New-York tribune. [volume], October 03, 1922, Page 3, Image 3

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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Fight to Halt !
BranchBanking
Gains Impetus
Chicago Organization Claims
Enough Votes to Cheek
Concentration of Power
in Hands of a Few
Big Split Is Threatened
neighborhood Institutions
Demand Share of
?Credits and influence
OoBOsltion to branch banking in the
v$e? States either on the scale per?
iled in England and Canada or more
Salted in proportions and purpose,
?ede further headway as the conven
TL 0{ thP American Bankers' Asso
iatio:* opened at the Hotel Commodore
?terdav The gains were emphasized
?* the '?ck of any check to the move
?Lt and the temporary absence of
?niter-agitation. This is expected to
?Ve its appearance at the meeting of
SaSftienal Bank Division and is not
Zrtf? upon to show its full force un
t ? the question is raised on the floor
t: the genera! session of the conven?
tion to-morrow. _
The most important victory for the
?.?nonerts of branch banking was won
-? meeting of the State Bank Di
" ? n at which a rer-olution framed
h'v'the group led by the Cook County
Hankers' Association was unanimously
trfnnted without discussion. This res
?ffi?. identical with that which will
b?. pre?eited for vote by the associa
tion tt Isrg*. read as follows:
?Be it resolved that the state bank
division of the American Bankers' As
?ciation views with alarm the cstnb
?iskment of br:/'ch banking in tho
United States a.Ml the attempt to per?
mit and legalize branch banking; that
s-e hereby express our disapproval of
and opposition to branch banking in
snv form in our nation.
?"'Resolved, That we regard branch
banking, or the establishment of addi?
tional offices by banks, as detrimental
to the best interests of the people of
the United States. Branch banking: is
contrary to public policy, and violates
th(- basic principles of our govern
l?ient, as it concentrates the credits of
the nation and the power of money in
the hands of a few."
Calls for Change In Laws
Jhe trend of tho meeting had pre
?ioutly hf* n Indicated in the reception
o.' trie report of the federal legislative
commit"?.,"1. prepared by Guy E. Bower
man and presented by Deputy Man?
ager George E. Allen. In discussing
the subject the report said:
"The question now is not, Shall we
have branch banking;? but rather.
What shall we do with branch bank?
ing? It isn't going to arrive. It's here
and those who do not look this fact
iquarely in the face are, I think, stand?
ing in their own light.
"If you do not want branch banking
In your state, since you are alive tc
the probabilities of the situation, yot
should use your best efforts to prevent
the enactment of legislation whicl
makes it possible. If the present law;
are unsatisfactory, endeavor to corree
them by elimination or amendment."
The report concluded with the ex
pression of an opinion that it woult
be selfish and bordering on cowardic
te refuse national banks privilege:
which state banks enjoy and that or
(unary business prudence* shoulc
prompt the division to direct its efFort
toward circumscribing branch bankin
to cities of 100,000 population or mort
Th? expression was attacked from tbi
foot by S. D. Scudder, of Passaic
N.J.,and was stricken out before th
?port was filed.
No Fear of Monopoly
President R. 3. Hecht, of the divisio*
?revealed in his speech the danger t
the association's unity involved in th
fight.
"It goes without saying," said M
Hecht, "that none of us want to se
our independent bankinp* system put i
any jeopardy but, with the exception c
one or two states, there probably is n
real justification for the fear of som
of our banks that their autonomy an
independence rire in any danger an
that we are threatened with any soi
of monopolistic control. We shoul
not permit the is;ue to become undul
eir.fused, for there is all the differenc
in the world between the unrestricte
expansion of branch banks on the Enj
lish and Canadian principle and th
permission to operate several office
within the sam ? municipality in whic
the orincipal office is located. The on
really does carry with it the danger c
too much concentration of power i
the hands of the few. The other i
usual!*- merely a convenience to th
pub-i.c-the ?^'???gmg of the bank to th
people.
"After all is said and done, the ret
place to make a tight against the ey
tension of the branch banking svster
is at the state convention and the ses
sions of state legislatures, becr.us
nothing that we can do at this meetin
can change the laws of the state
which permits banks to operate mor
than one business office,
'?There is, however, one aspect c
the case in wnich all of us have a ver
direct interest, and that is that w
et:ou!d insist that the Federal goverr
ment absolutely prohibit national bank
irom invading the territorv of stat
banks with 'additional offices' c
branches in states where the stat
?aw denies tho same privilege to stat
banks. We believe that it would t
quite unfair to permit banks chartere
spder the Federal law to compete wit
?-ate chartered institutions on sue
SDeqjal terms, and the members of ot
??vision should protest most emphat
tally ??gainst any interpretation of tl
"W which would make possible sue
competition in the states where 01
0Vfn members are denied the san
privilege.*'
Threat to Quit Organization
.The protest of the Cook County a
??'.ation, delivered in the spirit of d
landing a hearing on threat of qui
bfig the major organization, provide
-he major topic of conversation amoi
Jj>e banking delegates yesterday. ?
the Hotel Biltmore. the Cook Coun
?legation was jubilant, the headqua
ters of the anti-branch bankers a
tour.cing that a bloc of 1,500 delegat
j-ad been rounded up to support ai
resolution that it might offer. At
meeting late Sunday night it was a
ranged with President McAdams ai
???-President Puelicher that effor
?fhP?eveRt a vote or t0 stran*?-e t
i, ate at t'le general session would n
Be ?permitted.
f0I <Jue5tic,ri will come up to-mo
w- at ll:35 a. nl-) wrien Andrew
br*. ?' cilillrman of the Waukesha N
Ky Bank. Waukesha, Wis.. at
?ifln.i0 incomer, president of the N
22? ^change Bank, Baltimore, a
/ne?uled to open a discussion to la
?firi??"rc,Land flfteen minutes on tl
rent.,* !?aH national banks be pr
?Ai? *l?m establishing branch
?m their home cities where th
g* ls exercised by state banks
,*?e committee which is leading tl
3 -A-!!, ,Jeffr"-s. of St. Louis; P.(
\i V.i? of Chicai-?*. A. W. Tremai
h?rfrff*^ Conn*: Mr- Frani
'-ou?? I?11,00*? of Milwaukee; W.
LS""' J?? Hannibal, Mo., ai
^ W&l,?We"' ?f the C?'
Jahn McHugh, president of The
Mechanics and Metal* Bank of
New York, who told the Clearing
House section of the American
Bankers' Association yesterday
that the United States might
help stabilize European econom?
ic conditions by a partial reduc?
tion of tear obligations.
He'll Address Bankers
Fred I. Kent, vice-president of
the Bankers' Trust Company of
IS'ew York, who will be one of
the principal speakers Thursday.
.Wall Street
Entertains
Big Bankers
(Continuel) from paga ene)
Washington in attempting to collect
checks over the counter was not merely
for the purpose of collecting the
checks, but was absolutely for the pur?
pose of intimidating, annoying and
forcing that bank to remit at par.
"Your committee suggests an amend?
ment to what is known as the McFad
den bill. The McFadden bill is simply
a bill which allows I the banks to con?
tinue the collection of checks, but in?
stead of the clause which exists in
Section 13, which says that no charge
shall be made against the Federal Re?
serve, we have suggested an amend?
ment, which is as follows: 'Subject to
conditions of the Federal Reserve
Board, any Federal Reserve bank may
collect any check or draft by sending
it to the "bank on which it is drawn
and may charge to the bank from
which such check was received such ex?
change or remittance charge incurred
in the collection of such checks.'
"We feel that with that it will be
optional for every bank, member bank
or non-member bank, to charge as it
S t? 6 S 11 t ?
R. S. Hecht, president of the di?
vision, and president of the Hibernia
Bank and Trust Company, of New Or?
leans, said that the controversy could
probably be settled on some basis fair
to all concerned when the two vacan?
cies now existing on the Federal Re?
serve Board have been filled.
To Make Charge .Voluntary?
"We believe that the officials in
Washington," said Mr. Hecht, "have
come to realize that, it will be far
better for the Federal Reserve System
and for the banking fraternity at
large if certain features of this prob?
lem be made voluntary instead of com?
pulsory, and that the economic good
which it is designed to accomplish can
better be brought about by evolution
than by revolution. Certain it is that
a working agreement of this sort will
go much further toward a permanent
solution of this problem than acrimo
| nious debate, legal controversies and
I even legislative enactments in some
. of the states."
\ _ The third situation which is creat
! ing some nervousness as a possible
! cause of a rift at the general session is
. the suggested removal of the associ
| ation's headquarters from New York
to Washington. This v.as advocated by
| the executive committee at its meeting
! at White Sulphur Springs last spring.
In view of the fact that they are hosts
to the convention, New York bankers
hope that the question will not be
raised here, while other bankers, who
strongly favor the proposal, are re?
luctant to bring it to a vot^e at this
meeting.
John McHugh, president of the Me?
chanics & Metals National Bank,
drew favorable comment by his ad?
dress before the Clearing House sec?
tion in which, declaring himself opti?
mistic as to America's future, he dis?
cussed some phases of the European
outlook and their relation to this coun?
try's welfare. He law ground for hope
in the fact that Europe's chief diffi?
culties are at last crystallized, a
notable sign of change abroad being the
recognition of the dominance of eco?
nomic forces over political forces.
Stabilization the Remedy
"The fundamental remedy for the
plight of Europe," said Mr. McHugh,
"is what might be called stabilization.
The economic weakness of every
country abroad springs from the de?
struction of international c-va?dence
To-day's Convention Program
The first, general aisembly of the
American bankers convention will be
held to-day in the main ballroom of the
Commodore. The program is ns follows:
9:30 a. m. sharp?Call to order.
President Thomas B. McAdams.
9:31 a. m.?Invocation, the Right
Rev. William T. Manning, D.D.,
Bishop of New York.
9:35 a. m.?Address, "The Amer?
ican Banker'? Responsibility To-day,"
Thomas W. Lamont, representing the
hosts, the bankers of New York City.
10:05 a. m.?Address of the presi?
dent, Thomas B. McAdams.
10:35 a. m.?The executive council
and administrative committee.
10:40 a. m.?The committee on
state taxation, Ernest J. Perry, chair?
man.
10:45 a. m.?The committee on
state legislation, Craig B, Hazlewood,
chairman.
10:60 a, m.?The committee on
Federal legislation, A. E. Adams,
chairman.
10:55 a. m.?The American Insti?
tute of Banking; retiring president,
Robert B. Locke.
11 a. m.?The state secretaries;
Andrew Smith, president otate secre?
taries' section.
11:05 a. m.?The clearing houses;
John R. Washburn, president clearing
house section.
11:10 a. m.?The trust companies;
J. A. House, president trust company
division.
11:15 a. m.?The savings banks;
Raymond R. Frazier, president sav?
ings bank division.
11:20 a. m.?The national banks;
: John G. Lonsdale, president national
bank division.
11:25 a. m.?The state banks; R. S.
Hecht, president state bank division.
11:30 a. m. ? Address, "Public
Health Assets," Dr. George E. Vin?
cent.
12 m.<?The committee on public
education, John H. Puelicher, chair?
man.
Appointment of resolutions com?
mittee.
Communications.
Announcements.
Adjournment.
The meeting of the Savings BanV
Division in the main ballroom will b<
opened at 2:30 o'clock by the annua
address of the president of the division
Raymond R. Frazier. The progran
follows:
Reports of committees printed and
not to be read): Federal legislation,
Charles H. Deppe, chairman; state
legislation, Thomas F. Wallace, chair?
man; savings, Alvin P. Howard,
chairman; investments, George E.
Brock, chairman; mortgage loans,
John J. Pulleyn, chairman; liquid
investments, Samuel H. Beach, chair?
man; banking facilities and service,
Samuel M. Hawley, chairman. An?
nouncements. Appointment of com
mittees, (a) resolutions, lb) nomina?
tions.
Three o'clock?"How Savings Banks
I rom ote Thrift and Saving"; (a)
Service to Depositors," Georgo E.
Brock (Boston), president National
Association of Mutual Savings Banks;
(b) "Industrial Savings Banking,"
Jarvis Hicks, secretary and treas?
urer Long Island Savings Bank, New
?ork; (c) "Savings Bank Advertis?
ing," Victor A. Lcrsner, president
Savings Bank Association of New
York; (d) "School Savings Banking,"
Alvin P. Howard, vice-president
Hibernia Bank and Trust Company,
New Orleans.
Four o'clock?Address, "Thrift and
Thrlftlessness," Nicholas Murray
Butler, president Columbia Univer?
sity. At 5:15, annual meeting of the
savings bank division; minutes, un?
finished business, report of the com?
mittee on resolutions, report of the
committee on nominations, new busi?
ness adjournment.
The state secretaries section will be
called to ore er at Z:30 at the New
York chapter. American Banking In?
stitution, Room 1, 16 West Thirty
seventh Street. The program is:
Annual address by the president,
Andrew Smith, Indiana; appointment
of committees, resolution, nomina?
tion; report of the secretary-treas?
urer, M. A. Graettinger; report of
committees by chairmen: Committee
on forms, W. C. Macfadden, North
Dakota; committee on insurance,
Andrew Smith, Indiana, and com?
mittee on simplified income tax
forms for banks, W. F. Keyscr, Mis?
souri. Round table discussions of
the following subjects: "Protective
Matters," led by M. A. Graettinger,
Illinois, assisted by Robert E. Wait,
Arkansas; Frank Warner, Iowa; F.
H. Colburn, California, and W. B.
Hughes, Nebraa-ka. "County Organ?
izations," led by W. W. Bowman,
Kansas, assisted by Haynes McFad
den, Georgiu; S. A. Roach, Ohio; W.
A. Philpott jr., Texas, and George D.
Bartlett, Wisconsin. "How to Suc?
cessfully Tut Over the A. B. C.
Campaign," led by C. F. Zimmerman,
Pennsylvania, assisted by Georgo H.
Richards, Minnesota; Edward J. Gal
lien, New Work; Mrs. H. M. Brown,
Michigan, and H. G. Huddleston,
Tennessee. "Taxation of Bank
Shares," led by W. C. Macfadden,
North Dakota, assisted by W. F. Key
ser, Missouri; Harry G. Smith, Ken?
tucky; George B. Power, Mississippi,
and W. F. Augu?tine, Virginia.
"Shop Talk," led by Eugene P. Gum,
Oklahoma, assisted by each secretary
present. Report of committee on
resolutions and committee on nomi?
nations, election and installation of
officers, adjournment. The newly
elected board of control will meet
immediately after adjournment.
At 5 o'clock the nominating com?
mittee will meet in Room 7, New York
chapter, American Institution of Bank?
ing.
Tariff\ Finance? If s All an
Open Book to This Policeman
Anyhow, Chief of Convention Detectives Looks Like
a Banker and His Opinion Is Sought Till
Somebody Tips Off the Delegates
Five bankers discussed European
finances in a committee room on the
convention floor of the Hotel Commo?
dore yesterday afternoon?that is, four
of the group took part in the discus?
sion. The fifth sat silent, though ap?
parently interested.
The silent man, tall and of dignified
mien, wearing the modest habiliments
of assured financial standing, was a?
last appealed to for his opinion on Im?
portant issues?the European situation,
American participation in foreign
financial affairs, the position of Ameri
can agriculture.
"Well, gentlemen," said the dignified
man. "I suppose sooner or later we've
got to jump in and help those Euro
? pean cripples get on their feet. If
: we've got to do it eventually, why not
now? Me, I always believe in grasping
the nettle firmly."
"Precisely my idea," remarked A. C.
Smith, president of the Citv National
; Bank of Phillipsburg, N. "j. "If a
thing's got to be done, for heaven's
sake lot's get action and do it. What's
j'our idea of procedure?"
"As to that," smiled the tall, digni?
fied man, "I put it up to Lamont. If
anybody knows what ought to be done
and why, he's the one. I'd be willing
to follow his lead most any distance.
Yes, sir, Lamont knows the foreign
fiend inside out."
"What about the tariff?" demanded a
banker from Tampa. "Isn't it going to
help price inflation and leave us worse
off than we are now?"
"The tariff," began the tall, digni?
fied man. "Now the tariff?well, .if
course, the tariff?that is, the tariff
won't"- * ?
"Oh. Gus," interrupted a muscular
young man in the d-oorway. "They want
you on the phone."
The tariff tinker went out hurriedly
and disappeared down a corridor.
Ho did not return. *
"Wish I had asked his name," re?
marked one of the group.
"Oh, him," explained an attendant.
"That's Detective Sergeant August
Mayer of Police Headquarters. He's
in charge of twenty-five dicks on the
floor here. They're all got up to look
like bankers."
It can be swept away only as interna?
tional confidence is restored, and as
the interchange of credit, on a firm
basis, is renewed. This means that
international obligations must be ad?
justed in a way that will permit indi?
vidual nations to progress. It means
a balancing of budgetB, an ending of
the orgy of inflation and a return of
currencies, perhaps with the help of
I our gold, to a fixed standard."
! Mr. McHugh said that the fixing of
j the German reparations. had a sig
i nificant interest for us not only be
j cause of its relation to international
trade and finance, but because of the
i extent to which America has thus far
i contributed to the payment of repara?
tions.
"There are no exact figures avail?
able," he continued, "but it is conserv?
ative to say that several hundred mil?
lion dollars of American money has
been invested in German markt?. By
selling marks the German interests
have established balances in New York
and elsewhere, against which they have
drawn to apply on their reparation pay?
ments. In brief, then, America has
contributed handsomely to the pay?
ment of Gsrmany's war penalty, How
costly the operation has been may be
judged when it is pointed out that, at
current quotations the marks for which
an American paid, let us say, $100 are
worth less than $2."
Mr. McHugh said that the time had
come to determine a definite policy
with regard to the Allied debts to the
United States Treasury, and that can?
cellation, involving compromise rather
than repudiation, might be prompted
by the abnormal state of international
exchanges, the difficulties of the world's
credit problems and the cfrcumstances
under which the obligations to us were
created.
Clearing Houses Increase
John R. Washburn, president of the
Clearing House section, told the dele?
gates that eight additional cities had
adopted the examiner system used by
the larger clearing houses, and that
the number of clearing house associa?
tions had increased thirty-six during
the year. The section elected the fol?
lowing officers; President, Joseph
Rinold, of -Denver; vice-president,
Francis Coates jr., o? Cleveland; mem?
bers of the executive committee, terms
expiring in 1925, John Downing, of
Louisville, Ky.; Howard Wolfe, of
Philadelphia, and member of the com?
mittee, term expiring in 1923, R. E.
MacGregor, of Minneapolis.
Marshall Cousins, Commissioner of
Banking of the State of Wisconsin, in
an address before the state bank divi?
sion, outlined the functions of the
country bank, which he described as a
powerful, indispensable link in the
American financial chain. He cited fig?
ures showing that of the banks report?
ing to the Comptroller of the Currency
and the State Banking departments
8,917 wer* national bank* with total
deposits of $15,390,438,000 and 22,302
were state banks with total deposits
of $23,510,877,000.
The state bank division elected the
following officers: President, H. A. Mc
Cauley, president of the Sapulpa State
Bank, Sapulpa, Okia.; vice-president,
J. D. Phillips, president of the Green
Valley Bank, Green Valley, 111.; chair?
man of the executive committee, W. C.
Gordon, president of the Farmers' Sav?
ings Bank, Marshall, Mo.; to executive
committee for one year, Guy E. Bower
man, of St. Anthony, Idaho; to execu?
tive committee for three years, N. S.
Calhoun, . president of the Maysville
Bank, Maysville, Ky\, und W. P. Sherer,
president of the Midland Bank, Cleve?
land.
Entertainment features of the day
included an illustrated lecture at
Aeolian Hall on "New and Old New
York" and a dinner of the Association
of Reserve City Bankers in the eve?
ning. To-day the main business and
addresses of the convention get under
way.
Loree Demands Ixibor
Be Put Under Restraint
L. F. Loree, president of the Dela?
ware & Hudson Railway, declared yes?
terday in_an address before the Clear?
ing. House section of the American
Bankers' Association meeting at the
Hotel Commodore that the time had
come to put restraints on organized
labor if freedom and equality of oppor?
tunity were to be maintained in this
country.
He advocated legislation to enable
the state to supervise every vote for
strike or lockout, saying that such a
step would "insure a secret ballot, free
from intimidation or misrepresenta?
tion, and its honest count," and would
rescue the American workman from
the tyranny of "labor professionally
organized?where the great mass re?
sponds to pressure from above, ex?
ploiting and being exploited for the
benefit of its rulers."
For the protection of the country, its
workmen and its employers, it3 con?
sumers and its producers, laws should
be enacted, said Mr. Loree, outlining
them r.s follows:
"1, To provide that voluntary associ?
ations of seven or more members may
cue oi be sued.
"2. To make the records and ac?
counts of such associations subject to
public authority, and to make political
use of union funds a criminal offense.
"3. To give state authorities better
facilities tor labor dispute investiga?
tion through the power to subpoena
witnesses; also to make available to
the public full reports of iuch investi?
gations; then to compel .fourteen days'
notice of intention to strike or lock
out "
Mr. .Loree declared that the labor
leaderi^'assertiob that the "rightto or
ganize is denied" is a "man of straw
set up to be knocked down." The point
in question, he said, is whether the
labor leaders can hold their power
without "resorting to 'murders, beat?
ing and slugging.!,' as set up in the
recent proceedings of the Attorney
General at Chicago; whether incessant
attacks upon the police power of the
state, the injunction power of the
state's courts and all other instruments
of power evidence the purpose to set
up the supremacy of the union over
and above the law of the land."
Mr. Loree declared that capital
should not lose confidence in itself. "It
is to the interest of every citizen that
we should have," he said, "a common?
wealth founded upon industry and fru?
gality and recognition of the rights of
thoso:who save and invest, wait and
lead, take risks and responsibilities, as
well as upon those who obey and work
with their hands. . . . Capital has
no reason to be abashed by an analysis
of the part it has played in civiliza?
tion. It has mado that civilization
possible."
In conclusion he ?aid: "The labor
unions cry to heaven that they have
the right to organize. No one denies
it. But let them in the exercise of
tho right assume the responsibilities it
entails. If they claim the latitude and
advantages, let them also share the
restrictions and .burdens of organiza?
tions of capital."
High Fares for Foreign
Travelers^German Plan
Berlin ?Newspaper Suggest?: the,
Scale Because of Differ?
ence in Currency
BERLIN, Oct. 2 (By The Associated
Press). ? Foreigners traveling within
Germany would be required to pay
higher railroad fares than Germans or
Austrians, because of the greater value
of foreign currency, under a proposi?
tion advanced to-day by the "Vossiche
Zeitung."
The newspaper directs attention to
the fact that until recently the rate of
exchange on the American dollar en?
abled foreigners to travel second class
from Berlin to Munich, for 25 cents.
The rate now is only about half a
dollar.
Tho newspaper advocates the inaugu?
ration of a double tariff on interstate
express trains to evade a peace treaty
stipulation which applies only to trans
Continental service.
In some quarters it is alleged that:
foreigners recently have been buying
several tickets each in order to make
their journey more comfortable by
having several individual seats.
wssmmiaHi?smm?Sfmstmmasm&m?mmmimumm?atmFa
Exhibition of
Old Masters
Specially arranged for
The American Bankers j
Association :
including: Paintings by ?
BOUCHER RAEBURN ? ;
REYNOLDS VAN DYCK. I
RUBENS CONSTABLE 11
EHRICH GALLERIES I
707 Fifth Ave., at 55th Siraet \ ;
MRS. EHRICH'S GALLERIES j
Ar.tiquea?Italian Linen
Cant.-igilii?Venetian Giasa
"Unusual Gifts !
for Unusual People"
Tkomas W. Lamont
i ^*A>
Member of the firm of J. P.
Morgan & Co., who trill address
tho convention to-day on "The
American Banker's Response
hility To-day."
He Speaks To-morrotv
James S. Alexander, president
of the PLitional Bank of Com?
merce, who ivill address the
bankers in convention.
Acute Farm Crisis Past,
Meyer Assures Bankers
War Finance Corporation Head
Says Economic Improvement
Is Mont Rapid in History
In an address yesterday before the
state bank division of the American
Bankers Association, Eugene Meyer
jr., managing director of tho War
Finance Corporation, declared thnt the
acute phases of tho agricultural crisis
of 1020 and 1021 are over.
"The nftermath, In tho form of a
burden of debt on tho farmers of the
United States, still remains," he said,
"and some thousands of banking in?
stitutions in the country districts are
still in an over-extend"d condition.
But probably at no time in our history
has there been so rapid and extensive
an improvement in our economic con?
dition a3 during tho last eighteen
months. The position of the farmer
and stockman is favorable, and, al?
though there were declines recently in
the prices of some commodities, most
staple farm products are considerably
higher than they were In tho summer
r.nd fall of last year."
Continuing on the subject of agri?
cultural financing, Mr. Meyer said:
"The keynote of our national policy
should be the development of the use?
fulness of the Federal Reserve System
to tho maximum. It would be uneco?
nomical and unsound, it would be the
height of folly, to set up other agen?
cies for doing the things tho system
can and should do.
"While it Is important to safeguard
tho Federal Reserve system by proper
restrictions regarding eligible paper,
it is equally important to safeguard
the business of the country by avoid?
ing discrimination against paper which
may properly be considered as eligible.
The system nave us banking elasticity
in a way that was long necessary,
but it also created a difference between
different kinds of good paper. Before
the system was established paper was
judged on its merits. It was good or
bad, according to the worth of the
maker and the security back of it.
There was no distinction between dif?
ferent kinds of good paper. But now
good paper is classified either as good "
rediscountable paper or good paper
that is not rediscountable; and bank?
ers are considering their loans, even
where they have no intention of using
them for rediscount purposes, with re?
gard to the requirements of eligibility.
We must not overlook the fact that,
while the system has greatly enhanced
the desirabilitv of eligible paper, it has
correspondingly decreased the desir?
ability of non-eligible paper, even
though that paper may be satisfactory
in every respect from the standpoint
of security."
Mr. Meyer urged that our national
policy should not only look toward the
further development of the Federal
Reserve System, but that it should
recognize the fundamental importance
of welding into a closer and more
harmonious unit tho different ele?
ments that go to make up our banking
structure.
"We are at a parting of the ways,"
he said, "and now is tho time for us
to determine the direction in which
we are going. We must decide whether
we shall continue the more or less
haphazard development of our banking
machinery, or whether ou*- action shall
proceed along lines based upon a com?
prehensive view of tho needs of the
country, bringing our entire banking
structure and resources into a more
harmonious and unified organization."
Stricken Landing Fish, Dies
CHICAGO, Oct. 2.?Mrs. Grace T.
Carr, a clubwoman, died to-day after
lying comatose for eight days, the re?
sult of being stricken while trying to
land a muskallonge at a Michigan lake.
New Force for Fort Tottcn
WASHINGTON', Oct. 2.?Fort Tot
ten, New York, is to get immediately
seven additional companies of coast
artillery, under orders issued to-day by
the Adjutant General's office of the
War Department. The companies and
their present stations aro a? followij
Ninth and 37th Companies, Coast Ar?
tillery Corp3, Fort Terry, N. Y.; 17tl?
and 33d Companies, Fort Mills, P. I ?
29th Company, Fort Winfield Scott,
Calif.; 30th Company, Fort Worden
Washington; 32nd Company, (inactive)
C. D., of San Francisco, Calif.
Tiffany & Co.
Fifth Avenue & 37^ Street
"Watches and Clocks
(Pronounced TEE-BO)
\AUT
Correct Styl
(o)
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Have you picked oat yonr Thibaut wall
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