The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-06-26
mitted to the government at washing
A Common Opinion.

A Common Opinion.
1t can be reported. however, today
that the majority opinion here, and
that, too, a very large majority, is
highly favorable to the position taken
by President Wilson. That the presi-
dent should recommend action by con-
gress so that fiscal legislation can be
secured before the session ends and
that this recommendation should be
supplemented by a very carefully pre-
pared bill is spoken of as the longest
and the best possible step yet taken
in the direction of complete readjust-
ment of our banking and currency
system to modern financial and econo-
mic conditions.
There does appear to be some slight
regret that it should be thought ex-
pedient or imperative that the govern
ment at Washington should possess a
great power over banking and cur
rency than bankers themselves would
be able under the proposed bill to pos
sess.
There seems to be in this PROPOSE
ton 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 administration of new banking
and currency laws f+the absolute con-
troll is in the hands always of the
federal administration ataWashington.
This is sometimes spoken of as poll
tician's control, which may or may not
be wiser than bankers control.
The federal reserve board which will
be the final authority is to be com
posed 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 mem :
bers. There will always be a feeling
that in making up the federal reserve
board so that only one-kind of its
members are practical bankers there
may be danger of mismanagement or
clamor. dangerous imitation of the
currency.
Triflina Criticism.
Yet in spite of this criticism--which
has not been very strongly made, but
only incidentally mentioned-the feel
ing here is genera that 1t would be
well worth while If congress were tc
adopt a measure based upon the BIZ
which the president recommends. The
men OF finance of this city would
rather see a law of this character upor
the statute books, although they may
not regard 1t as perfect, than to be
compelled to await patiently, perhaps
for years, for an amended banking and
currency law. "a test of a law of this
kind would soon reveal imperfections
or errors which some later congresses
would correct.
How greatly legislation of this kind
is needed lis Illustrated by the UMPIRE
cedented attitude in which the state
of Tennessee finds itself, 1t looks al,
most like technical bankruptcy, al
though the OF this state are
magnificent and the business character
of it's citizens is unsurpassed. Tennes.
see, however, finds herself In the same
category as have many municipalities
of the United States. They have beer
unable to sell their bonds. Millions
have been offered since the first OF
this year without finding any market
Under an adequate banking and cur
rency system there is not the slight.
est doubt that abundance of capita.
would have been found ready to make
Investment In municipal and state
bonds.
Much of the present s~tringency III
the money market al be traced ic
the archaic and rigid forms of ou,
bankine currency system,