The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-16
auguration of banking activities under

auguration Of banking activities under
the new conditions, to tell Its subordi-
nate operatives what they can do are to
do and how to do It, and in general and
In brief to show what the new banking
law means, very much. although In far
more momentous fashion, as the Treas
ury Department has been showing In its
endless series Of interpretations what
the Income tax law means.
As the powers Of the Federal Reserve
Board are set forth or implied In the
Federal reserve net they tell only part
OF the story that the business commu-
nifty needs to hear b fore It can 20 con-
fidently ahead to achieve the Demo-
cratic prosperity which Is being pre-
dicted. How much Of the story remains
to he told IL inferential from study
Of the powers in question. A careful
enumeration recently made revealed
sixty seven distinct grants Of author
ity to the board in addition to those
especially conferred In the general fran
chlse contained in Section II and with
out taking account Of the implied pow
ers necessary to discharge the general
responsibilities Of the board.
BY rule and regulation, by construc-
ton and definition. the board has yet
to give effect and significance to prac-
tically every clause, paragraph and Sec
ton Of the law. These definitions and
rules are Of infinite consequence In
view Of the boards powers to do prac-
tically whatever It pleases with the
banking and currency system for which
Congress legislated only In outline.
The board can take the whole system
apart at any time as often as 1t likes
and reconstruct Il according to changed
circumstances or It's own altered no.
lions or personnel. 1t can shut OF
credit In one part Of the country and
turn II ON in another. 1t has authority
which Ia intended to enable II to regu-
late and control the volume Of currency
nd the ebb and flow through the cOun-
try Of that tide Of gold on which credit
depends as values are mea sured by
the modern world. 1t can close bank
or ruin n business. and can establish
la boycott against bank or blacklist a
business mans paper.
1t has been said more than once In
the last few months that the practical
workings OF the new system are to be
| in the hands Of the bankers Of the coun-
try. This Is true only to the extent
that banking will he conducted under
bylaws framed by the Federal Reserve
Board, which In the last analysis has
life and death power over business and
banking. 1t is not governmental body
out side Of the business organization
and watching II work: II constitutes
| the very vltals Of the organization.
Because OF this awful power II Is es-
srntial to the pursuance Of prosperity
that the country should know quickly
who are going to WELD II and how II
Is going to be exercised. The nomina.
ton OF JOHN SHELTON WILLIAMS for
the Federal Reserve Board as Comp
troller Of the Currency lends poignant
interest to the other appointments
which will follow. President WILSON
would assist the country. and therefore
his own Administration, by making all
reasonable haste in announcing further
nominations. lie certainly need not
wait on the reserve bank organization
committee. for while that committee Ia
busy the board could he occupying It.
self in obtaining II domicile AT Wash
ington, organizing it's own stan. con-
sidering the plan and scope Of the stag
gering undertaking which has been
committed to II, and promulgating at
least tentative definitions Of the new
financial statute. which must be mean
ingless in the absence OF construction
, by the only official body authorized to
construe 1t