The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-11-17
BUILDING anew
Federal Reserve Banks Put
Business ON New Basis.
Days Of Harmful Wall Street
Speculation Over.
TO KEEP COMMERCE eoINe
New Institutions Will Aid All
Forms of Industry.
Larger Credit Made Available
for Every Enterprise.
TO KEEP COMMERCE SONS
INV b C. Eorhes.l

New YORK, NOV. ia new fOunda-
ion for Americas business structure
was laid yesterday and the edifice to be
reared thereon should win the admira-
ton of the world.
Heretofore American business men
have triumphed in spite of banking
handicaps; these handicaps have been
removed.
The greatest beneficiaries of the new
federal reserve system will be our mer-
chants and manufacturers. also our
farmers In the past the needs OF these
classes have, chiefly because of our alb
surd currency system. often been SUBJ
ordinated to the exploits of Wall street
gentlemen of speculative proclivities.
In plain language the new order
means that every merchant, manufac-
turer, importer or other business man
who has tangible liquid assets, will be
able to obtain funds for the current
purposes of his activities. He will be
abe to borrow on raw material or on
or dlstrlbutlon-on material that will
bring cash in the ordinary course of
trade within a period of three months
Farmers will be granted accommoda-
ton on their products for six months.
Keep Commerce Going.
That is, the federal reserve banks
will keep the day to day commerce Of
Lie COOAlIy 6OluS. leaving 10 OCn0I IN.
situations the task of supplying capital
for building railroads. establishing new
industries. opening up mines and other
enterprises which lock up capital in
immobile. non-nuuidating form.
Every reasonable request for credit
ought to be satisfied under the new
system. What this should mean for
Americas mercantile, commercial, in
dustrial and agricultural upbuilding
who can estimate?
The danger of initiation has been
widely discussed. There is room under
the law for almost infinite inflation-if
those who administer the law choose to
act like fools, which is a remote con-
tingency. The law confers upon the
federal reserve board at Washington
the most staggering powers, but 1t also
imposes on the board tremendous re-
spOnSibilities in guarding against mis-
use or abuse of those powers. And so
long as there are men on the board of
the stamp of Paul M. Warburg mall
practices or gross mismanagement need
not be feared.
by splitting up the undesirable con-
centration of ''morey power in wall
street, by giving each section of the
country it's own reserve bank to be run
on the same lines, and by providing
that one district may be called upon
to aid another, it is logical to hope
and believe that sectional bitterness
and jea1ousies will be banished and
that the new spirit of fair play which
is manifestfng itself in a variety of
ways will be greatly fostered.
Commercial PrOvincialism,
One Of Americas most unfortunate
characteristics is its commercial pro-
vincialism. The new banking system,
by permitting the opening of branch
national banks in foreign countries,
should tend to cure this.
The overwhelming trade Opportuni-
ties which the general Generalization
in Europe drove to America found us
lacking in organization-and other
things-to take full advantage of the
occasion. We have not been accus-
toned to think internationally. We
have not felt. as European nations
have felt the urgent need for captur-
, ing foreign markets. Our wOeful
paucity of merchantships tended to
keep our thoughts and activities at
home. whereas Britain and Germany
and small oversee nations were accus-
! toned to looking upon the whole world
as their natural field for exploitation.
All these matters are in a fair way
of amendment. Already two branch
banks have been set up in South Amer
lea, our shipping laws have been some
what modified, our leading men of at
fairs have turned their gaze and their
attention to foreign shippers, our
newspapers have given prominence to
the potentialities of other lands and
national sentiment has been so aroused
! that the conquest Of new markets is
coming to be looked upon as a matter
of patriotism quite as much as a mere
mercantile question of business.