Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-11-12
BANKER HIGHLY
PRAISES FEDERAL
RESERVE SYSTEM
Rudolph Diamant, of A. B.
Leach & Co., Names -Four
Benefits That Will Result.

n our ways VI which llt NtW T NNNiui
Reserve System may be expected to bene-
NJ Investment bankers throughout the
United States were outlined this after
noon by Rudolph Diamant. of the New
York firm OF a. Il. Leach & Co., before
the delegates to the third annual conven-
ton OF the Investment Bankers As
sociatlon OF America in session in the
Bellevue. Stratford Mr. Diamant also ad-
vocated strongly having all state banks
and trust companies come under the Fed
cral Reserve System.
In view OF the widespread speculation
among bankers OF all classes as to the
| probable effects OF the Reserve System
| 1t was said tho summary OF these, as
made by Mr.. Dlamant, was particularly
significant.
I'VE believe" he said, that the or
! ganization OF the Federal Reserve Sys-
tenn will rebound to the benefit of the In
| vestment bankers in the four following
ways
lit will have a tendency to stabilize
interest rates. so that we will not be
| called upon to face In our operations sud
den changes in the rates of interest
ANY loss OF customers OF loss Of pur-
| chasing power which the Federal re-
| serve system may bring to the investment
world will be more than replaced by
the general benefits to the entire cour-
| try resulting from broader and better
banking system that is going to be es-
tablished without fail.
1T will 20 Il long way toward elimlnat-
Ing serious credit disturbances, and II
will place thereby the legitimate opera
tions OF the commercial, industrial and
| agricultural community on n better ana
safer basis, less subject than heretofore
to disturbances caused by factors out
side of their respective spheres of actlv-
ity and OF their own making.
The foregoing will enable us TO recom-
mend to our customers with more con-
idence the securities Of our corpora
tions. For the danger OF many serious
obstacles in the way of the development
OF their business and OF the market posi-
tion of their securities will be consider
ably lessened, II not entirely eliminated
EFFECT ON METROPOLITAN BANKS.
All indications as to the probable effect
of the operations OF the reserve system
on the metropolitan banks. Mr.. Dlamant
affirmed. point to the fact that there will
be less reason for these banks TO hold
, bonds for permanent investment. The
chief reason for this he said, will be
because broader opportunity will be
| given for the use of the funds In ac'
l cepnnce and other papers with which
the commercial world will be financed.
Strong doubt as to the probability thai
the Federal reserve system will stoI
Wall street speculation was expressed
by Mr. Diamnnt although. as he said
: the trainers Of the law were most anxious
. in their endeaYOr to limit speculation
u Speaking in defense OF the system o.
= speculation. Mr.. Diamant declared "Fo
u !, life would fail and We would be worth
II less II we could not express our hopes
in some tangible way"
g 325OOOoOO0 POOL TALKED OF.
: The proposal this morning OF George 3
d Caldwell, OF Chicago. president OF tn
y association, that a $3.50 100000 pool b
formed in order to give support to tn
money market In the present strlngency
has caused no end OF discussion anon
the bankers, While members OF the NeN
" York Stock Exchange have been discus
l sing for some time the feasibility OF form
ing Il large money pool to open the Stoc
4 Exchange there the proposition advance
by Mr.. Caldwell was as new as 1t wa
startling.
l. He suggested that the pool be launche
n in connection with the opening OF tn
IN stock exchanges. that II be subscribed b
a bankers and investors from coast I
y, coast" and managed by i've or seven c
10 the ablest bankers selected from Ne
e. York, Boston. Chicago and Philadelphia
Id He also suggested that It be divided
Il. two parts, a stock pool and a bond poo
II The proposition OF forming a pool
give security to the market. Mr.. Caldwe
pointed out. Is not a new one since II
banks OF this country have formed a 800
O0),O0O sold pool to aid the foreign e.
change situation, and the Government hI
lent its support through the Federal r.
serve Board TO the formation Of a &i3S
100000 pool to relieve the cotton industl
M the South.
SEES PROSPERITY AHEAD.
Despite the European conflict and I
an attendant hardshIps upon American Il
-, dustry and finance, Mr.. Caldwell declare
~ we had much to be thankful for, al
qe the future held forth unusual promih
an Business, he declared. is now past q
m low ebb OF depression and will contin'
ar to grow brighter day by day.
Tho annual report OF Frederick
Fenton, of Chicago. secretary OF the ass
~ citation, given at this mornings sessio
,,.a showed a marked increase in the memoe
~ ship the last year. While there are aoo
he goo investment bankers In the Uhit
ne states less than 800 of them are elgit
&c fo~ membership by the rules OF the ass
,a,, eistIon or the number OF banke
~ siIgI,Ia 10 membership, more than nj
5s baXa joined the association the last 10
In years. Fifteen members retlIeu ~.
I'D business the last year peSauSS -
isd market conditions.
ley Folioyylng the report OF the secrets
uld and that OF c. T. Williams, OF Baitimr
treasurer of the association. the repo
ON OF The standing committees were reeeiv
ted Sir George Paish. OF London, Engia
To- who was scheduled 10 speak this att
OF noon on "'The English Moratorium
ltal failed TO arrive because OF an unfoFes'
'hle delay. He Is expected tomorrow he
OILS. ever. and win then be asked 10 sP'
'ere extemporaneously at the banquet In
IA evening.
'yn Following the addresses on the Feds
r.. reserve law, By Mr.. Dlamant, at the 1
OF sion this afternoon, the meeting
l. thrown open 10 general discussion
Lewis b. Franklin, vice president OF
Guaranty Trust Company, New YoFk
The business sessions today VIII el
"a with meeting Of the Board OF Coy
nors at $50 D. m. Tonight will be 81
over 20 a smoker and a vaudeville y
lced in the ballroom OF tine Belleyue-strau
500
i0s to CORONER HOLDS xARDAEAsTl