The Penn's Grove record., 1913-12-26
The New Blank Law


bank and currency law by the present
Congress is the greatest achievement
in financial legislation in so years. In
historical Importance this act will rank
with Alexander Hamilton's creation of
our first Federal bank, with the estab-
lishment OF the second United States
bank, with the foundation of our pres
ent national bunk system during the
Civil War and above the resumption of
specie payments "a generation ago.
The new law marks a distinct epoch
in American banking, as radical as
NapQleon's founding Of the present
great Bank of France OF the establish
ment under Bisiffarck's watchful eye of
the Reichsbank OF GeIfaay. 1t changes
the entire procedure Of Banking; it
creates Il new system Of currency, a1d1t
puts United States abreast of other
enlightened nations Of the globe in hav-
ing l. centralized, federated bank,
since the regional reserve institution
are merely to be so many fingers of one
hand.
In his broad scope, the new bank law
seeks to equallZe interest rates through
out the United States 1t also ell.
deavors to prevent forever any recul-
renee of the uncivilized spasms in
money, when in Wall street interest
rates have mounted above 100 per cent.
The new act will put the business
assets of this country into a more fluid
form and will enable trade to capitalize
not only its name but it's actual routine
transactions. 1t will make it easier for
owners of real estate to negotiate
loans.
1t sounds the death knell of such
financial p ,nics as 1907, but of course
No bank law can prevent a business OF
tlade depression. 1t will insure all
business in future against the hazards
of a quick and destructive money strIn
gency.
The Glass-Owen bill will give the
country more currency when business
requires it, and will tax this surplus
into retirement after the exigency that
called it forth has passed away. For
tunately for the safety aud honor Of
this country, the new law holds us
firmly to a gold standard.
There is provid d a substantial re-
serve for the protection of the paper
money which will he issued in great
volume. DepOsitors who are believers
in bank insurance have the further sat
isfaction that such an insurance fund is
to he credited, but If its ultimate wis
dom only time can tell.
The overshadOwing feature of the
new law is the creation of a board of
six men at Washington in direct con-
troll of 1900 national banks and direct
control of more than 1900 trust cOnl-
panieS and State banks. Upon the in.
tegrity and wisdom of that board will
depend i'll large measure the final sue.
cess OF failure of the whole system.
That board will be the all-poWerful
master of the regional reserve banks
and Il order any Il TO lend its funds
to any or every other. It's authority
is absolute, but no greater thru that Of
the Government bauk boards in Europe
where e n0n- partisan and non politica
regime is always maintained.
The Public Ledger has from the in.
PRODUCTION of the bill in the House
criticised obnoxious portions of the
original draft, but i'll the crucible of the
Senate nearly all the dross has been
burned away and now a it emerges il
seems, taken as an entirety. to be d
broad gauge, workable measure Whicl
the nation may accept with confidence
and commend
All banks should come into the new
system heartily II give 1t a thorough
test. While The prestige If individual
bankers may suffer under the Federal
power, there is still a patriotic wolk to
be performed 10y them.
Since the whole country has for years
demanded d new law, President Will
sons Administration, in giving such a
law after a brief space of a few months,
has won an emphatic triumph, and, let
us hope, conferred a lasting benefit
upon this republic.
AS a purely legislative victory fof9e
President, the bank act has few rar-
allels in our recent history. If the law
shall work as its friends have predicted.
history will accord him due credit for
his aXt raOrdinarV aphievamnnt