The Birmingham age-herald., 1913-06-24
A Common Opinion

A Common Opinion
1t can be reported. however. today that
majority opinion here and that, too, a
very large majority, is highly favorable
to the position taken by President Viii
son. That the President should recom-
mend action by Congress SO that fiscal
legislation can be secured before the ses-
sion ends and that this recommendation
should be supplemented by very care
fully prepared bill is spoken of as rhe
longest and the best possible step yet
taken in the direction of complete read
justment of our banking and currency
system to modern financial and economic
conditions. There does appear to be some
slight regret that 1t should be thought
expedient or impera tive that the govern
ment at Washington should possess a
greater power over banking and currency
than bankers themselves would be able
under the proposed bill 20 possess. There
seems to be in this proposition an implied
reflection upon the capacity or assured
integrity of American bankers. The bill
by implication suggests that there would
be greater confidence in the adminstra-
ton of new banking and currency laws II
the absolute control is in the hands al
ways of the federal administration at
Washington This is sometimes spoken
of as politicians control which may o.
The federal reserve board which will
be the final authority is to be composed
of nine members, six of whom represent
the federal administration at Washington
for the President is to appoint three
members, two members of his cabinet and
the comptroller of the currency are to
be three more while the federal reserve
banks are to be represented by only three
members. There will always be a feel
ing that in making UP the federal reserve
board so that only one-third of it's mem
bers are practical bankers there may be
danger of mismana cement or. in response
to unreasonable popular clamor. danger.
Gus imitation of the currency.
Trifling Criticism
Yet in spite of this criticism-which ha
not been very strongly made, but only
incidentally mentioned-the feeling here
is general that it would be we'll worth
while If Congress were to adopt a mea.
sure based upon the bill which the Presi.
dent recommends. The men of finance OF
this city would rather see a law of this
character upon the statute books. al
though they may not regard It as perfect
than to be compelled to await patiently
perhaps for years, for an amended bank.
ing and currency law. A test of a law
of this kind would soon reveal ir1perfec-
tions or errors which some later Con.
crosses would correct.
How greatly legislation of this kind is
needed Is illustrated by the unprece
dented attitude in which the state OF
Tennessee finds itself. 1t looks almost
like technical bankruptcy, although the
resources of this state are magnificen-
and the business character of its citizen,
Is unsurpassed. Tennessee, however
finds herself in the same category a.
have many municipalities OF the United
States. They have been unable to sci
their bonds Millions have been offered
since the first of this year without findina
any market Under an adequate BANKING
and currency system there is not III,
slightest doubt that abundance of capita
would have been found ready to make in
vestment In municipal and state bonds
Much of the present stringency in th,
money market can be traced to the ar
chaic and rigid forms Of our banking ant
currency system,