American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1914-11-19

SpdE6hoa. . q SopD.3 Gzo-c, ~ lo4
~ here 4 the corEsct collateral oou-
Pied with legitimate demand and when
the MONEY y not needed Il will b. ~
tired to ~ ssued again whea the oc-
casion demands~ ssf& A..
"our federal reserve system, which
In reality bringa the United States gov
ernment Ia a. = hacker Of the business
Of chs nation approaches the we'll en-
tablished4 financial systems OF Eng
land, France and Germany. where the
government practically stands behind
the banking system; through which the
demands of business can be easily met
BY the issuance Of bank notes, pay
ment of which is guaranteed not only
by the banks themselves but also by
the government.
For example. when the great Eu-
ropean war broke out, the countries
above named were Immediately
brought face to face with a serious
crisis. but through the thorough or
ganisation Of their financial syatems.
England. France and Germany. were
enabled TO provide the sinews OF wsr
while. at the same time. the business
Of the country. though severely cur
tailed through the b~lockading OF the
sea trade routes principally, was and
Is carried on by these same hanks.
under the new SYSTEM tns7peopie
VIII no longer fear tahics and, money
will not be boarded as heretofore.
Hence there will always be suficisnt
money to carry on the business of the
country. For these reasons l believe
the new federal reserve system to be
the greatest step forward in finance
that this country has ever made"
May BE Cumbersome.
F. F. Johnson, cashier Of the Boise
City National bank. said: The OPEN
ing of the federal reserve banks Mon
day morning is an important advance
In the banking system of the United
States. While l fear 1t will be found
more cumbersome than the operation
of a central bank with its necessary
branches, 1t is nevertheless essen
TALLY the same. Members OF the fed
eral reserve board are the directors
of the central bank without the bur-
den OF detailed bank administration,
having supervision over all ~ region
al reserve banks.
"The power given the board is suf-
fciently broad to mobilize reserves
and by wise administration give an
elastic currency. The latter has been
much needed at different times in the
past.
No Immediate Changes.
"The public. 1 fear, will be disap-
pointed In the fact that the lower
minimum reserve requirements will
not Immediately make available large
sums for the banks to loan. Banking
must go on much the same until
many details and future policies are
worked out.
"The opening Of the federal reserve
banks will have the immediate effect
Of placing whiting the reach Of the
member banks a large amount o.
emergency currency, preventing II
the future currency panics such al
the one years ago. II Will alst
supply currency for crop movements
without the tightening Of money a.
formerly.
Il do not believe good bankers en-
pect to initiate business by rushing t.
increase leans and lower reserves a
present not unnecessarily high. | d.
believe. however, they are welcoming
this new factor in banking with q
resolve On their part to do everything
practicable to give the country thu
greatest possible benefit therefrom."
Create Elastic Currency.
Crawford Moore, vice president Of
the First National bank, said: "Whil,
the federal reserve act was designed
to correct many faults apparent fol
years. its chief purpose is to create {
currency expanding and contracting
with the needs OF the country, elimi
mating panics and currency famineI
which at numerous times have stag
mated business with perhaps no less
injury to business men in general
than to bankers.
There is some apprehension thai
loans will not contract az desired, re.
sulting In time in an imitation quite
as injurious az panics. However, It II
quite probable that the reserve board
will check all tendencies toward per.
manent OF severely injurious inha.
ton.
There can be no doubt that the
ease and certainty Of securing funds
through reserve banks will result IA
lower and, in time, nearly uniform
rates throughout the country.
Some features OF this law may re.
quire amendment, but II IL general,