The Barre daily times. (Barre, Vt.) 1897-1959, 1914-12-04
PASSING OF
THE PANIC
Secretary Hamlin Says 1t Is
Now Among the
Antiques
RESERVE SYSTEM
SAFEGUARDS BUSINESS
Speculation, However, Still
Is Dangerous, He
Asserts

New York Dec. 4.--Panic due TO dis.
trust of banks has been relegated to the
museum of antiquities by the new re-
serve banking system, in the opinion of
G. S. Hamlin governor of the federal re-
serve board, voiced yesterday afternoon
in speech before the New York Cham
| Der of Commerce. "The federal reserve
system will relegate to its proper place,
the museum of antiquities, the panic
generated by distrust in our banking sys-
tenn leading to struggle of self-preser-
walton between bank and bank and indi-
vidual and individual and ultimate hoard
ing by the people," Mr.. Hamlin asserted.
"Such boarding usually follows boarding
by the banks and does not precede it. IL
boarding by banks should cease, boarding
by individuals would never occur, and
both, / believe, will be relegated 10 OBJ
security under the federal reserve sys-
tenn"
Mr.. Hamlin thinks the new system will
not necessarily do away with all panics.
'If in the future business expands UNI
duly under the spirit of speculation the
day of reckoning will surely come in the
future as it has in the past" he said.
"Undue expansion will correct itself, just
as the air bubble will ultimately burst.
| believe, however, that the federal re-
serve banking system will materially
check undue expansion. 1t is fact,
however, that even under the federal re.
serve system, the banks still have ii in
their power to permit, if not to encour-
age, undue speculative activity, and If
they do this, the inevitable result--com-
mercial stringency-must follow. When,
however, the state banks and trust com
panies of the United States join the fed
eral reserve system I hope in the near
futurel even that possibility will be
greatly minimized.
"Much speculation exists as to the au-
thorship of the federal reserve act. | can
say, with confidence, that no selfish in |
terests assisted at its birth. | can fur |
Their say that beyond those primarily re-
sponsibe for its provisions Glass |
and others OF the House. Senator Owen |
and others of the Senate, and the score
tary of the treasury-there looms up one
figure more entitled to the credit for its
provisions than any OF the others, the
man primarily responsible resident /
Wilson"
Samuel Rea, president of the Pennsyl-
vania railroad, asserted that the eastern
earned less than per cent dur
ng the past year upon the money invest
ID in them. This serious condition is
rot new, but il is now acute" he said.
we have been living on hope at least
ince 1910. when the downward trend was
learly indicated; how much longer we
an exist on that precarious asset | will
Tot venture TO say, except TO suggest
hat it takes more than hope, advice or
or all combined, to pay
wages and taxes, provide satisfactory
ervice, pay dividends and retain a prop {
r credit basis 10 obtain capital for inn
rovements and extensions.
Increased traffic will not cure the
abroad malady for remember that mp TO
he present all their economies and eff
iency, obtained by increased train loads, :
tc.. have been offset by increased costs. a
ages and taxes. These companies. !
aerefore need not merely the very mod {
rate increase in rates for which they pc j
tioned the interstate commerce commits 4
on. but also all the revenue that can bc e
.cured by working out in practice the O
arious other means suggested by the C
,mmission for increasing revenue. The n
-ouble in the present situation said
n. Rea, "is that the interstate com. p
erce commission has been overburdened b
ith work and with responsibilities. r
ANY Of which may be deputed 10 a G
rye corps Of subordinates. 50 that in g
any instances direct consideration By b
le entire commission is impossible" p