McKenna on the Need for Reorganization Loidon, Jan, 29, Re-establishment of the Bank of England on the samp rgerve basis as the Federal Reserve Hank in the United States or the Rofchsbank was! suggested by Mr, Reginald MeKenna, presiding at the annual meeting of the Midland Bank to-day.
Mr, McKenna. said if this were one "the Bank of England would have a reserve fcr higher than at Present and could work with much greater freedom of policy and offer manifest advantages to British trade, Contrasting the trade depression in Great Britain d-ring. the past six years as compared with the prosperity of America Mr. McKenna pointed cup that while the average total deposits the Federal Reserve Banks rose from £2,860,- (000,000 in 1922 to £3,761,000,000 in 1026 the total deposits in the 10 London clearing banks fell during} the same period from £1,783,000,000 to, £1,664,000,000.
'The total of bank cash was deter-minod almost entirely by the action of the Bank of England, which was. governed by a rigid system, He was of the opinion that' Avergence between the British and] Anmerican monetary policy since 1921 partly explained the differences in trading conditions Reuter,
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