Bisbee daily review., 1914-11-15
NEW ERA IN BANKING

After months of preparation and organization GoV- ernor Charles Hamin head of the Federal Reserve Board awaits actual beginning of the banking system on Monday. Secretary MsAdoo, Governor Ham lin and all the other members Of the Board opti mistc in regard to the outlook, believe that the change from the operation under the old national bank law to the new law will be made with little friction.
 If he operation of the banking system meets with the success that its framers predict in finance will begin on Monday In large and broad sense the new law is as much the law of the mer- chant the manufacturer industrial worker and the plain citizen as it is the law of the banker. The best proof of his is that when the banks begin oper atons next week. the enormous os s5OOOOOoOO will be releases for the business of the country
 One of the most important purposes which the draft CTS of the law had in mind the limitation of the power alleged to have been held by small group of bankers through the system of alleged intoxicating drectorates It was charged that this money power had concentrated into its hands of the resources and of the banking credits of the United States to the end that it might reap profits and weld authority which were unreasonable
 There is not to be under the law general distribution the money of the country-the purpose of the new law is to make banking easier and safer develop and extend commercial credits, prevent the congestion of the currency in one more cen tres to permit the banks to use their resources fin their own interest the benefit Of the communi- ties and sections they immediately to strengthen The system by conserving the of all for the benefit of each to make business national in fact and not sectional or municipal to concentrate in a central board the direction the finances of the coun try that business pauics will be possible unless indeed. the bottom should fall out of everything
 Under the new system. as under the old, there will be wheels within wheels Federal Reserve Board, the hub of the systeu Federal Reserve Banks with many members: Federal Reserve districts, each under tho direction of Fede-l bank and all directly under the government of the Federal Reserve Board The Fedora Reserve notes are dessned to give elasticity to currency not possible under the old law sufficient to meet busi ness emergencies the expansion and contraction of tho currency being regulated and controlled in accordance with business necessities.
 The passing national banking system was in fact not a system at al The banks simply organized and operated under general statue. There were n fixed relationships between the banks or between tn banks and the government time of panic. the weak est went down, without any help or hope from tn strongest An that good in the old system Ina been retained in the new Federal Reserve system, an m additions it is provided that the weak will have th help of the strong in the common interest
 It was not the intention of President Wilson whe he urged ;he new system to put the Government int the banking business. The law which he fathered pr yides only the system by which the banking bushes shall be done The Federal Board to be selfgovernn and will be supported entirely by the member bank So important is the power yielded by the members the Federal board the approval of the President nominees caused extensive investigation to be mad by the senate and several bitter wrangles over tl candidates.
 The governor of the Federal Reserve Board, charl' S. Hamlm was formerly assistant secretary of the Urea ury He is trained lawyer has been lecturer al Ha ward on government and has represented the Unit States in international conferences abroad The oth members of the board prominent bankers and hna clors and were selected by President Wilson with gre 
 THE GREAT FRlEDMANN BUBBLE
 to oha ovor