The Dickinson press., 1914-01-31
BELIEVE CURRENCY Bill !
WILL HELP NORTHWEST
Banker Phean Right in Line for President Wilson's New Currency Law
Wants Reserve Bank in Minneapolis. There Will Never be Another
Money Panic in the U. S. Men Deserving Credit
Can Always Get Money.

A recent issue of the Minneapolis
Tribune publishes picture of Hon. j.
E. Phelan. president of the First
National bank of Bowman, who was in
attendance at the conference at Chicago,
relative to the establishment of re-
serve bank in the Northwest. The fol-
lowing is published in connection with
the proceedings Of the conference:
j. E. Phelan Of Bowman. N. D., told
the committee that the North Dakota
Bankers association was unit in want
ing the northwest set off as separate
reserve district and would prefer Min
neapolis as the site for the reserve bank
as against any other city.
Mr.. Phelan made one of the best wit
nesses that has appeared for Minneapo-
lis. He spoke of the remarkable growth
of the Northwest in the last three dec
AIDES and admonished the organization
committee that it should locate its dis
trict as much with an eye to future de-
velopment as to present importance.
He emphasized the possibilities in the
grain trade for western Canada that
seemed likely to come to Minneapolis
and touched on the success of James j.
Hill in developing the regin without
mentioning him by name.
There is genius in the northwest,
said Mr.. Phelan, who in my time has
built up $500. 900, 600 property in this
territory. 1t has been done in IS years.
When such thing has been done, what
may not be in store for the tuture?''
In connection with the FORGING the
following from an authority is of inter-
est: -.-
Here's the plan under the new law:
A man who has tangible assets and un-
shaken credit may 60 to his local bank
any time and borrow money on his per-
sonal note properly indorsed. If the
local bank has not the currency to give
him it may 60 to the federal reserve
bank in it's district, and, presenting the
borrowers note as security, it may get
bank notes for him which will circulate
all over the country. II the federal re-
serve bank has not the necessary bank
notes, it can 20 to the United States
treasury and get them, provided the
original borrowers s assets or credits are
, good.
This is simple statement. shorn of
all the technicalities. of the fundamen-
tai and important operstions of the law
in commercial and financial transac-
tions. 1t will be no easier-than before
for the man with poor assets or bad
credit to borrow. but it will be i'm
measurably easier for the man engaged
in legitimate and profitable business
to turn his wealth or his credit into a
form which will be accepted without
question throughout the country.
The technical statement of the mat
ter is that at last we have an. elastic
bank note currency, the volume OF which
expands as the number Of the trade
transactions throughout the country in
creases and which contracts as the
number of nation-wi trade transac-
tions decrease.
This law takes away from a few
capitalists the power to determine the
amount of money in circulation. The
United States will see to it that the
demands for necessary money. coming
from individual. communities and
states, are met.
t. There will be no more panics in the
r United States.