The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-09-26
RESERVE BOARD
PROTECTION
SOUGHT
Bankers in Convention Move to
Protect Institution From
knife of Politicians"
By w. S. COUSINS,
Copyright, 1923. by Cosmopolitan
News SerVice.)


ATLANTIC CITY. N. j., Sept. %.
Measures to prevent the de-
terioration of the entire Federal
reserve board" and to provide pro-
lection for members against deliv-
erance ITO the knife Of. the poll
ticians" were urged yesterday in a
report approved by the executive
council on recommenA2-..::S17 of the
economic policy commission Of the
American Bankers Association.
The measures advocated in the
unanimously adopted report are:
l. Amendment of the Federal re-
serve act forbidding the establish
ment by any Federal reserve bank
of any branches in foreign coun.
tries under the guise OF agencies.
2. Appointment Of two members
of the Federal reserve board by
member banks Of the Federal re-
serve system.
8. Provision that members OF the
board, at the expiration Of their
terms may be reappointed by the
President without Senatorial con.
firmation.
4. Provision that members of
board shall designate governors and
vice governors instead OF having
the President charged with that
duty.
S. Amendment of the Federal re-
serve act to make the governor of
the Federal reserve board the
chairman of the board, the under
secretary of the Treasury becoming
an ex-officio member, instead of the
Secretary of the Treasury.
6. Amendment to the Federal re-
serve act providing that the major
functions OF the Comptroller Of
Currency shall be transferred to
the Federal Reserve Board, with a
view to bringing about a siTnplifica-
ton and unifom system of exani-
nations and rulings.
Starting OF Agencies.
"The commission looks with dis
favor upon the authorization re-
Gently given by the Federal Reserve
Board to two Federal reserve banks
to establish, under the guise Of
agencies, organizations Of their own
in Cuba, says the report presented
by Melvin A. Traylor. president Of
the First Trust and Savings Bank
of Chicago, and chairman of the
commission. ''It believes that the
precedent thus established is fraught
with the most serious dangers, and
it suggests that the Federal Reserve
Board reconsider it's policy adopted
in this regard, or. falling that, that
an an amendment to the Federal re-
serve act be sought forbidding the
establishment by any Federal re-
serve bank of branches in foreign
countries under the guise OF agsl-
cies.
'Your commission fears there is
no telling whittier ultimately the
Federal reserve system may orlTt,
and your commission is alarmed,
though not surprised, to learn that
proposals already are naterializing
designed TO secure from the Federal
Reserve Board permission to operate
similar branches in other countries.
Next Meet in Chicago.
Chicago probably will be selected
as the 1924 convention city of the
association.
Among those most prominently
mentioned for the office Of second
vice president, which carries with it
rotation to the presidency Of the
association, are Frank w. Blair,
president of the Union Trust Com
pany of Detroit, and Melvin A.
Traylor, president OF the First
Trust and Savings Bank of Chicago.
Francis H. Sisson of the Guaranty
Trust Company, New York. with
drew his name as a possible candi-
date in favor of Mr.. Blair.
Walter w. Head, president of
the Omaha National Bank, will be
elected president of the association
this year, and William E. Knox.
president of the Bowery Savings
Bank Of New York now first vice
president. will head the bankers
association next wear