Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1914-11-04
WHAT RESERVE BANKS CAN DO

The appointments made for the members OF the Federal Reserve
board and for the Regional bank ire excellent and bankers and bust
ness lei of all political views are grateful to the administration for
its action in this respect and its change of view in regard to New YORK
banks in particular and the whole banking fraternity in general
Granted that the Regional Reserve banks will open on the 10th dy
OF November, the business man says: what will they do for me?
1t will assist him in every actual business transaction which is O repre-
scented by money and in which merchandise OF som kind is a IN element.
His bank, il his credit is good, al accept paper from him when he
the seller and discount it; thus giving him the proceeds of the sale at
The bank, if it needs the funds, an rediscount this paper at the
Regional Reserve bank and the Regional Reserve bank a call o 4
Washington for additional circulating medium in order t meet the
business necessities OF the country.
This act is not intended Ito assist the man who is dealing in mort
cages, stocks or bonds 1t will do o however, to a certain extent
but a the bank cannot use such paper for redhcountng, the amount
that it can handle will always be limited.
Under the bank law still in force a larger reserve against its de-
posts is required of national banks. This amount is estimated in the
aggregate at some four o five hundred million dollars 20 than that
to be required under the lew law. A considerable proportion OF this
large sum will be available for loans, but because the law permits this
reserve decrease it should not be expected that the whole excess will
be used for the majority OF banks 0 n this coast for it is wise o keep
larger reserves than ire required by law.
In anticipation of the good effects of the new law, business in the
east is showing a marked improvement and our foreign exchange mar
ket is almost in a normal condition. The hearty cooperation of the
banks with the government is bearing good fruit and will DO more for
us in the next few months.
The government has been saved $4,000 in the cost of armor plate
for three new batleships as "a result of the stand taken by Secretary CT
plate manufacturers. Republican newspapers and orators have bsen
loud in their denuncahons OF Democratic Extravaganza because of d
small increase in appropriations made necessary by the Mexican and
European situations NJ te nornlou DEVELOPMENT OF TIT parcel post
What have they to sy as to the enormous development OF the parcel
economy? We pause for "a reply but W e shall not hold our breath
while W. ire waiting.
Vastly better from every standpoint than any attempt to regulate
cotton pro luction by law the stand taken by Southern bankers who
have associated themselves for the encouragement Of large cotton
acreage. Planters who will agree to plant only half as much cotton
next year as they had this year will be loaned money. This will be a
far more potent argument for diversihcation. of crops than paterna1
and probably unconstitutional legal enaetments could possibly be. IN
the long II both planters and bankers will benefit for in a single crop
disaster is the inevitable end, while diversity spells prosperity.
-OO-
The rumor that Germany's crown prince was killed in battle is
gaining ground. At first the report was supposed to be due to some
correspondents fertile imagination, but within the past ten days letters
have been received by different people from friends in Germany speak
ing of the funeral Of the crown prince"
gasoline and several of them are in hospitals in consequence Most
people who have never been college students would know better.
-oo-
Schtschutschyn has been captured. Probably it has, but it's safe
to say it won't figure much in the conversation when terms of peace ire
discussed.
When a fellow always picks lemons from the political plum tree,
il is difficult for him o refrain from becoming a reformer.
The losses Of all the armies in killed, wounded and missing arc
more than four million and not a king among the lot
2', -H g- --oo-
If Denmark had been hasty she might have got into the val. too
but since she fell for DR.. Cook she has been extremely cautious.