The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-07-05

After the lapse Of more than a week
the terms of the proposed new
and currency legislation were
made public, a somewhat unusual
situation exists. There have been
proposed in this country, on other oc-
casions, measures Of the sort which,
when introduced. instantly divided
the people of the United States ON
sectional lines. This was true of the
free silver-coinage bills.
Others have divided public opinion on
partisan lines. But in every such
previous instance of which we have
any recollection. excepting possibly
the Legal Tender Act of 1853, opin-
ion ranging itself for or against the
bill as a whole.
The real question at issue, on those
occasions, was whether any measure
of the kind was wanted. The present
situation is that the main underlying
purpose of the bill is almost unani-
mously approved; that a very great
part of it's detailed provisions is ac-
cepted by thinking men as sound and
workable; but that the same friendly
u Il NSAAN AtA%SA SAAN~N ~AAS 1890
of the measure as a whole would
be ruined by certain other proposals,
wholly incompatible in spirit, and pro-
badly also in actual operation, with
the rest.
There is a more or less prevalent
impression that the purpose at Wash
ington is to insist that the bill be en-
acted as 1t stands, and without ma
terial amendment. We do not find,
either in President Wilson's address
to congress or in the several explana-
tory statements given out in connec-
ton with the bill, any evidence Of
such Even Mr.. Bryan, in
his published comment of this morn
ing. admits thai whatever defects
it may have will be brought u by
discussion and cured by amendment"
We suspect that The Evening Post
and Mr.. Bryan might not find them
selves in accord as to what those
shortcomings are. But We certainly
believe that no measure introduced In
congress- in our time has more I'M
peratively needed careful and dispas-
sionate consideration on its merits, or
a more resolute determination, on the
part of public spirited legislators, to
remove whatever grave defects may
exist in it. We are not yet SO far
away from 1890 as to have forgotten
altogether the consequences, even OF a
political nature, which are invited by
a serious blunder in this particular
branch of legislation. In what we
have to say against any specific sec
ton or provision of the bill, we are
equally prompted by the wish that a
meritorious effort at legislation may
not be wrecked or completely dis
figured, and by the wish that a useful
administration may not risk the con-
sequences of experiments by its party
with unsound finance.
The regional reserve bank" plan
has met with general communication,
and, in our opinion, rightly SO. 1t has
been described as the application of
home rule in banking to the great
geographical divisions of the country.
That this authority would have to be
hedged about with proper restriction
and supervision under national aus
pices, no n has Yer doubted. But
to such supervision there are reason
able limits, and of them is such
Interference as would deprive the
regional reserve bank of its natural
powers and functions, and therefore
Of its usefulness, as the central in
stitution of its district.
The duty of di%scounting or redis.
counting paper infers the function Of
fixing the rate at which the capita
shall be loaned. lie the bill had con
templated a national reserve institu.
ton. to rediscount paper for the whole
United States-as the Aldrich pIar
proposed-it would have been TIL,
business of that institution to estab'
lish the rediscount rate for all part!
of the country. That plan the presen
bill ~repudiates, and with good enough
reason. But, after comforting on ta'
regional central banks the duties ans
responsibilities OF r~ediscounting com
mercial paper for the institutions II
their several constituencies, 1T forth,
with deprives them Of oil power o
i deciding what their discount rate shall
each week. a rate which shall b
mandatory upon each federal reserv
bank and for each class Of paper
We are unable to see, In that separa
tion of powers, anything short of alb
surdity. When to such Il stipulation
there lis added the provision that til
national board Ii to shave, the right t
determine or define the character =
the paper thus eligible for rediscount,
the principle Of regional independent
Is reduced to the merest shadow.
III ais If another home rule bill were I
confer ON an Irish parliament the pow
|, en- Of local Legislation, and weres the
to provide that all the bills propose
Land passed in that parliament shout
| originate at Westminster. and shoul
I not be changed.
j We can conceive 8of al system unde
) which, should the general interests x
! all the districts so require. fFe natior
/ oil board might recommend to III
&. giona1 bank al change in its oficii
&, rate. We can imagine that, unds
81 certain circumstances and with dr
change might he reallired--fhough Y