The Hawaiian gazette., 1913-12-26
CURRENCYLAW
WILL WORK
SLOWLY
Expected That II Will Take About
Three Months 10 Get New Mea.
sure Into Working Shape-Act
May Result in Changing Money
Center from New York to Wash
ington.
BY Ernest q. Walker

mail Special to The Advertiser.)
WASH NGTON, December 1l.-At
least two or three months will he need
ed to get the new currency law into
operation. The organization of those
regional reserve banks is not the work
of a day. This means period of some
hesitation aud confusion, but neverthe-
less, when the law has the President s
signature national banks throughout the
land can speedily figure out their par
ticular status. They can tell approx
mately how much they must prepare to
pay into the regional reserves. They
can make ready TO adjust themselves
TO the new conditions and ascertain ap.
proSimately what they stand to earn.
This should release funds in some meas
IRE and be to the profit of business en-
terprse.
President Wilson will be called upon
to select his federal reserve board.
That board will be most important to
the Organization. One hears much talk
about these members ranking in dignity
and power at Washington with justices
of the United States Supreme Court.
They will undoubtedly have large pow
er. The new currency system will be
Judged much by the kind of men Presi-
dent Wilson names. 1t goes without
saying he will seek the very best abil-
ity he can command. A more vital mat
ter, however, will be the way the board
works, when it has been organized. Ev-
cry national bank in the country will
be watching.
Washington Currency Center.
The new law, of course, will make
Washington a currency center, Just as
the interstate commerce commission
| made Washington n center in railroad
| administration interests. Presumably
| New York will lose some of its impor-
tance in that connection. New York
will likely lose control over large vol
umes of idle money that heretofore has
| been turned in there for use wherever
it could earn interest.
While President Wilson dominates
and the senate confirms members of the
federal board, there will be activity in
every section with Il regional bank i'll
! getting it started and its board of di-
Iettors selected. The local banks will
have more voice in that matter. Bank
ers VIII take a lively interest in this
regional organization. There, again, the
character of men who become regional
directors and the manner in which they
perform their duties for the first few
months will influence public sentiment
materially regarding efficiency of the
new currency law.
Burden III Currency Department.
The burden of administration will
fall much upon the treasury depart
ment, even as it was with the tariff
law and its income tax provisions. Du-
ties of the comptroller of the currency
are much affected. There is vacancy
in th1 Office President Wilson has been
waiting passage of the currency law be-
fore filling it.
Incidentally Washington Is becoming
a city of boards commissions and the
like. Somebody will call a halt, one of
these days, and tell how much boards
and commissions are costing. The Taft
administration brought two new fed
eral courts to Washington, the customs
appeals aud the commerce court, the
latter Of which is about to be disband
ed by the Democrats But an inter.
, state trade commission is in prospect
1t may be authorized by the present
Democratic congress. Interstate com
merce commissioners rate themselves as
almost as important as senators and OF
quite even rank with members of tn,
! cabinet. Thus it will be with other com
d missiOners.
4