South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-12-01
REGIONAL BANKs Do MELL

REGIONAL BANKS DO WELL.
Sen. William f. Borah. Of Idaho.
who speaking at the local high school
auditorium during the recent cam
paign, told us OF his opposition to the
federal reserve bank law and why,
bids fair 10 be found suffering ere
long from considerable political i'll
ness. The way business has picked
up from the first day Of the opening
OF the banks. Nov. IS. proves the
biliousness of his politics already.
To begin with. because there had
been some delay in. opening the banks.
he was certain that they never would
open. TO which he answered that even
If they should. only havoc could re-
suit. rs in all things else. though I'M
expressed. he seemed dependent upon
the European war 10 keep matters in
a turmoil, the result then TO be
charged against the democratic party
and ali democratic legislation. The
favorable showing made by the system
during the first week of the trial. how
ever. has destroyed even this last
hope. The certain hesitancy TO take
advantage OF the facilities afforded
by the new system has failed 10 ma
terialize. II is always interesting to
read the confessions Of a man or a
newspaper, honest enough to admit it
when he finds he is wrong, and per-
haps the Indianapolis News has been
as persistent as any, in its efforts to
cover the regional bank system with
suspicion. 1t now says:
The twelve banks have all en-
iOyed q week Of good business,
and this in face of the fact that
in order TO insure a sound begin
ming the government fixed the
initial discount rate low enough
to impress the public at the out
set with its intention OF doing
business on the same basis on
which other banks operate.
Reports from Chicago Indicate
that the most potent factor in the
recent business revival there was
the opening OF the new bank. An
optimistic view OF the financial
situation, which had been steadi-
w growing for about three weeks,
appears to have been merely an
ticipation until the opening or
the bark gave it some real OBJ
jet on which 10 concentrate. As
a result credit Immediately be-
came more nearly normal than it
has been in more than four
months, and the interest rate un-
derwent sharp decline. The in
dustrial situation also took more
encouraging trend which has al
ready manifested itself in the en-
ployment of about fifteen thou
sand men in the Chicago district.
And the banking business has
been helped. for in offering $780,
100000 at fair rate, the govern
ment set an example that could
not be disregarded.
New York reports a similar ex-
perience with its reserve bank.
And the other banks in the system
seem TO have started equally we'll.
In short, the tone of President
Wilson'S letter Of last week is
very we'll sustained by nation
wide tendency 10 regard this as
the beginning OF brighter epoch
in all business. Pittsburgh steel
interests have quit grumbling and
are now reporting firm upward
trend which gives every evidence
of starting a long swing toward
unusual prosperity. Grain prices
continue at high levels, and the
crop money is flowing freely
through country banks OF course
many factors are at work in this
revival, but the reception accord
ed the new banking system shows
quite plainly that its influence
has been at work for some time.
and that the people arc satisfied
that at last they are getting
really stable federal bank act.
Quite a tribute we must say TO
system which only a month ago was
being discounted by this same paper,
and all the politicians that IL was sup
porting. And many others OF their
rantings, no doubt. had a very similar
foundation in fact. 1t can well be
said OF their Underwood tariff
talk, the results Of the tariff. as the
commerce Of the seas resumes. having
a tendency in the same direction. 1t
is perhaps as we'll however. 10 let
them advertise their own buncombe
as proof compels IL. The federal re-
serve bank system is proving all that
the democratic party has claimed for
il. and the tariff, as experience wears
on. will do likewise-for be il remem-
bered that no one ever pronounced il
perfect. II is merely declared a great
Improvement over the Payne-Aldrich
law which Pres't William Howard
Taft said was perfect
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THE CITY RESCUE MISSION.
II we may believe the news reports