The Bridgeport evening farmer., 1913-08-21

kings wanted to discipline the country they made money tight and hard times followed. When they were dis posed to have things boom, they loos- ened their purse strings and money was "easy.'''
 Under the WflsonzBFyan bill these potentates are dethroned. The coun- try is divided into twelve districts, or regions, and a. central bank is organ ized in each district Some of the. members, of Congress want the banks of each district to be stocl1hoIde CTS in each bank. and others want the. gov ernment to own the regional bank In either instance these big banks will be known as Regional Reserve banks and they care for that portion of the reserves of the little banks which used to be sent to New York Thus in stead of these reserves becoming con centrated in Wall street they are kept in the various regions where they are available for commercial, indus trial and agricultural purposes.
 A PANIC PREVENTER.
 The controlling power of the new system is the Federal Reserve Board which as stated before is named by the President, and therefore always answerable to the people. This board has very extensive powers. Perhaps the most important might be describ- ed as the Panic Preventer'' This is a simple but effective device. The Federal Reserve Board will have at it's disposal five hundred millions of currency. In times of stress when the Regional reserve banks are unable to take care of the situation, the Federal Reserve Board will release to the Regional Reserve. banks so much of this great reserve as may be needed. The Regional banks put up as security prime commercial paper to the full O "a 1n a7 third the amount of the loan in law ful money of the United States
 We never had a panic in the history of the country which could not have been squeIehed at it's inception by the proper distribution of one hundred million dollars. Take the hand made panic of 1907. All of the banks Of the West and South asked at that time was that the New York banks pay them what they owed them. But the New York banks. were frightened to death and would not release a dol lar.
 Under the Wilson-Bryan bill we could not have a repetition of that ex- perience. In the first place the coun- try banks would not have their money tied up in New York, and in addition they could get all of the currency they wanted by depositing securities in Washington with the Federal Reserve Board.
 FORBIDS CASHIERS CERTIFT-
 GATES
 With the overthrow of the money combine the cashiers certificate' all so disappears. You remember those bits of paper which took the place Of real money during the panic of 1907? You will see them no more, for under the Wilson Bryan bill banks must meet their obligation with coin of the Republic or close their doors
 Another feature of the bill which will eventually prove one of the most beneficial provisoons is what is known as the -'rediscount section.'' This en- ables the country banks to rediseount the paper of farmers and stock raisers with the Regional banks, and in the opinion of experts will have a strong tendency to not only make money much easier in the rural districts but to materially reduce the rate of in terest charged.
 When it was stated that the bill had about passed through the fiery fur mace" of the Dem ocratic caucus it was not using fancifuI figure of speech When the measure was first presented to the caucus it met with earnest opposition. After a. prolonged and ex- haustive debate the wisdom of the great statesmen who drafted the bill seems to have been amply vfndfcated, and there Is no doubt that the meas ure will go to the house back by a harmonious and confident majority.