The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-12-06
NO MORE PANIC
HAML|N SAYS
It s ANTIQUE
GOVERNOR OF FEDERAL RESERVE
BOARD DECLARES RESERVE
SYSTEM HAS DONE AWAY WITH
BANKING DiSTRUST.

New York, Dec. 5,-Panic, due to
distrust of banks, has been relegated
to the museum of antiquities by the
new reserve banking system, in the
opinion of c. S. Hamlin, governor of
the federal reserve Board, who spoke
today before the New York Chamber
of Commerce.
"The federal reserve system will
relegate to its proper place, the mu-
scum of antiquities, the panic general
ed by distrust in our banking system,
leading to struggle of self-preserva-
tion between bank and bank, and indi-
vidual and individual, and ultimate
boarding by the people" Mr.. Hamlin
asserted. Such boarding usually fol-
lows boarding by the banks, and does
not precede it, II boarding by banks
should cease, boarding by individuals
never would occur; and both, believe,
will be relegated to obscurity under
the federal reserve system"
Mr. Hamlin did not think that all
panics would be done away with, of
necessity, by the new system.
"If future business expands unduly
under the spirit of speculation, the day
of reckoning will come as surely as 1t
has in the past" he said Undue ex-
pansion will correct itself believe,
however, that the federal reserve bank
ing system will check undue expansion
materially.
Speculation Still Arbitrary.
"It is a fact, however that even un-
der the federal reserve system the
banks still have it in their power TO
permit il not to encourage undue
speculative activity; and If they do
this, the inevitable result-commercial
stringency-- must follow. When, how
ever, the state banks and trust com
panies of the United States join the
federal reserve system Il hope in the
near future) even that possibility will
be mlnlmlZed greatly
Much speculation exists as to the
authorship of the federal reserve act.
can further say that beyond those
primarily responsible for its provisions
Mr.. Glass of the House, Senator Ow-
en- and others OF the senate, and the
secretary of the treasury-there looms
up one figure more entitled to the cred
its for its provisions than any of the
Wilson"
Samuel Rea, president of the Penn
sylvania Railroad, asserted that in the
last year the eastern railroads earned
less than per cent on the money in
vested
This serious conditions is not new,
but it now is acute" he said. I'VE have
been living on hope at least since 1910
when the downward trend was clearly
Indicated how much longer we can
exist on that precarious asset will not
venture to say.
Increased traffic will not cure the
railroad malady, for up to the present
their economies and improvement in
efficiency have beeen Offset by in
creased costs, wages and taxes. These
companies need not only the very mod
crate increase in rates for which they
petitioned but all the revenue that can
be secured by working out the means
suggested by the commission for in
creasing revenue"
Commission Overburdened.
"One trouble said Mr.. Rea, "is that
the Interstate commerce commission
has been overburdened with respon-
sibilities many of which must be de-
puted to subordinates, so that in many
instances direct consideration by the
entire commission is impossible.
"As the result of the new laws, the
scope of its control has been largely
extended 1t could assist railroad de-
velopment materially, but so far it
has proved impossible for seven men
in one center to act not merely as
regulators, but as administrators OF
the railroads, leaving financial results
and responsibility of that administra-
tion to be borne by the companies