The Birmingham age-herald., 1914-01-07


w. P. G. Harding, president of the
Birmingham Chamber of Commerce and
OF the First National bank, made an
address on the new currency law YES
terday at the regular noon luncheon of
the Birmin CHAM Ad club. Attending
the meeting were a large number of
the business men of the city who list
encd to the lucid and instructive re-
sumo of the currency law and the mode
of operations of the regional reserve
bank system with much interest.
Mr.. Harding used the brief space of
time allotted to him to the best ad
vantage and was very clear in his ex-
plantations of the various features of
the law stating that the passage of the
bill without any revolutions or disturb :
ing effect in doing away with the old
system was "the most remarkable leg
islative feat in the history of Amer
lea" The speaker was given close at
the conclusion was given liberal round
of applause followed by a rising vote
of thanks from the Ad club.
Introduced by Sparrow
Mr.. Harding was introduced by John
Sparrow. president of the Ad club, and
launched into his subject by comparing
the passage of the currency bill to the
great engineering feat of building the
Grand Central station at New York, in
asmuch as neither interfered with the
usual run of business While being put
into effect. Commencing with the panic
Of 1886 he briefly referred to the Sow
eral money panics since that time down
to the panic of 1907, which he stated
came in the midst of prosperity and
was the result of the speculative meth
DDS under the old system of banking,
terming it a bankers panic"
Under the new currency law he
stated such a condition of affairs can
not be brought about as, instead of all
the reserve money being concentrated
in New York, there will be not less
than eight or more than u regional
banks located in the several sections
of the country All national banks
within the zone of a regional bank
must place their reserve in the re-
gional bank or forfeit their charters
The speaker stated that he believed
many of the trust companies and state
banks will be subscribers to the re-
giona1 banks.
Mr.. Harding explained the various
features of the regional bank the as
sessment of the capital stock of the
subscribing banks and the manner of
government of the regional bank sys-
tenn
"The regional bank" he said, will
be governed by a reserve board con-
sisting of the Secretary of the Treas
ury and other officials. Each regional
tanlx will be controlled by a board of
nine membrs. of which thre are to be
bankers or directors in banks, thre,
TO be business men who may be stock
holders in banks but not directors, and
three to be appointed by the board al
Washington"
He said the bankers generally were
immensely pleased with the new cur
rency law and with it's many advan-
tages over the old system. Nothing
made a merchant more weary. he de-
clared. than to go to his banker for
credit and be told he could not be dc-
commodated Under the new system any
merchant or farmer entitled to credit
can get money when needed at a fixed
and reasonable rate of interest from the
regional bank
Best Law Ever Enacted
In speaking of the other features of the
currency law, Mr.. Harding stated thai
with the possible exception of one or two
amenoments that might have to be made
1t was the best law ever enacted by Con-
sress and that it would put the country
on such a safe financial basis that money
panics in the future would be as scarce In
the United States as in the leading Eli-
Korean countries.
Coming to the question of locating one
of the regional banks in Birmingham, he
ssid the geographical location of The
| other banks would largely determin,
whether one would be located here. Bir-
| mingham, he said, had become a com
mercial industrial and jobbing centre and
would be SO considered when the location
was determined. He said that neither pol
itics or political pull would influence the
selection of the cities in which the bank
would be located, but the most logical city
within the zone" or territory in which
1t is decided TO place a reserve bank.
He said Atlanta had made some head
way in this regard but that the twc
Carolinas had had to be considered. The
same condition prevails in New Orleans
he said, which Is too far removed from