The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-10
Now for the Federal Reserve Banks.

Now for the Federal Reserve Banks.
An early addition to the country's
equipment for turning the evil Of the
European war to good Is promised In
the completion Of the Federal Reserve
Board Pressure of circumstances
crushed the mean political opposition
which had been preventing conflrma-
ton Of the remaining appointments
and Saturday the Senate approved the
nominations Of PAUL NJ. WARBUBa and
FREDERIC A. DELANo. thus clearing the
way for a speedy Inauguration Of the
new Federal Reserve system.
Our readers do not need TO be told
what THE SUS's. opinion IS Of the IN
Reserve Board. We have made Il sui.
fictently plain that his knowledge of
the credit and currency systems from
which the new American banking or
nized mastery of the science and art
Of. banking would have rendered his
services invaluable at any time in
putting the new financial machinery
IN operation. At present, with the
strain which has been thrown on the
worlds financial structure by the Eu-
ropean war. Mr.. WARBURo's knowledge
OF world finance Is Indispensable.
There remains now the work of I'm
fishing at once the organization of the
new system, but even before that IL
Effected the Federal Reserve Board is
likely 10 find itself performing the
functions Of a committee OF public
safety In the exigencies which the Eu-
ropean war has created. There are on
the board the two principal fiscal Off
GERS Of the Government and their Official
prestige together with the prestige
which the board already has IN advance
OF the power that It is going TO exer-
else, plus the prestige Of Mr.. WAR.
BURG's membership, will cause the
country TO look 10 it for leadership in
the solution of the great problem which
Confronts civilization.
Only the United States, with its vas
resources, can take the initiative IN
bringing order out of the economic
chaos into which the world has been
thrown by the catastrophe conflict IN
Europe. The problem which has TO be
solved is 70 contiive those financial re.
adjustments and make those financial
prov sions which will assist foreign and
81. 10 . A.
their customary channels and allow
the free exchange OF credits and thc
offset of debts which arise from the
commercial movement. The Federal
lions chance to earn both distinction
and gratitude such as has "a rely come
20 any public body.
Doubtless the first important action
Of the board will be to appoint the
class q directors Of the Federal Re
serve banks, and when that is done
steps can be Immediately taken to SCI
ND the reserve banks at the principa
centres, presumably beginning with
the New York bank, which will conduct
.ts business at the financial centre OF
the whole country. Incidentally there
will soon be further easing of th'
reads 1t seems to be capable Of such q
construction that the national bank re
serve requirements throughout the LAND
will be lowered to the new percentage,
81 f1a hay Ia 4.
ready to begin operations.
That attention should be concen
trated primarily on the establishment
of the New York reserve bank woulC
seem obvious 1t Is here that tn,
American market for foreign exchang,
Is concentrated, and II Is New Yorl
which affords the chief port for tn,
country's foreign commerce. With tn,
aid of the New York reserve bank tn,
protection Of the country's gold suppl!
can be better insured and the banl
ran help tremendously in the efforts Il
teSume the balancing of international
debts and credits which Is called for
0gn exchange and by which the inter
national movement Of goods and com
modities in large volume Is made posi-
able. Under the Federal Reserve ac
the reserve banks have an almost IN
limited field Of activity IN foreign ey
change transactions
II Ia An interesting development tina
at this Juncture such a departur