The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-11-17
Men IN Position to Speak With Authority Take
Optimistic View of the Outlook and Speak
Most Hopefully About the Prospects
For Busy Times Ahead.
OPENING OF THE RESERVE BANK
SYSTEM MARKS A NEW ERA

forsooth his idea vas hat his local
pank held so much one lying with
in its vault labeled with his name and
marked to be kept until called for"
The farmer not in such close touch
with operations as such pos
slbly views the subject as impressed
by his immediate environment. One
VINO in August sold wheat at s1.25 a
bushel may feel tina. the old bank act
is just about the right thing and is
persuaded that it would be better to
let we'll enough alone, while his
brother farther South without any
real market for his cotton and hay-
ing maturing notes outstanding. NAV
conclude that he had any real
confidence in the older law and that
the Reserve Act guarantees that the
desert shall blossom as the rose.
That part of the public not sDeci-
neatly attached otherwise holds such
opinions as loyalty to views expressed
respectively by majority or minority
leaders in politics might suggest.
AS a matter of fact, it is likely to be
proved that all are in error, and fur
normal conditions, that the transition
from the old to the new will result
neither In disaster nor in making a
heaven Of this earth OF ours.
On NJ country, it probably will be
found that certainly as the public I'M
medlately concerned and in somewhat
lesser degree the banks are affected.
the mango will hardly be felt at the
time OF its happening. When. how
ever, the Reserve Banks are in com
pete operation, the benefcent proy1s-
IONS or the act should give new life TO
business heretofore always conducted
with that waste both in reserves and
nervous energy for which the Ma
t!onaI Bank Act has been respon-
sible.
How the Law Will Operate.
Those who have been permitted to
follow the workings of the Federal
reserve Board in Washington under
STAND thoroughly hat the board eco
nomically is as sound as if it had been
named to care for the affairs of one of
the great European banks, but that its
have been most careful in
the exercise Of h latitude given them
IN making definition and providing
regulations as required by the law
Helpful suggestions have always been
welcomed and when ideas have not
been accepted it has been for the raa-
son either that they could not D
~ be htted into some general plan had
IN mlnd or that they were palpab ly
seiIsh or obstructive in character.
Inc law when in operation will Ill
do away with 25, 0 separate
ana olstlnct reserve funds held by as
iilank banks the country over, each
iuno controlled either by the avarice
or tlmldlty of the reserve owner in
many cases. n result in the accumu-
Iatlon OF the reserves Of the co11ntrv
uhuer what is to be the control Of a
single guiding agency, the Federal Re-
serve Board.
Ho.-
Given that almost certainty of helm
~hicn the new law suggests, but which
'l.e oloer statute denies, q bank here
a1ter Will be required to keep on
hand IN cash only such bile
amount as shall permit to care with
comfort for its likely daily
IN consequence money heretofore held
IN large measures in wasteful idleness
ma! WIN entire safety be released to
actl'e business The result must
piuve heip1ui to merchants. particu-
iarly SO IL they in contributing their
snare to the general situation will
require their debtors to give
tnem negotiable paper, rather than
ueplt tnem IN open
Inc FARMER will receive his share Of
pene1lt hrst in the enlarged ability of
MS bank to care for him, provided his
h Is a m OF the Reserve sys-
YIN, ana second in the gradual lower
ing OF interest rates from a figure
"iich many times in the rural sec
lions is absurdly high in connection
with loans which a bank having re-
gard or its WI safety would be per-
mitted 20 accept.
Relations Not to Be Disturbed.
Under HI new law the present re-
iatons to his bank OF a business cor
poration, firm, or individual will not
be disturbed in the slightest degree.
On the contrary, after the lapse OF
three years it will likely be found thai