The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-10-15
TO WILSON IS DUE

CONTINUED from First Fage>.
tirely to pleasure, the delegates and
their guests visiting jamestown Is
land and Newport News. The trip
down the river will be made on the
steamers ST John and Pocahontas,
and return will be by special train
over the Chesapeake and Ohio. to ar
rive at the Main street station at 1880
tomorrow night, In tine for the~spe-
cial train to Cincinnati and the spe-
cinls out Of Byrd-street station, which
will carry the bankers to their homes.
The boats will leave the Old Dominion
wharf promptly at o'clock.
Congressman Glass arrived in Rich
incnd from Washington shortly after
room yesterday. He was met at the
depot by local committee headed
by William T. Dabney and John Kerr
branch and escorted to the Common
! wealth club, where dinner was had.
He arrived at the Jeffers on audi
torium shortly before the afternoon
session was called and listened, with
ne bankers. 10 the address OF Gov
crner Ham'in When Mr.. Hamlin
had concluded his talk, in which the
working OF the federal reserve act
Was described and the prediction
f0HGe luat IeilEte udtC lOi tiAC oPIh-
ing OF the reserve banks will be made
shortly afte: conference TO be had
in Washington next Tuesday. Mr.
Glass was presented.
Glass Principal Speaker.
Congressman Glass. after stating
that he had been so busy for the last
! ten months exercising his wits in the
direction of keeping things from be-
ing done that he Is somewhat rusty
/ en- what has been accomplished.
promised 10 give some OF the side
lights on the enacting OF currency
/ legislation, in narrative form, and
proceeded to review the progress OF
currency legislation in the last fifty
Years which has led to the perfecfing
OF the present federal reserve system.
Holding before him a copy of the
federal reserve act, to which he rerer-
red from time to time during the
course of the address, Mr.. Glass took
up certain sections to whose provisions
objections have been made. and he
showed how those objections had been
overcome and how certain criticisms
had been shown unfounded and
answered.
To the work of the senate on the
! bill facetious references were made.
The speaker threw brakes onto popu-
/ lar superstition that the act came from
| the senate much improved, by showing
what the senate did to the house bill
and what it did not do, what the con-
! ferees struck out from the senate
measure and what was added to II.
! The federal reserve act was the work
! OF the house he pointed out. though
| IL is TO President Wilson that credit
must be given for it's splendid features.
| its sane provisions. The senator frdn
! Oklahoma cola borated and worked
with him before the bill went to the
senate. he declared. In reply to ques-
! ton coming from an Oklahoma bank
| err after the address was concluded, as
4 To the part the senator had in enacting
! the law.
The trouble with the American
! banking system has all along been, de-
clared Mr.. Glass, that it has been too
rigid. There has been no elasticity,
such as the federal reserve act pro-
vides. and the bankers have been con-
Quoting their business In straight
Jacket. Their achievements have been
in spite of, instead Of because OF the
nationa, bank law. There have been
| two serious defects in the national
! bank law, he pointed out, the in
elasticity of currency and the fictitious
nature Of the national reserve sys-
TEN.
Creates Elastic Currency.
THE efforts" he said, I'm producing
the new currency legislation have been
to find a way to correct these two err
rors. and we think, with confidence,
that the federal reserve act mas cor
rected them"
He told OF how the national banking
system had resulted In withdrawing
the reserve funds ffom the country
banks and having them centralized In
the great money centers. whose banks.
in order to realize on the money, used
it in the maeltrom OF Wall Street spec
uIation. instead Of aiding the rest OF
the country. This concentration OF
money" he declared. has created
nearly every panic we have had.
Business necessities and industrial
requirements may be met by distribu-
ton by a system OF regional reserve
banks, twelve OF which are under pro-
cess Of organization under the act.
The national banks must subscribe
to the stock Of the regional reserve
banks and become member banks IN
the several districts; State banks ana
trust companies may become mem
bers, being permitted to subscribe, re
said The federal reserve board has
complete power OF examination and
supervision. but 1t does not interfere,
in the slightest degree. with banking
methods 1t Is altruistic In its pur
pose, being for the benefit Of Me
banks and all the people OF the coun-
try. Mr.. Glass also told OF the duties
and powers Of the advisory board.
He described the almost unlimited
power of rediscounting given to the
regional reserve banks and showed
that under the provisions Of the law
the smaller individual banks have
the same opportunities as the larger.
THE bank with 100000 capital, when
short time commercial paper Is at
hand, he explained, may secure as
much assistance as the bank with q
million.
| "The federal reserve act" Mr..
Glass insisted. puts US on a CONNER
cial basis Of currency, 1t gives Us an
| improved bank examination system
and permits loans on real estate ~
national banks. and authorizes banks
with capital Of as much as ono million
to establish branch banks tn foreign
1 countries.
Answers An Objection.
THE objection was made" he re.
lated that only member banks
should name the directors OF the
regional reserve banks. But It has
been shown that these banks are not
alone for the benefit Of the banks. bct
for the benefit of all the people and
that the United States. the people,
. - - - ~ 49,