New-York tribune., 1921-04-07

of Currency To
Be Abolished
Function of Examining Will
Be Taken Over by Federal
Reserve Banks Under the
Plan Drafted by Harding
by Financiers
Treasury Official to Serve
as Liaison Officer; Legis-
lation Ready for Action
By Carter Field

WASHINGTON, April 6.--The Office
of Comptroller of the Currency is about
to be abolished. President Harding
has committed himself to the plan OF
consolidating the bank examining func-
ton of that Office with the Federal Re
serve Board. and also of dissociating
the Federal Reserve Board from the
Treasury Department.
To accomplish this legislation must
be enacted by which the Secretary of
the Treasury, who is now ex officio q
member of the board, will be supplant-
ed on the board by an Assistant Secre-
tary Of the Treasury, whose chief func-
ton will be that of liaison officer be-
tween the Reserve Board and the Treas
ury. Also, it is planned to remove the
Reserve Board from the Treasury
Building and to add new member to
the board to take the place of the
Comptroller.
The bank examining functions will
be largely taken over, then, by the
twelve Federal Reserve banks, only
the complicated or involved questions
being referred to Washington. The ex-
penses of these examinations, now paid
by the various member banks, will be
borne by the Reserve banks, and paid
for out of their earnings under this
plan.
It was learned to-day that when
President Harding appointed D. R.
Crissinger, of his own town of Marion,
as Comptroller of the Currency, he
told Mr.. Crissinger that he favored the
plan of abolishing the office; that Nh
Crissinger took the place with this
understanding. 1t is understood that
Mr.. Crissinger does not wish to go
over to the Reserve Board as mem
Der, but is anxious to retire as soon
as the legislation can be put through
and the changes effected.
Change Generally Approved
Incidentally, not only Mr.. Crissinger
himself and President Harding, but the
members of the Reserve Board and
Secretary of the Treasury Mellon, The
Tribune correspondent is Informed, IA
vor the changes outlined here. Repre-
sentative Louis T. McFadden, chairman
of the House Banking and Currency
Committee, has been IN consultation
with the President, Mr.. Crissinger, Sec
retary Mellon, members of the Reserve
Board and bankers throughout the
country.
Promptly on the opening Of Congress
next Monday Mr.. McFadden will intro
duce a bill which will practically be the
same as the measure he urged in the
last Congress, though at that time with
the Administration strongly against
him. President Wilson stood by Comp
troller Williams through all the attacks
made on him, while Mr.. McFadden not
only led the fight against Mr.. Williams IN
the House but was largely instrumental
in the fight which prevented his con-
firmation by the Senate after the ex-
piration of Williams's first five-year
term. Had it not been for this opposi-
ton Williams, it is believed, would have
been confirmed for another five-year
term and the present plan to abollsh
the office would be made more difficult.
Under the new plan as approved ma
tional bank examiners will work under
and report to the twelve reserve banks,
and, when a bank feels that it has
grievance on any question it can
take the question to the Federal Re-
serve Board in Washington. At present
the bank examiners work under the
Comptroller of the Currency and re-
port to him. and when q bank has a
complaint to make it can appeal only
to the Comptroller, who can act much
to suit his own will.
The proposal is said to be popular
with the bankers who have studied it.
Incidentally plan is under consderS-
ton to have the whole question
threshed out at the American Bankers
Association annual convention.
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