Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-04
WORKING orr rur BANK LAW

Secretaries MeAdoo ana Houston
begin mis- week their Investigations
from which they hope to determine
the location OF tho regional reserve
banks and the boundaries OF the terri.
tory 70 bo served by them.
The most encouraging thing about
the new currency law is the cordial
acceptance Of Il hy banks. business
corporations ana the public generally.
The cry Of few critics that Il is
likely 10 breed initiation ana panic
finds no echo The country is accept
ng u ana means to make the best
.of 81
That would not be SO IT, after all
it were not pretty good law II is
a compromise, as Is every big law
threshed ont slowly in countrywide
conferences Of All parties and an in
torests must be-. These conferences
slfted out the Objectionable features
for the most part. Those that remain
VIII be modified as defects become
apparent in practical application All
great laws have TO be licked into
shape, even tho organic law Of tho
nation rs made 10 work better than
IL was framed
While scientific experts generally
believe that a central bank would have
been better than eight regional re-
serves, It Is probable that they have
overlooked the necessities ~ a great
country having so many diverse in
tcresls incident 10 locality A central
bank, located at tho capital Of the ma
ton would have been subjected. lnl
spite Of Itself, TO the Influence Of New
York, New England and the states Of
the southeast. u never could have
conditions in Colorado.
New Mexico ana Arizona.
With the expert technical admin
islration OF the banks worked out BY
The cordial cooperation Of the gov /
ornment, the banks and the public I
the eight banks, however independent |
In name, viii fan into the natural /
flexible rotation Of branches Of the
central reserve bonrd which viii have
The practical authority, In all leRitl-
mate limos, Of q central bnnk.
Objections TO he new currency Of
exchange we're modified IN confer
'ncc The notes are legal tender only
o tho government and are redeemable /
u gold only at the treasury, In gold \
~ legal tender Mt the regional re-
'ervc banks. Moreover, the note re-
serve IN the banks Of Issue has been 1
'alaed from one-thrd to 40 per cent.
md the responsibility for issue and
redemption has been more strictly
liked on the regional banks
The danger of initiation has been re-
lueed 10 low point, always assuming
hat the federal reserve board is WISE
y appointed and uses ita extensive
1oWcrs With courage ana technical
ikiih After all that is the base upon
which the success and safety OF the
new system will ultimately rest. The
iower over note issue and interest
'ates b interlocked SO closely that the
ederal reserve hoard may he said 10
iold the financial safety Of the coun- I
~ ia the hollow Of It's hnnd in cmer-
'cnciea That condition was pointed \
mt by Mr., Joshua Reynolds in his
dmlrnhie aud clarifying interview
published IN the journal on the day
he bin passed the senate
The great duty OF the central re-
crvo board VIII be 10 marshal re-
ewcs IN time of emergencies for nee
.ssary expansion Of the currency. and \
irompt contraction Of notes and loans
when the emergency ends 1t Is a
financial strategy hoard with the duty
If throwing the reserve strength
needed aud 20 remove It
when such necessity has passed. just
s skllim general manages his forces
n ercat comprchoulve military cam-
lnign.