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Since the pr^sout b i l l \
res» f t . .
hearing* before th< H
ioa. ftith t
in M aaci
II, I
U &c. the ooamitv.. t aay . . :.
But I
I k
'
•/.
o fiabBit at thi. t l s ' • -1 AJ&
the purpose« of t h i s seotlou o:
|
%
or misinterpret* ti^»a vhich A
II
Act*
atv
a*
r*t&in proposed &3J •!• tt tttt to tfa
Thft< fc« ncai a i , though i n our judgaent i i
'.!.:.,. limit.u Hiic ciefinit-
bita • difcpositi
fian th«jy oonti in.
I — s r y i are
in :
has
I >I ro Tie cri*ici to rot
Th | i r t in ao semse r v^lu
1 undAaeaU.1 ohr:
o: th
„ B| s
i. Th
"ie •per«-tion
philosophy •
I«
th |
« or
<«o not destroy the regional
•
•
ri
of th^; o.'llir.l t o n d Rue
I -a.
i
ia
it b
>i*e
utrters th* « coanisslon #hould be
to the national Monetary Conanlsslon which was appoint
. Id of o tr b
o
v O';l'«£| vhioh •• :
i ovi. leas of thi« bi I ,
Much broftd. r ir.
:
i
t
II l.\ • hfeoty, proJwAl
ieftl wi
be<m 3U|{ge8tt'd i n Bo
,
.sties
It criticism has been a»dr
t
1
I "ictf as eo M c r i t i c s h
/ot«a th* cr#*turtt oT :x>li
iftuK
n'
ve
t»
Titl^ II ten not
' M»« Thiti b i l l
ior
, ooaperi
1
• •
to COT r tl
aKwrUke to
at jo;
i
J
v
r: nci\ banklngf '- •
, th* poael''illtl<t« oi un
„ . . - • •
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in t '..:.- r.
• K I I i-.-i 'ivi
to
o 1 MTtiT
c
i e
;»• o f t h
necta
n B*.at
bill.
T h « • --.--M -. - f . i ' ' t
LjQK
I
Llitt
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I t iy not ir.ir*'u~n*ly cdroce
o.»o»e<i a«a«ure and thial
as di« U- jaUMgl
'-»•
ad ' i. 'i
t I* ^««ie»t to
• of * co^aissio
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l i g h t of
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bw4M Bft« 1
P«Jft d w i t h e it c o i j x t n t a d r i e e
I
co
A-* ]
f-1.
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•• t-
•th i n
it«Bj end L t i a• n
.
':
povi
XI f a l
Lap
-
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v
1
chai
i a
-
4.
orau
• t« H
it.
i
'«ii>* vie.
Tbi prC"
a at* r hi,> In 1
i in 1
.. • -1/
a la 19: 7.
ill fin
rdost way to
;jtw»#
La this <
la
L ,
:ig
institutions, id to n@k a «b>rrhip in tlub
• a «'• r
lc^ n an r
11 j
•• .
I
to 60
B
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.
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" r a r-. l l y
.-
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T
i
:yst««
1
c.
ill
1
. .
fitii r
- i ab
to eligibility we provost t
l i ui i y,
« nt •
It i
s.I'.
imn coec«ry f in. t h i i op.ni:ig i>t«te-
. : to fan extended ciecuesi^
T.'. w, M whK
cW
of bhnk
11 I" i l l ' y .) ovi |oM of th«
origin 1 federal Hewerre -at were b^eed, •*«.» that bank aeeets should b#"aelf(Sftuwftrv
rtai#r#r
t&* in«rf ts ©s |
rfev«
•_•: it
i long
;
.1se**rded by mny leaA1?vv- students of anroy •••• •
th t tttfih assets today vwspr
!
f ct
rc*nt of
"1
\ bank n?s*t3«
they ware l t t i than a Majority ->f bank aasets both in t h i i country
land*
»?-
Mor*oY*r9 tueh js^eta («o-^* l l # d • e l f - l t q u l l ti^*r e w » r
w«r# "^v#r t r u l y « e l f « l i q i i l d a t '
any «ntrgt«icy«
^y w»r^#
of
< atsets
th 3 1;.
•
;* iy licj
eontr 1 b nkin^ L&ttlt
In HI
*.-ie fu r
'ueh l i
the criterion th :t the as«et« shsll be «<m ,
Id
al^« of 191C-
be l i t t l « or at ^ccns'on to rediscount th«m^ fhir
t?er« du« primarily to the frozer oonditi
v ~*r)
f
>f
mtj-ct 0 ;ly to
hero i t '^ot
e-n n#v«r be
any vabstltute for sotmdnesst which womX be Vised open the eor.opr
of b n>:irm juAflraert.
Th« oreeent provision would lntrodue« 1 to the
*eerre
ct for the f i r s t tiiae the expree* recjt^re««*l of ftouadneee of aeeets m the
fttRdaaental -i^d ei^rl? requirea^nt for e l i g i b i l i t y for rediaoo-arts HI e
If th© ^eeenre banlte f^re to b« of genuine ft«Ai«tane# to the aonmfffllal b
they n u t «erve am en n|iiiiy for liquifying in eaercenel«9 H eovid eee
thurlnp the de^rwuil^rj ratify batftai were forced into V-rteruntey ^»ct bee^une
were Ml but beeanee they e^nli m% aeet Vvn n-rrow, r*3trlcted» and
l l y unroo.littie e l i g i b i l i t y r*quireEw-t«it ead i t b«o-w^ "ecemary by
the Wiii"twe>jin <'**% of ?ebru^-ry 19
to ?aee •—rjinqy
the aeabwT batdn t^ borrow from the Reeerr^ b^tOct tm ^oiznd
suets*
b*ea ett^eeted th)t this rtaendnent will iianiir the a«««t9 of the
theneelwes.
The In
It hnt
M«rrf b
evidently i s th t the fteeerre bankt will lose
their power of judfsent of the soundness of b.-oik assets*
Tfcst t h i s fear i s
wholly fanciful would seem to be proved by th# f&et tV-t under the
Act f he Reverse b^nks have Ht.de lean* of tintt ch^r^oter aam.it Ing to
over $300,000,000. of which a l l but $1*^00,000 have be** repaid.
Mmsa the e&ae r^tfsoninjc i s applicable to the
te collator 1 for federal
;?
.eserv* notes*
r o o i e d ehnn^e with respoct
Sere &$4n i t has been found by ex-
nerler^we thnt the restriction* imptmeA by the original Federal Beserve
ct
re wUhout ->r e t i e a l effect except In eaer^eneien* when the e f f e c t l« bad t
hr
ct ^roTidtl t v t iMMiii W l i t 0tHM
*? eov^rod -?-ly oy rol'i (W> ^<»r-
ee«t Hdniane r »#rv«) and by corrcurctsl ptqmr*
A» i r
ly *t ted the ttroply
of «MM9tt*l peap«r if) the »«ttbor banks t s ctMspar- tlynly imnll and s«s been
dlaiwishing.
Owin^ to the f%et th t the H#«erv» banks obtain paoer
the n—bir bAfiks redleeovnt, there hae ft! tlm<*» been in lumta thort>-ge of
paper wr^il b l e
n e o l l ter I fnr H^tarre notes, ,*nd In o^ftequen** th# Re-
«erve b&nJet h*iv«? t tln^m fc
Tta*«>lT9*i T«vt>r4lly r#«triet«d in
to render service to the i, DIISSJ 1
.
Opti-gnrtefrt ifsmB«ieeMia for
designed to redact the lidebtMziees ^f the —Jsmr banks to the ?v«i*rve
sad thereby to encourage credit *r.p*&s\<m as A means of
l l e v i t\?« defl t l o
pressure or oven pfts&e), «sgr be seriously hmipersd or «ven prevented \lt««*ther
by the fact that rsdttStion of reAtscosnts rsAmee the cmswit of ecsnereiel
P per
v 11 ble »s eoll:>ter 1 for ?Hbste4 Beserv
notes ?i«d neceasit- tea the
substitution at note c o l l a t e r a l of corre^noaAinf amamtn of /-old.
t t e Os^mUiee
w i l l recall th t after tnj|and 9 s suspension of the «old st -nd-^rd n September
1971» which w-1 followed by * l«r(gs rjrsort sf «ol^ and en inteir«-l demand for
Reserve ^otea, the r<>serve System In co^9equ nee of the shert&gs of eotsaercial
rv -pr y i sjsjspsmail ss H i V
H^XX>,000»00<
Is p H li tmsjsjM sf i 'v
7«ild r « u m requirements, and was reduced to only $400,000,000 of *free gold*
wherewith to defend i t s international §»ld standard position.
It vat unable
to take any open smrkot action to relieve the severe deflationary pressure tipoa
the banks m i l l the paetage of the 0eats~3te*4*ll Act la Febtuery If3t« niOclng
government securities eligible at oollataral for federal Reserve aot«t.
Tha prat ant amaadnant propoaat a jptaaral a* tat ourrancy, which oaant thnt
ratanra notaa thall ba aaour d by a liaa on tha «*neral attatt of tha
banks, la addition to tha 40 paroaat mlnUrtan ^old ratarra.
MITV
It also moans that
tha zaembar banks will V« abla to obtain federal ^atarrc not<it by pledging any
sound atsatt at the Kesenre banks*
If this anendoaent Is enacted, and alto
that making all sound assets eligible for rediscount, both of our forme of
ffloney, deposits and bank notes, will for the first time have a uniform basis.
The Hesenre banks will b% able to supply either deposits or notee to the member
banks with equal facility, and the member banks will be »ble to obtain either
deposits or notee, as public decuuid may require, from the * e»«rye b^nks by
pledging any eound assetn.
Both deposits and notes will ba additionally secured
as at present by the gold reserve requirement.
In the original Federal reserve Act, the requirement of ooa» t cial parar
fis tha exclusive oollateral for Federal
averve notes was based on tha desire
to provide an "elttstic* currncy, nnd tome orltlct of the present aaendiaant
have charged that the proposed change will ircpalr the elasticity of our notes.
The earlier views a out "elastic* currency were based upon a confusion of
ideas.
They were drawn froo the experiencee of the Rational Banking System
prior to tha establishment of the Federal
e«»erv© System and failed to
reco0iite that the establishment of the "aearve System and the grantin^ of
the function of note issue to that System completely altered the circuastances.
8.
When the menber banks do not themselves issue notes but obtain them from the
eaerre banks In response to
ublic demand, the problem of providing an elastic
currency is thereby solved, provided only that the banks are not hampered in
their ability to get these notes from the -eeerve banks, or the leserve banks
hampered in their ability to provide the notes, t hrough any legal prescription of some specific typo of bank assets against which the notes may be
issued.
We have already soon how in the emergency of 1931-2 the prescription
of a special typo of bank assets, commercial paper, resulted not in an "elastic"
currency but in precisely the opposite of that. Wo believe, both theoretically
and practically, that the correct way to insure an elastic currency is to make
the Reserve note available to the member banks in exchange for any sound assets
and to make the Reserve banks able to provide Heserve notes against the security
of any sound assets.
It has been argued in some quarters that this amendment would impair the
quality of our bank notes, and would also remove existing safeguards against
excessive issue of bank notes.
lelther of those criticisms has any merit.
The first overlooks tho fact that the Heserve notes will not only be covered
fully by Heserve bank assets, all of which would be sound assets, but would
bo a first lien on such assets, which moans that the demand of note holders
would be satisfied prior to the deposit claims of the member banks against the
Reserve banks. Tho cnltlclsm that notes might be issued in excessive amounts
overlooks a number of elementary faots:
first, that la a deposit-using country
such at ours, currency plays tho minor rolo of providing small change; second,
that in consequence of this fact, tho demand for currency is morely a function
of tho demand for deposits, rising and falling with tho stat- of trade as
reflected La itpMltftj arid third, Uu t under any eyetere thtt .^ivrju | i
cc.i. i
i n s t i t u t i o n the -onopoly 01 Mi* La—§ th« rae»ber bank* cannot LMti n.Hea
to the jublic except at they obtcin thea froa the re erv© feMkt
pledge of their tas«te«
I t i s only In tlaec of great emergency or v.nlc, efett
the public IB axpre#ein,* i t e dLatruet of btnks toy e wholesale conversion of
i t s de;3O«lt6 Uitp noto:»t Uuit currency iasue unsusias 1
o trtiemig
.nd
ut sucn t i a e s ta »« huva :i;-d cm severtl occ>tfiou8 to ret It:e durlnj; this
depr«o»ion f i t i» ospoctally det*-ir*^>le th^t the iiec-erve beak*1
orer LO Mill
the despm! for notac flhoul^ be usihtspered by &ny other restriction llMel the
jfuada&ent&l one thi.t the bsiiets which b&:sks offer la exc^nge for note;: l h a l l be
sound a s s e t s .
The &isexid&entg thus f&r discueeed ft&ve to do st inly u t i
uestion^ of opera-
tion of the fe<ieral Reserve Zyvttr. in the oerfors^nce of i t s functions of
credit supply.
The Femlslaf saendaents de*^l mith -ueLtlons o:
{
el lion
of Uie Bftfamg ;>trticul&rly LQ related to i t s functions of credit control, with
the interne! or^isnitotioa of the Lyaten,
H
LtM to governr«?nt#
I
w i l l not uadertKice to defcti »ith each of theue asendr»<intft In 6<tU Ll in tiii«
opeuing Bt^tei»ent but I do vunt to discuss their gener'.l our:x>: e an'i to titter.;>t
to clarify NQ| nifiuadersjt&ndingc which »ijj::t ajti^t#
Critics of llMM
ejaendmact^ b^va ch^rg^d tii-1 they m'.ve two a*in purposes»
ro >osed
to incro*<** the
...<orer of the h»>orw* bourd over toe *ve-orve bwiKc aM to subject the Ke^drv«
to politlc&l tuUiority.
tfct second criticLtr. a >^«. if to re»t in 1« rge
upon the jroviaiou of Section IO§($) defining the >o«er of fcp;oint;ueGt by
the i.xeeutive of the Governor of the wtsrv*
Bo&rd.
I wi&h to aekt i t cle< r
ve l i i no other intention in dr&ftin^ thi* eection tb< r, to remove the
provision In the present lu* which prohibits i. Governor of the I*06rd fr^r
en-
gaging In the business of tonkin*- for & :*riod of tvo ya«.rt> after hie ter»
ut a soabor of the iJotrd empires.
I t hi-.6 been charged by eooe c r i t i c s tfce.t
the proposed section, which gives to the Governor *»n indefinite t e r a , "to aerve
us tuch until tiie further order of the President," end irakes his tors «o A ae»ber of the JiOfcrd coincident with his terra t* Governor, voul; enable the .'r©3ld»nt|
if he deairo.i, tc c)k&n^e completely the co;;>oeition of the .oard merely by
designating e« cli of i t s Aenoero » cceeeively &s Governor &nd removing him.
ttiil*
such «. auppo^itiou oeeos to us extremely i'&r-?etched, we ere
.ulte willing,
&s * Aeane ox meeting » .narely t«ny such miniiit»rprottttiout»f to le%ve the provisions ot the proaoot It* roeotctlag tli© &;> »oin< meat of the Governor ucch^n^ed,
e*cejt foi the two-ye^r proaii;ition on hi« on tor ing the bfeuJtin^ basinet-s t f t e r
he oe«se» to be Governor*
M l change, which m>& tiie only one «• hnd In mind,
*eenn tc uc particularly det>ir«.f)le &tt & ue&ns of obtaining Lhe beat
/uglified
persons for U*e office or Governor 02 the Bo^rd*
DM Nrltlel** tn&t the underlying yurpose of tnet>e aateadneat» i s to convert the UQi>«ii'vti w/fcte& ksjM
poiitio^lly-oontrolled iiifitltutioa ftpptift to
r e s t in pojrt tl*o up&n ti.e )i\*vit,ions uffectiiig Uie roli-tiuos bet^eeii the He£-nd the Jic^orvo bu\ks, uid porlt—Tsrij
giver to Uie i4>»rd tue po*er of ^p ;rov, 1 of the 6,»,<oiaUfeat of governor© of
the rererva htiuk^* by tualr r e j s ^ t t i v e I m 4 a OX sir—Wi
# • •- - *poa Section 205,
Lob r e l a t e s to tr.s io.i«r*.l Opor* •»•%*% Coc&iitbee*
The purpose 0/ the provitli^ grtnitog tae Bo^rd UM B O V O J o l 1
the A/pointseat of govsmort of ths Ho..6rie bi
of the fact 1
i
oothex worioloa cJ tais bU
JCV. 1 o f
bo viewed in t:e l i g h t
Lne %hm offices
w
w
MU t;over-or or' MM ItMffft tttilJIt
11.
ifactor the prerent ; e t the . c• r •'
already ben the >ower of app*tfttMRt of tfce ehelratu of the neeerv* tank*.
When the he erv# «ot wfc* trtgl—llj M#M4j I t *t« «u?poe<*d th*>t tne cfctlraon
would be the principal offlceru oi their rt>«;retire KttiWi H
.
Xf the
ol'ficeti oi* ciulrsun tmd governor Are to be ^ergeu, .nd co h^ve he&rd Mt ob»
jectioaa to it.*t ^^roviri^oii, which seewj ganer«llj' agreed tt? be in i»ne lutere t
oi* sore ifflwillfi I N N I I fc»ak org{ini:e»tl^n, th» jrfc- I
UM r«
rovisioa MMA4
mi between ihe ^le^arro ^Mtakf MMl the Bo^rd «h^ch the
JO nonet, ry control Sf%lwi £05, on the 7»'5c
U
tuite
1
J Lt«
U ti h*v* b«aa « poyt-i»dr develo^d<itj t
regarded ** * Bftjtf
^
»«ut or
IKJII I
^cl^Wif 09*.
,
.
lj j. -/hone j l g a l f l i .. •.
-
1 h^**
11/ i i« to be
.
. ".
I
.
.--.
.
t
« to be the *o«t iaperUat ft touri of aw
..
,
.
; .. ,
the
^lr
I r— l l t t i f
-
• • u s U n . ecerre btftfctj
ft]
-. . • •. • e ' m l i i ^ ^ of
. .1 voluvc oi Msbtl
as •ptrmtlMUi Cv'i^rUJ, at f I n I
alttv** . f U r
Dviaf 1 rgaly to
te
| BHP9l| tc :
* vh«n redi'iCovintA »e.r« I
or trie gOY-j:
t
, : i r s t i*.* L
'••; { Md -t. U I b
effect to . .--- rw ••. arvtv.
iff not
ve
recognized e»* the pria«lp«l U u t r j u e n t of MBftWry oemtr«X«
the c ire uses t«iicec
|
e orit'
-•'-- HMklX| i..i."v>r:»cAl
not full.,
• ..
>on
| it . >roi?islon of tkli bill*
o->e
t
rl^iitiy regurde^i, boll; fegr L1
.
|4 LtWf
. ,
I I
tee
• n-
,
c> tad *t% M
re
-ly
iitotlon< 1 r c t n e r tiittn regional in pVPgMNM txxd e f f e c t , e t l l l
unier the c o n t r o l of the regional Ket-.erre
tr*o
teake.
©ws In chiefly
. e the isc.ttf»r no*
e t C -^.dttee cotielat.' of tiie governorf of the tr.elve F
itMrfv tepJto| the i-«senre Bo^rd h&a • j o r e r of veto, r>ut e< .:aot In i t l e t e o
iicy end do&a not p . . r t i c L ^ t e in the dL»cueflona of tbe Open U; r k e t
*
Moreover9 the bo&rdc of d i r e c t o r s of the lndLvU". I -crerve bunk*
linger the present lAV| vote to refuse t o jfrtLcip»}t« Lti I
v tton«f
eren fcftar they hi>ve been decided u: ot; by Uioir o^n open- > rkid co:&sittee
ftpffff>v§|tythe ne; erve l0#4 .
13.
% recognise, as hare a l l students of the Resovwe Systea from Its
beginning, that oar chief problen i s to strife* a &nrpmt balance betvesm
aatl'wil and regional considerations In tint OJISA ilsatlon and operation
of the System* Owing to tlM «mat tls« of omr o^uatTy and to tht
ttMtion of our -aUtloal mid itoiiawio capitals, thl« lc A wtl^vw
math at no OHMT *raatiy him had to fao« in th» «npnUatl«a of it«
atatral taddag afilam,
f*t?wwibn ity for
Hw oirwiot prlnci la irmU »ta» to b« that
1 M of national toopt tod « » . « • • should be
lod«ad in UM B»«TfO Hoard aad that aettaal banking operations and a l l
awtlTltlor. or v>Holes of loea 1 o^noova shotOd r*»t with the irrfirldwa
T^eeerre banks, vtfbjeot only to the nsoossaiy daffwt of int«rrs#ri^nal ooordlnatlon*
That opoaemtot onomtlons arc; rasatnentlgr a natter <9f QatlantU
aoaonm aianot bo qaeetl^aed.
V
sio therefore strongly bellow* that the
oorreet solution i s to derise saao pr«Tiaiott whloh will friwe to the
Board, clearly and tnstotftMtty, the
a^thorltsr and reopoasi-
b i l l t y tor opon sartoet ^por^tlons, rmd at tae sasjo tlno enable the Board
to tmto affective use of the regional wlow-v»lnte of the IBoeeffn bnhks and
of their eiriftrlemaa fr«a aotml daily e^ntaot with the noaej onjrtcets. Two
of the mjor in«tnwrat* of natlrmal !if>notaiT potts^i the dtoernat rate
and r**«rwe rf»milresomto, ^re lOreadar tHhler the jurisdiction of the Besorwo Board* this b i l l mmVr pto-wn
to *wmm the sane octree with
rospoet to the t Ird lnatrwwint—<r eii mrVot
I*.
M s Motion c n U l a i alt* a
of %bm aUe * U h «•
nhould ffoicU th* qr«t*n in Ite
operation* and In the othor
if ita *«imal wmmfacrf lollop.
«r« i t nothing
of
i s l i a s •kvtMMais l*ut t t d/wt jwlunror to tt&a a forml
•vol^Ulon of lha ppgffilMi of aoiwt J ^ omi%ro\ ^lie
la tho li&tt liwirty T u n *
IQMMI
Itot original r»et m
ualnly as an ^f«0CQr of adoowoOation to
irun
aid indaotry aaA of c^yaorl ana py«W«tloa to Ibo tanks. It
M Ml i W V >• MMMlMV iu-: (.y MttHT t-r^i of
T
ury o c t r o i .
Jurliv? tlw mr y«oom the teak of the nm m^Um mm
• rcrily that of miatainfcv: th» «ar»tl»» nNdi fr*r c ^ l l t aMQMdfttioa.
Sot toetnalj|& with fehd ^oom & * «#-.w«rii^a of 1919-1971
«d
iftBr»asii^l7 «lnoa ttiat tint, i t AIMI IWW— aafMrnlir ra^ogai—d that
«s%, MA tlio -Id rmd
•
j^sn» fornalA of "q»xwnodat
ooetusroe aad indoatfy1* has talMn on a bro^darr
as a mbntitu
• I t «tabl
f 4rVaiot'
j - a c t i ^ eaa b» obtainad tgr noattoiy ae
MQoludo t"-;lc statiMMat
1 abtr.1
I t ha*
'i«BW>c
t-3 HU
-rm c r i t i c s that tho
\m to d#«tamy the r«(f^Lo!m
.ctor of the ^
It lato a o t a t r a l l s e d ay-nton *--.loh v l l t fct - itloally d
t;, I want t o «aar t»
-
l#
aal: | | | I
•
fill
If this It not tho 0*00, tkoro i t no potat in faorUs a I W M
3«o«d* The lntontin of the pyooont b i l l Is to atartftr I n n f ^ r lnportaat
roepoets tho dlcitlnotloa b<*two#n th* r e g n a l and the national ar?oett
of *od*rol Ho»orvo ormnltaMcm t n l ftfnlnlo1
In the il^fct of twontgr
t
poos* of onorlono*.
7ft* ooe»od tJvlnrr tl^vt t nmt t« f i ^ Is tlia
the Torl^nal ohasnotorlotled of tho nyatora.
1 M i l door
In a-^ie Irt^rtant r«
h« wrl^Twil autumwu of tho Hoeflrv* bat; ;«
?Mer this M i l th® 9lo»>& will
*oct9r«
t
It
t
*80^Tt bjvHi?, l?io*\iil«u tho
hro* dlrwstowi of om3h Fe
ohalroan.
istn
: at the nott tw? And
r«Q«nt
*r% 'VTffnt 1« r^^oiiod to *
tho ?o^a«dffl V9TTB- *ntatlr» at t i n !Ro«*rT* b?tfiJr, and to rvilataln an off loo
of tfeo Kosorv* Board on tho
r^nlco* of tho n*o*r+* aai5i«
Hot oalr 1^ l»
dlrftcfcly aptioiitod by th« ^ \ r 4 , out hla oitl^s itaff
fitT.tlotlen"". -oaid. tfti© oxsKsdnlnr oonrlc»«» nro ribj^r
BOfti^
^flO «WBC^ w i t h I n t h
floynrtaont
• ->tit b i l l .
1« ab i^ho-l, ^nd l%« f t m e t l T a o m ^
undor tho Boooxfe be«fi\es thon»«lTOO* ''I'^
r ^•T^yoaontfi fo
1
••i?
IH«I
rtly
?oft fJbt*,n-»3 a
At and ?odr-
z^ral
dl3omti'm and asot
«t4ov
;
itltttlo «»J kMPOOjtol
with tlM amber baniko.
Ao ror^n
POO
n
tho timminwi of
oatlr.»V to thr
'ivo
- tolbS i t
he no
iy *h«
banko*
It in t:rx
HOOOITO
• i.
^«ia»nt al«or
gra-
MM rMi2t» bank* | a local
to a 1 ^
mufti
| •
ion of «!nt ',
d«CL of o^ttfta I
•:
>ntmtc of tha Xo* , nanelr, Mm
li'4i dltorotlon nod autojwoo
np# I t
.
iUaal
?.t "bill 'jrovldBs «n& a /*r«b.t
if tfreutih*- r^>y
e« s&v %o
tfurtfy
- wro aai ftvpoastMi Hi**
r
- ex/, and *»lso tlfeB
3 batte* Vut thero i s n o t h i ^ In t h i s V.
TTB»nt OT«T tSw» S
f tho
ttui
^cuaoed; Vat wlT*» refarmw to 13
r Itt
that on ths
^ri«x«Mit lie
b«e ec-nrnl, or hot daaptd
HM ^Hlabe© of the Chiaf "75ooutl^>»
I wiflh la
^aar from
I -r"/«n£5.»nc« of jttd&*nt of tha PoiweiTo Board, th*
M i l oe#lta t
incre-ir
i«i*Qrnhlpt 1
"cal, noi^>olltl«al q^allfl"
-4/?h«r sal&rlej*, l>y ^roridioe
wen ivtirf«i«nt. and by pmrld)
' %h» Baaapd9* ^aldjtaot in
poTlcor & ttaton^nt ^f ttlat, noi
,
f
i t«iwi of th» 9p»elal interest of angr
it in torn* of #orm<Mlo oiabi 1
lb«ra
leal ^r ftmml
r
' '
I
•
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)
•
•
I
In
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• ,
l
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of England, w!_ich i s coaaBon^
.
.
H i n
.
.
.
s the ex
ii«l«owes
. • ..
11
Ln —
8/ot«B« T
•
.:«»«• tt «»• intfnd#d b-/ the ftnyi li the
ted V the words of Preside;
•ecs to the Joint uenr
Congress on June
, • o in hie
, 1 U | s» idt "The
control of the qysteci of banking rnd of iseut •••• M U
the
•-' wmm% liaelff so ihet the benkii K«y be the i
veeted in
I
the &A8ter»v of business and of iivUvidufi enterixrise «nd initt-tire#"
.Ing
.
•', UM HtcerT* iFyste •
"<
-"
LLti •
t r o l b;
v TJWnt|
' ) be aubjrcti*<J
"nation iff M a i >ui t l o
•••-.•
r.
•
Lf« • »
^•rtnlaly
-
i t ia? rtc t>
. :>n«
-:
t bill U
Tenue for Ihia
f influence.
,
©teace and IDCTAIIM t
I R#is»nrc Bor^rd*
UMX1%|
Kot ocQ^ s
^
v
imm bo
>«
^ *er -ienso, but, i l
fro
.
.
' fr«M
i whon«Ter ther«
between
I n o o e s s i t i c s or ox;>edt
. Pi
I
•: '
ee »ny diY«r;
otw««n tht t
I
•oiler
. ;
•
,
th«
Litlc I L
ftrttd
•
reatc In i.'-r^c-
'
L « rjci r
•rn MKltloa*d i k l l |
:
v*
r
Btiowi re
n the deTclo-'«s^nt i
HMlMH v.
•
, i l V6
pit)
,
. i.-t ruse.
tvre.it
tr ubled
9f th*
'
•
'
' it^ I
f
is
-meerln ; of the a*i
Lloy^r ic.lr
Bf '
I
^jaseiit tt4
LfltflM
t
itr-l
ikiatg »y«teis In '.'
atitrket of ;
'©"ccts of M
-«•
ffkl
'•
r#eiifjr ,:>»• of th««c -Is^ecte in the
Ul w btlli*
intoreist ov thf
-
ritw f i l l be *ble \
-tively
@FedFRASER