The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1914-03-15
NEW SYSTEM AT HAND.

II Is probable that by the first OF next
month the boundaries Of the reserve
zones will have been defined, the re-
gional banks located and tho members
Of the board that Is to inaugurate the
new banking system be named. The
number Of regional banks to be estab-
lished Is still matter Of doubt There
is less interest in this phase Of the SIT
uation, however, than the personnel Of
the board.
It is realized that the men who are
to practically control the banks of the
country and regulate the ebb and flow
of the currency must have profound
knowledge Of existing conditions aa
we'll as clear insight as to what is
proposed by the new law. No doubt
firSt-class men will be named, but just
now there is absorbing interest in their
selection. In banking and financial
circles it is realized that the chairman
Of the board will occupy one Of the
most important positions within the
gift of President Wilson. The man who
performs the multifarious duties Of this
Office we'll and faithfully will be en-
titled to the consideration Of his fellow
citizens.
It seems TO be the general impress
sion that the new currency law is going
to fulfill expectations to considerable
extent. The opinion is unanimous that
it is an improvement upon the old sys-
tenn. Nevertheless the change will not
be accomplished without some misgiv-
ings as to the success Of certain fea-
lures. Only actual experience will set
et rest these doubts, if they may be
called such
The state banks sre not rushing into
the new system for the very best Of rea-
sons. In some Of the states they are
prevented by law from buying stock In
other financial institutions and cannot
join until these laws are repealed. But
even where the laws do not interfere
there is no disposition on the part Of
the owners Of state banks to become a
part Of the system until they are abso-
lutely assured Of the SUCCESS Of the
plan,
From the best figures obtainable the
reserve association Will include from
$4,000 to $4,000 institutions, including
tho $500 national banks which had no
choice In the matter, 1t is known that
therc are 5000 state banks with a capi-
tai below tho required maximum and
there has been somo guessing as TO the
fate Of these institutions. Tho opinion
Of the New York Einancier follows:
"Whnt viii become Of those small
banks9 Tho best Judgment is that the
new reserve nst will not affect them ut
all, for they havs been brought into
being by the Immediate although small
requirements Of the communities thoy
servo, and they nre beyond competition
In the transaction OF their ordinary
business, They have no reason to fear
the operation Of tho law. On tho con-
trary, its tendency toward Hquifyinr ns-
sets will make 1t easier for them 20
conduct business, The ono thing which
they may regard with some apprehen-
sion is the possible enactment Of the
law establishing rural credit banks,
Even these institutions could never take
the place which the small country bank
holds in its own community
AS the above may be regarded al an
expert view it would seem that tho lit
tie country banks instead Of being put
out Of business will actually flourish un-