The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-16

To-day the Federal reserve banks begin
operations and with the Inauguration OF
the new banking system there disappears
one argument for maintaining enterprise
In state of check Apprehension long
ago ended as to the likelihood Of unset
Ting disturbance TO accompany the transit
ton from the old banking system to the
new. and now bankers and business men
think only OF the increased equipment Of
financial facilities which the Federal re-
serve institutions will afford. The Federal
reserve act is not an unassailahle miracle
OF legislative accomplishment but In all
important respects the financial organiza-
ton which II provides Is tremendous
advance on anything We have ever known.
The personnel of the directora1s of the
various regional banks and the makeup
Of the Federal Reserve Board together
with the policies which have been outlined
by them demonstrate that the country's
modernized financial machinery will be
carefully and prudenty handled
In all probability there is no adequate
appreciation of what the new banking
factor means for the multiplication of
me country's economic strength. but there
Is warrant for asserting that especially
under the conditions which the war abroad
has created and will create we can. IL
the Federal reserve banks are AS wisely
administered as they promise to be. con-
vert the status OF the country from that
of "A debtor nation TO one OF a creditor
ma ton. 1t may seem far fetched to say
that there Is any chance In the near flu
ture for the United States 10 become an
exporter OF capital instead of an importer.
| hut IL Is difficult 10 form a just concep-
ton OF the extent TO which a scientifically
organized banking and currency system
scientifically managed will make the vast
resources OF American wealth unprocc-
dentedly available for economic uses. Pol
| tiles comes in here to corroborate assur-
ances along these lines, for the latest
tokens OF politics are that Government will
| have to get out OF the way OF business
| and give It clear road 10 progress.
To-day also the New York Cotton Ex-
| change reopens for business. Other cot
| ton exchanges here and abroad must
follow THE lead and a very material de-
psrtment OF economic endeavor will there
| upon get TO work again. The restoration
| OF the future market for cotton will heir
the South by providing method OF dis
| tributing the hug- accidental surplus OF
cotton over a prolonged period OF future
| delivery. Prices for the staple vii
strengthen and the general banking posi-
ton will be helped by the fact that cot
ton loans will promptly become liquid
| The cotton consuming trade All over the
world will be helped and our export trade
| movement will gain by an Increased ship
ment Of cotton. which will approach the
normal outgo.
With the setting up Of the new bank
| ing system and the resumption OF future
| trading in cotton the only important ma
chinery In the countrys economic equ!p-
| ment which will be at a standstill will h
tho stock Exchange 1t IL becoming a
| question more and more imperatively ask
| ing answer how much longer banking
and business interests can face the pros
pect OF a continued suspension Of the or
| Canized securities market.