Evening star., 1920-10-21

An appeal to Congress to settle ''once
for all" whether the bankers have q
right to charge exchange. or whether
the par clearance of checks rs or
dered by the federal reserve board
shall continue. today was urged upon
the American Bankers Association
convention, meeting in Keith's Thea
ter, by M. J. Bowling, chairman of the
special committee of i've appointed
to consider this matter.
The question Of par clearance of
checks has aroused intense indigna-
tion among many Of the country and
state banks. which have been in the
habit Of charging exchange.
Mr.. Dowling. reporting for tbs com
mittee of I've, recommended that the
| committee be continued. and that the
| incoming president Of the association
mittee. His Recommendation was
adopted without debate.
Mr. bowling said that his commit
| tee had sought to have tho matter
tried out in the courts, but had been
unsuccessful in finding q plaantf6. for
the bankers feared to .face the Fed
eral Reserve Board" But recently in
Georgia q number Of country bankers
had Joined together and taken their
case into the courts and 1t would
eventually reach the Supreme Court
of the United States.
Bankers Discuss Tax On Gold.
The convention voted today to re-
fer the report OF its committee on the
McFadden BILL proposing a tax on
gold used in the arts and bonus to
producers Of gold, to the economic pol
| icy commission for further consid-
Grafton" The committee had report
ed adversely upon the bill, and the
Reynolds. Representative McFadden
of Pennsylvania was given an oppor-
tunity to defend the measure before
the convention, to which he is dele
gate, and a motion by John s. Drum
proposing to refer the whole matter
! to the economic policy commission
was then adopted. after a substitute
providing for receiving and fling the
report of the committee and Mr.. Nc
Fadden's statement had been voted
| down.
the association to study the measure
submitted a report vigorously oppos-
| ing the bill as an attack on "a basic
element of the gold standard while
Representative McFadden, author OF
| the bill, defended the proposed law,
declaring that the addition Of new
gold to the nations reserve would
assist defation and stimulate
healthy return to normal.
Arxuments Of the Committee.
The special committee in its report
contended that gold miners were only
one Of the many Industrial sunerers
from the war and might wen look
forward to a return OF an industrial
situation which would more than COM
pensate for their present stringency.
Mr. McFadden declared that the
average cost of raw materials In ali
Industries during the war period had
of gold in the industries continued to
obtain their raw material at the pre-
war price fixed by the government
This. the speaker added, made gold
unique in that 1t was the only mate
rial which was prevented by the gov
ernment from being Influenced by the
natural law of supply and demand.
MT. McFadden denied the commit
tees contention that the proposed bill
was blow at the gold standard.
he accepted abroad as evidence of the
determination of the United States to
strengthen its gold reserve.
Omcers for Coming Year.
The convention elected the follow
ing officers for the ensuing year:
For president, John 8. Drum. presi
dent Of the Mercantile Trust Com
nQnv. san CThuClSSOs ViS0 pE0SiQcnt,
THOMAS B. McAdams, vice president
of the Merchants National Bank.
Richmond, Va, and second vice presi-
dent. John II. Puelicher, vice presi-
dent of the Marshall & Ilsley Bank.
Milwaukee.
The resolutions committee. 1t was
said today, still has under considera-
tion the charges made by John Skel-
ton williams. controller OF the cur
rency, regarding high rates Of In
terest charged in New York. 1t was
considered likely that the committee
would bring in q resolution dealing
with the charges. but that 1t would
not make a personal attack upon the
controller. II the resolution is
brought In. II will be laid before the
convention tomorrow.
De Frees Speaks on Business.
American business must purge IT.
self Of its own 'misdemeanors" before
it can hope to exert the fullest in
iuence in the affairs Of the nation,
Joseph H. De Frees, president Of the
Chamber Of Commerce Of the United
states. told the bankers In an ad-
dress today.
One of the most fruitful sources
of the unrest in this country at the
present time" said Mr.. De Frees, rs
the belief on the part of great
ip.-