The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1914-10-14

stabilize conditions - &
n Is only necessary TO cite tae
fact chat II those countries Mn1cn oeT
pend upon central banks % maintain
the "a i,IIity ~ conditions which In
their experience has preYenfeu those
panics to which we have been sun1eee-
red. we md those central banks nam
tanning 4 discount rate always n1gner
than the commercial. rate In the same
country.
'.The benefits Of the new system
will become apparent with the iapss
Of time. The change VIII be gradnal
and should be regarded as an evoiu-
+i,s, the hank M business during
which the bankers themselves mus.
rely upon their own resources ana
conservation should be the Watcn-
word. Any effort to utilize the re-
discounting privilege p-imariiy 1or
profit should be discouraged.
at must alwaysSbe kept IN mina
that to realize. the CHIEF ob1ect Wnlcn
Congress had in view the federai re
serve banks must always pc READY %
extend help; they cannot hs man, ha sam
| Keen them drained OF their resources
In ordinary times.
He saw a great advantage from the
new act in the maintenance OF q Ior1
efgn exchange market, and tnougnt
the federal reserve banks should M
vest in foreign bills, instead OF soteiy.
| in refiscounts to domestic banks "
was this class of business, ne Salu.
| that was sought by the bankers 81
Great Britain and Its ramincatlons e1-
tending all over the world mas maoe
London its financial center
:. He said is was popular miscon-
lcention that with the opening OF the
federal reserve banks. government
funds would be deposited in those
hanks and the independent treasury
avstem of the United States ana us
cnnsenuent expense to the govern
ment and to the business OF the coun-
try. would become a thing OF the past.
"a careful reading Of the law,
isaid .sdiscloses the fact that It's au-
thors had no such intention, ana LIZ
- the government funds are deposit
| ed IN those banks it will be at the as
erection Of the secretary OF the treas
ury alone.
,ra . he continued, ITO say that u
does not take the government our OIL
the banking business, and that It con
fers upon one of our government "a !,
acials an extraordinary power an ~
discretion unwarranted by tne spi -
Of our institutions and repusnans -
republican, PiAhSARAS'N''si :. .,1n-
sThe power conferred Upon the sec
rotary OF the treasury to control mol on
ey and credit, If attempted by Lns
members of this association, Woulu
nrobably call for special act OF Con-
press to curtail their activities.
He referred to the failure OF Ine
hanlrars to have their say IN the
notification of the federal reserve
act II was a representation to Wnicn
thei, interests clearly entitled them
he t.e,S arened. but he believed the Adv1s,
ory Council Of Bankers when na -
been authorized, similar to the one m
yopue IN Germany, should yielo an
infiuence upon the admintstration OF
the system that was denied them IL
It's management he
"The experience In Germany, ne
.aid ahas been that the advice OF its
oa,,ncii In the conduct of the Relcns
SonL Il rarely refused and generally
soIIowed. The fundamental featurca-
o ~ the bill Organizing the federal re-
and the establishment OF the AavisoIy
sn5 the establishment Of the AdvlsaIy
Council may furnish the balance VIII =
ont which the system might De denc-
lent. .1,ars have
Cor Years been earnestly demanding
some change in our former system;
snd Il NAV be confidently predicted
that their. efforts to make 1t success
full will be at the command OF tnose ~
charge of its operations.