demand" for such a coin.
PRODUCTION of a two-cent piece might
neceSsi-ate changes in many cash
registers. adding machines and other
mechanical devices now widely used.
Notwithstanding the views of the
Secretary. Senator Mclean said that
the bill would be considered by the
committee. and. if it approved. hear
ings would be held TO determine IL
there is a demand for the two-cent
coin. He said that if the two-cent
|
fence to the public. il might wen
Offset any trouble due to the neces-
sity of making changes in cash reg
listers. etc.
A bill making a number of amend
ments in the farm loan act was passed
by the Senate this week Many of the
amendments are merely administrs-
tive. One provides for the appoint
ment of an acting registrar In eaeh
land bank district to act IN the ao-
sence or disability of the regislrar'
Another makes the minimum bond II
sued by a land bank $40 instead OF
s25-this for bookkeeping accommo-
dation only
The House banking and currency
committee has reported faVoraoiy
bill introduced by RepresentatiNe
Rodenberg of Illinois. amending sec
ton 5146 of the Revised Statutes IN
relation to the qualifications OF od-
rectors of national banks. The re-
port on the bill says:
This section of the national bank
ing act as il stands requires that at
least three-fourths of the directors
of a national bank must have lived
for a least one year within the state.
territory or district in which TIE
bank is located and must continue
in residence therein during their
continuance in Office. A NUMBER OF
cities, however. are located on or
near state lines, and il sometimes
happens that manufacturing or
business center may be in one state
and the residence center belonging
to the same city in .another-as at
East ST. Louis and St Louis.
There seems no good reason why
residence within fifty miles of the
bank in these days of good roads and
motor cars should not be allowed
The bank must in any event choose
directors from among the business
men of the town where located in
order to obtain a quorum at it's meet
ings, and the distance they travel to
and from. business is not material
nor is the fact whether they live on one
side or another of a state line"