The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-11-19
A Modern Evolution

Many of those who see beneath the sur
face are inclined to predict that the es-
Establishment OF the new federal reserve
system and the demonstration within a
short time that II is to be of inconceiv-
ably great influence not only In stimulate
ing American business, but also, Indirect
y, at least. in regulating It, will serve
to put an end TO the political agtations
which have been directed against Amer
lean business life. No one who has been
in touch with business or financial activ-
tiles in this city since the beginning of
the European war has failed to observe
that while optimism respecting our bus
mess and industrial future has been grow
ing since about mideSeptember there is
also the belief that the American people
are beginning to understand that we are
entering upon an era which will be char
acterized by new views of the relation of
business to the public and also OF the
public to business.
When Roswell p. Flower was governor
of New York he spoke not officially. but
personally, of a certain contemplated leg
islative attack upon one of the great vol
untary business organizations as peanut
politics." saying that this was a charac-
| teristic of the times. He then said that the
American people would have to pass
through an experience perhaps long con-
| tinued and drastic before they fully I'M
derstood that the attitude of the public
| toward business and that Of business to-
ward the public should be that of the
| freest and fullest cooperation.
1t is cooperation of this kind. accord
ing to the frequently expressed opinion
of some of the leaders In this financial
/ and business district, that the new fed
eral reserve banking system win encour-
age and aid greatly in establishing Some
times comment is made by those who
are informally discussing present-day
conditions that II Is an extra ordinary CO.
incidence associated with the contempo-
raneous establishment of the new bank
ing system and the progress of the war
upon thea continent of Europe. The Eu-
ropean conflict changes completely the
center of Industrial and commercial grav-
ity of the world, at least for the time
being. The United States is the only great
industrial, agricultural and financial ma
ton of this time which is industrially and
commercially free. The other day one of
the leading investment bankers of the
United States stated publicly that we are
creating each year $10,0 10000 of new
wealth, approximately, by the harvesting
and marketing of the products OF the soil
Nothing but adequate banking facilities
stands in the way of our command, par
tial at least, of some of the great mar
kets of the world The federal reserve
banking law has made it possible for the
largest OF American banks to establish
branch institution in that republic of
South America with which we have al
ready our greatest trade relations as
compared with other countries on that
continent, and the suspicion is strong
in this country that with the approval
of the federal reserve board other branch
institutions are soon to be established
elsewhere than In South America
AS the federal reserve system Identifies
the BEGINNING of a new era In American
banking so 1t will presumably also identi-
fly the beginning of a new era In Ameri-
can industrial. agricultural and conn
mercial life and in the development of the
natural resources of the United States.