Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-08-22
NEPBQRN 0PPlSES


"Why then should not the principic.
onco rocognised, be correctly appiedg
why should MOI the law create ono
central hank. which should have
branches wherever there u commcr-
clai need for themY Such plan
would be simpier less cutnberserne.
and more certain ~ operation and
for more efficient There would thpn
be no need 10 give tho federal reserve
board authority 10 direct one section
o. tho country 70 loan money % an
other for the central authority would
then control an the deposits and all
the leans ana they would make loans
% those sections Of the country whore
most needed
'As matters stand today, whenever
alrlngcncy IN the money market cx-
ists our twenty-five thousand hanks
begin Sompetins with each ether 20
strengthen their cash reserve. In
doing 10 they Intensity the siringency
and agRravatc the trouble. The dis
position OF bank managers 10
strengthen their individual institution
ls natural ana inevitable. IN viewing
the proposed legislation. one of tho
most natural questions then r. wheth-
er the establishment % these reEionqi
reserve banks viii remedy or argra-
vate that condition. VIII there not
naturally be competition between the
regional reserve banks, competition
between the twelve sections 81 tho
country ana may we not IN the ond
have competition Tor cash holdings
between individual hanks added To
the competition OF section against see
ton. reserve bank pEainst reserve
bank The trainers 81 inc measure
evidently recognise that danger ana
seek to paIliate IL by giving to the
federal reserve hoard the authority
10 force one reserve bank "a loan 20
another. Under the conditions tha'
/ would exist. would not the exercise
az that authority fail 20 accomplish
I the ujst distribution 81 funds. IL there
not n strong probability that IN oNer-
cislnR that authority factors would Ne
created that would endangcr the
i smooth working and pcrmancnce OF
the whole plan.
/ with n single central reserve bank,
4 ysith branches reserve money OF al
the bnnks deposited with That ccntraf
institution. would count IN the ugrre-
rate. no matter with which hank Y
was deposited or through which
branch n was loaned with such q
single central bank. the controlling
beard would place COS reserve in the
section of the country whore most
needed This shifting of funds would
be accomplished without osteniation
ana without notoriety, whereas, X
| federnl hoard should require. as u
might Do, under this proposed law,
one central reserve hank 20 loan mon
ev 10 another federal reserve bank.
that could not be done without at
tracting attention 90 tho borrowing
,ncnlity in way that would operate
"a the prejudice Of that locality"
Mr.. Hepburn pointed out ~ some
length what he believes "a be the
danger at having the credit Of the
| government called IN question az some
future time by obiigatlng Il Ia the
proposcd note issues or the rcgionnl
reserve banks The hanks, ne said,
should be made solely responsible for
the notes. IL was his opinion thnt
these notes meant imitation. Ito
i pointed out that the limits placed on
tho business OF reserve banks would
Head to "a curtailmoni or credit II
was difficult. he said. Co see the al
vautsgos Of the proposed system ~
tho Inducements To banks TO go into
La Banks should not be- compelled 10
90 into IL against their Judgment, ne
said. and then called attention To- tho
monetary commission plan which per
mltted but ala not compel banks To
subscribe tn the central bank. MT.
Hepburn doubted the wisdom 81 pro-
vid,ng for land loans and savings de-
partments w the system
In reviewing the commenahie pro-
visions Of the bill. he said;
1T creates a central bank. Il es-
ltnblishcs branch banking. n rocog-
nlzes bank assets, IN tho form og com
merclal paper as the normal and
proper bNils for bank currency; n
provides for keeping the current funds
Of the United states IA current use.
instead of locking the surplus up IN
the sub-troasuries whenever the In
come exceeds expenditures. A. tho
present moment we have nm illJstra-
ton, since the secretary ~ the treas
urv ~ now putting back into the chan
nels Of trade money which the excess
nf taxation over expenditures has
Withdrawn from business.
"The secretary, too, acting strict
ly within the law, recognized bank oe-
sets as the property security Cor gov
1 crnmcnt deposits. Those 81 us who
have long contondod for central
hank and tho other principles we have
mentioned. may reioice that this
measure recognizes tho truth ~ these
principles and believes IN the ucces-
slty of their embodiment into law"
1 ~HHHs
Des Molnos, Iowa, Aug. 22.-Two-
year-oid trot. half mile purse s500
two IN three heats; Clovordale. won;