The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-03
A Dangerous Programme Of Need.
less Delay.

At least eight and probably twelve
Federal reserve banks will be provided
for by the organization committee act
ing under the mandate Of the new cur.
rency law. Nothing can he gained BY
discussing the committees programme
from viewpoint which regards the un.
wisdom Of esta blishing 30 many banks.
Exception may he taken. however. to
the programme which the committee
has prepared for determining the
proper location Of Federal reserve
banks and the boundaries Of the sepa-
rate districts.
1t Is already manifest that the plan
of the committee to tour the country
and hold hearings at various points will
stir up and foster a pernicious amount
Of sectional controversy. Within a
week after the Federal reserve act
went on the statute books the commit,
turbing animosity toward the financial
supremacy of New York and resulted In
proposals for the narrowest limitation
possible Of the New York reserve dis
trict. The rivalry elsewhere shown In
the presentation Of plans for the recog-
milton of various cities as regional CEN
tres can hardly fail to have its out
come in long. lasting bitterness.
We are nor very much concerned
with the stupidity displayed in these
disputes, but we are concerned with the
menace that Is offered. One OF the OBJ
jects Of the movement for financial
reform was to eliminate the sectional
competition for cash and credit which
in times Of strain has cOnduced to the
precipitation Of panic. This object may
eventually be frustrated II the Federal
reserve banks are planted in hotbeds
of sectional strife. The results Of such
strife must infallibly endure and be,
come dangerous at a critical occasion.
Other considerations adverse to the
committees programme Of itinerant
hearings are no less serious. It Is not
apparent WIN the committee should
have to leave Washington or take any
thing like MS long as the interval to
March I, the date set for the conclusion
OF hearings, to acquire the informal ton
on which to base its decisions 1t can
summon to the capital competent per.
sons from every part OF the country,
who could, In two or three weeks time
at the most, tell the committee all that
4 Mazda IN knnvty IN IN II.
fixing the reserve cities and the limits
Of the reserve districts.
Unless the committee desires to place
itself on exhibition. the extent OF its
projected tour in time and place cannot
he reconciled with the real require
ments of its task. Undoubtedly such
wholly superfluous procrastlnation may
afford a sufficient length OF time to fight
out the contest over the ONCE OF the
Comptroller Of the Currency. which
seems to be looming up on account OF
the ambitions attributed to JOHN SKEL-
TON WILLIAMS. Yet even this does not
appear to be good reason for imped.
ing the early establishment OF the new
banking system.
Moreover, the effect Of the delay
which the committee proposes may be
! TO leave the national banks In ignorance
Of two things which they ought to know
before the expiration Of the sixty day
period on February % next, within
which they are ordered by the law Ia
signify acceptance or rejection Of the
| Federal reserve net.
1t IL perhaps of less consequence that
the coerced national banks may moi
f., know where the reserve banks are to bl