Representative Louis T. McFadden,
republican of Pennsylvania, is chair
man of the committee. With him In
the present inquiry, which will be
continued tomorrow, are Representa
tives Strong, republican, Kansas;
Wingo, Arkansas, and Steagall, Ala
bama, democrats.
The joint committee is composed of
members of the banking and cur
rency committees of the Senate and
House, and is constituted to report
on the reasons which restrain eligible
banks and trust companies from af
filiating with the federal reserve sys
tem.
O O O
Recommend Legislative Changes.
The inquiry Is also to determine
the effect of the present limited fed
eral reserve membership upon finan
cial conditions In agricultural sec
tions of the country, and to recom
mend administrative and legislative
changes calculated to bring about in
creased membership in the federal
group.
Members of the committee indi
cated following today's hearing that
many bankers throughout the coun
try are not familiar with the federal
reserve law, or the practical results
of operation.
Other testimony, it was fovnd,
demonstrated a somewhat general
lack of knowledge among the coun
trv bankers as to the benefits of the
federal reserve banking as against
correspondent-affiliation with a large
metropolitan bank at generally more
costly rates. Several members of the
congressional committee indicate
that first among the recommenda
tions for legislative action will be
lone aiming to familiarize all bank
I ers with the practical workins-out
of the federal reserve system.
