The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-11-02
HIGHPAY Is UPHELD
BY RESERVE BOARD
W. P. G. Harding Tells Senate
Men Could Earn More in
Private Institutions.
Special Despatch TO THE NEW YORK HERALD.
New York Herald Bureau.
Washington ID. g. Nav. l.

Special Despatch TO THE NEW YORK HERALD
New York Herald Bureau.
Washington ID. c., Nov. !.
New York bankers serving the Gov
eminent as officers Of the Federal Re-
serve Bank in New York receive salaries
far below their earning capacity In pri-
vate banking institutions, the Federal
Reserve Board reported to-day to the
Senate In reply to the Overman resolu-
ton calling for details on salaries of
reserve bank officials.
Governor Harding, of the board. de-
Tended the salary policy of the board
as In the interest of the Government and
the public He said it would prove to
be q poor business policy to adopt a
lower salary scale for high Federal
Reserve Bank officials, as 1t would drive
from the public service financiers who
are regarded as indispensable to success
full operation of the reserve system
The Overman resolution, In reference
to charges on the Senate floor that FED
eral Reserve Bank officials who formerly
earned in private employment only be-
tween $1,000 and $4,000 a year are now
being paid from $4,000 to $50, 300.
brought this explanation from Governor
Harding:
Salaries of presidents of the larger
banks of New York city are in several
cases from 70 TO 100 per cent. in excess
Of the saltry paid to Governor Strong of
the Federal Reserve Bank at New York
(S50,000) in the case of three of these
banks there is a yice-president whose
salary exceeds that of the governor of
the Federal Reserve Bank of New York
1T is proper to state that while the
senior officers of the Federal Reserve
Bank have never received any extra
compensation or bonus, substantial
bonuses have been paid to the higher
officers by some OF the national banks
in various parts OF the country.
For example, the examination report
for 1920 of bank "A of New York city
shows that the chairman of the board
received a bonus of S35,000, the presi-
dent 100000. a vice-presdent $4,000
and other officers smaller bonuses. while
all the senior officers of bank r. re-
ceived bonuses equal to rs per cent of
their annual salaries.
THE salaries paid to Independents
of the larger national banks and trust
companies of New York city are much
in excess OF those paid to the deputy
governors and comptrollers Of the Fed
eral Reserve Bank of New York. the
highest salary paid to a deputy governor
at New York being 100000. while the
salaries of vice-presidents of six New
York city banks listed range from
100000 to SIS, 900 a year. II the aver
age annual salaries paid are considered
it will be found that the Federal Reserve
Bank Of New York. with forty officers
and with a total official payroll as of
October l. 1921 of $500 90 year paid
its officers an average annual salary
of S12,745. The average annual salary
paid by six national banks listed, some
with larger and some with q smaller
number Of officers than the Federal Re-
serve Bank. ranged from s11.466 to
s2S.792 the average annual salary paid
by bank E' being considerably more
than twice that paid by the Federal
Reserve Bank of New York"
The report of the board set forth fur
Their that of a total OF S64.562,S70 fran
chise taxes paid to the Government by
the reserve banks Of the country. the
New York bank paid s42.671,7SS in 1920.