The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-04-28
National News Association

NEW YORK, April 28.-Current de-
velopments continue to be of a rather
disappointing nature. Chief of these
are an unsatisfactory money market
and further signs of business reaction.
Some easing of the money market Is
anticipated from the latter develop
ment, and as bankers are pursuing a
much more conservative course and
are partially restricting credit, the out
look is for relatively easier rates at
least until the harvest season begins.
The return of funds from the interior
has been delayed somewhat by the dis
position of farmers to hold back crops,
1t being estimated that fully rs per
cent of the grain is still in farmers
hands. The present policy of bankers
however, is to conserve their resour-
ces and build up reserves, and this ere
long should result in improved condi-
tions. There is still some talk Of strin-
gency next autumn, but that contingent
cy will hardly receive serious consid'
Grafton at this time. Moreover, there
is reason to hope that real relief will
be found in the passing of a new bank,
ing and currency bill as soon as the
tariff is out of the way. The new Ad-
ministration is known to be in favor
of bill which has been drawn up by
the Benking and Currency Committee
and which has in view the establish
ment of reserve banks in certain dis.
paper and the purchase of bills of ex
change. A central board. it is under.
stood, is contemplated which shall con.
troll the various banks-this board to
fix rates of discount and to distribute
Government deposits. The reserves
now held in the reserve city banks
would be distributed among the re-
gional banks. The present national
bank currency would be retained but
gradually retired and new currency
issued in it's place by the regional
banks, based upon the general assets
CT those institutions. Provision for
gradual refunding of the per cent
bonds is anticipated and the imprudent
proposal of guaranteeing deposits has
been eliminated. These principal ideas
are understood to have met the appro
val of President Wilson and his Cabi
nett, and there is good reason for be
lieving that the bill will pass the
House during the special session OF
Congress and may be pushed through
the Senate next winter If no serious
disagreement develops regarding con
troll of the regional banks. The impor
lance of securing the passage of this
bill, which contains many exceller
features, cannot be too greatly empha
sized, particularly if we are to provide
against any possible, not to say proba
BILE, emergencies. The present Aldrich
Vreeland bill, which was purely an EN-
Urgency measure, expires in May, 1914
and there is no time to lose If a new
banking scheme is to be launched and
put into effect before that time. Oul
business men should keep up the pres
sure upon their representatives a.
Washington for early and adequate
action.
The signs of business reaction
| though not serious, are numerous, ant
are of course much aggravated by th&
pending changes in the tariff The
number and liabilities of failures are
increasing; Clearing House returns are
| reporting smaller gains than a veal
| ago; railroad earnings are also max
| ing less satisfactory comparisons, al
| though this is partly the effect of th<
recent floods in the interior. In Ger