Bisbee daily review., 1914-02-15
rIpINes FROM THE WEST.


 When Wall Street is blue is often advised to look to the West for fair weather signs Out of the West now comes the cheery circular frcm St Louis bank of misunderstanding the is all right for better times" The bad times behind. The country is sounder and stronger says the New York Tines for having prepared itself things therefore sin position to profit by the improvement in senti ment the perception that the strain has passed The President is curbng the wild horses in Congress the pend legislation contains some things that are desirable, and is being pruned what is undesirable When the antitrust bills disposed of politics will take back while the crops are growing
 The bank is hopeful regarding the Stock Ex- changes It thinks they are useful institutions and per. form service to the community marketing securities The bank thinks that the public becoming educated to their economic position and is unwilling to see their ac vites crippled beyond what necessary to correct their misconduct if any shall be proved. Finally flew people realize what genuine headway the country lis making through the practice of public private economies" It is necessary each American to save hundreds to convert bad times into good. The saving of few dollars apiece in the a year would provide bank for credit on a scale of multiples of millions.
 The supply of bank credit promises to equal every demand without pnching by anybody. According to the figures just published tho hold 27 per cent of per than the Federal requires The other cities hold 25 per and will be required to hold only IS per cent with smaller proportion than in cash The country banks hold nearly r per and will be quired to hold only l2 per cent also pro portion Of cash Precise statement impossible as the figures only for national banks there full knowledge of how many State banks and trust companies may affiliate with the system. More. over. there is variation in requirement reserves according to the nature of the deposits. It reck oned semiooally the basis the condition that the banks had s1s5 OOO the system would require The present statement adds s92.2S6.966 which would a superfuity of cash.
 But there offsets. The system requires large payments capital account. and there will be a great transfer of cash from the city to the country banks Al a time of such readiustmens common prudence requires all concerned liquid strong above accustomed standards It does follow that because reduction Is lawful great scale therefore it will be prudent Even at the present time there is ex for the country above the present larger percentage of required The surplus will no be unnecessary the requirement is reduced Or the contrary the reduced requirement will be somethn like apprehension minimum" that is total whicl when approached signals need for caution by borrower and lenders alike. Particularly will this be the cas- since the system depends for its benefits upon tn cred dting of rediscount market for species of com mehia document which does not exist except i mere specimen quantities.
 It should not forgotten that than the bankin system is be reorganzed The system of commercial payments be changed from the system of sales O open account and bank credits upon statement of bo rowers condition, payment in commercial avai able for rediscount The promised benefits are grea and 1t is hardly be doubted that 1t will be ayaied generally when available and understood. It is venture into promising country but the lay of the Ian is known only the travelled few. The bank reserve are ample enough promise the most favorable col dons for the experiment. but the first administrator may have ideas about earlier which difft from a simple calculation of percentages.