Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-12-29

terest rates or the cotton states can
even up with the manufacturing states.
| However, should the demand for
money become strong all over the
United States these regional reserve
banks operating branch offices in all
the money capitals Of Europe would be
able to locate idle capital and cheap
money If there were any of 1t any
where on earth and failing in this the
| United States government will issue
to any reserve bank national bank note
currency upon the deposit Of an equal
amount Of good commercial paper II
the regional bank can show in its re-
serve gold equal to forty per cent Of
the bank note currency thus obtained.
Thus the regional reserve banks forth
| fly themselves to take care of each and
every separate bank in the national
| banking system and thus does the little
bank in Marshalltown or in Podunk
have back of it's reserve the reserves
| of every other national bank in the
United States with a gigantic mutual
protective association organized TO
scour the regions of the earth for idle
| capital and a pass key to Uncle Sam
strong box if the situation should be-
come urgent.
| When history is written years hence
this national bank reserve association
will stand forth as the crowning
! achievement of the Wilson administra-
F.; ton casting the shadow of common
! placeness upon all other events Of its
time If big business ever tries to
manipulate the regional banks the fed
secretary of the treasury, comptroller
of the currency and five others ap-
pointed by the president and confirmed
| by the senate will be on the Job to
protect the public's rights. just as the
interstate commerce commission now
| looks after transportation rights and
| the supreme court looks after legal
rights. Thus the check and balance OF
| the two house system of government
in America obtains in fits new banking
system.
But where does this help the indi-
vidual citizen? Will it be any easier
for the average man to borrow money?
That depends upon the man. All COM
mercial paper to be recognized by any
reserve association must mature in
side of ninety days and the man on the
note must be good as the wheat. Not
only that but he must have given evil
dence that the money he borrowed was
for temporary use only. that it was
used to carry merchandise or the &C
counts Of merchandise purchases. live
stock. grain, or IN short that 1t was
invested in quickly convertible prop
erty and that 1t did not go into land,
buildings, factories or permanent
classes OF investment Factories which
today have thrown men out OF work
solely because they could not obtain
legitimate temporary loans with which
to carry their customers accounts VIII
keep on running and their men Will De
! employed. Farmers who use money for
| few months with which to feed cat
tie or store their grain need not pay
long rate of interest for their
privilege of squeezing the bank and
everybody else with their seasonaole
demands as the banks can get money
from home as 1t were. Merchants in
times of stress will not be compelled to
lose a years profits in forced liqu1-
dation Of stocks because the new sys-
tenn is designed to relieve times OF
stress" Everybody will be helped
some by a system which will do away
with bankers panics but the man VINO
borrows at the bank must have even
better credit than ever before because
banks will want TO keep their COM
mercial paper clean enough to be &C.
ceuted at the regional reserve bank II
! the occasion should ever demand IT.
There is nothing in the new law which
will help a man borrow any more
money from any one bank that past
prudence would Justify and nothing IN
II 10 help a man borrow who was not
entitled to the credit before.