The Detroit times., 1914-04-02
Vice.P President Of First National
Bank Tells Stock Exchange
Members of System
SEES GREAT ULTIMATE
BENEFIT TO BUSINESS
Declares That Much Depends on
Makeup Of The Reserve
Board


Of the new Wilson currency bill was
voiced by william ]. Gray, vice-presi.
dent OF the FIRST National bank, In
an address before q gathering OF en-
ployes and members Of the Detroit
Stock exchange. In the Griswold house.
wednesday night. Mr. Gray was the
principal speaker and guest of honor
at banquet which is to be the first
OF series of similar affairs to be
given from time to time by members
OF the stock exchange.
Il want to say In the beginning"
said Mr.. Gray. that I am heartily in
favor OF the new law. This statement
from q banker requires some courage.
but. nevertheless, / believe that the
change will result In q marked i'm
provement In the country's financial
system.'
Mr.. Gray briefly reviewed the his
tory Of the various currency systems
employed ut different periods in the
country's history, and explained how
the reserve requirement and the lack
OF suitable provision for rediscounting
paper had made the present system
inelastic, making It difficult In periods
when money Is tight to secure SUM-
cient funds fol- the financing OF bust
ness interests.
while heretofore the bankers have
largely run their own business" said
he. "the United States government
now proposes In a large measure to
run II for them. ! do not know but
this may prove q good thing. The
success or failure of the entire plan
hinges largely on the makeup OF the
federal reserve board, which will to q
great extent exercise control over the
entire banking system Of the country.
Although poll Of the country's banks
previous to the passage Of the cur.
rency bill, for the purpose Of ascer-
tanning how many were willing to
come under its provisions, gave q ma
jority of three to one against adopt
Ing the system under any considera.
tion, no sooner had the bill actually
become law than these same members
were vieing with one another to come
In.
I'VE all know the law, and now
what we would like to know 10 just
how It will work out That 10 some
thing which no one can predict with
great degree Of certainty. but am
confident that In time the new system
will demonstrate its superiority and
we shall all like II. There are many
persons who profess to see difncultiea
IN the way Of carrying out the pfovi
that they know the requirements laid
down by the government. are guard.
ing against these, both for their own
benefit and that Of their customers.
The most dificult problem Is the SHIFT
ing Of reserves into the regional
banks. The bankers themselves do
not know just how this IL to be
brought about, but believe that be-
fore the time limit of three years has
expired this may be gradually accom-
plished without the troubles which
many profess to fear may accompany
the transition.
THE chief advantage to result from
the new system will be the opportu-
nifty It offers for the rediscounting OF
pager. Under the present arrangement,
II our bank IL loaned up and some
worthy business enterprise In need Of
money comes to us for funds, we arc
either forced to call upon New York
bank to take up some OF the paper
held by us or refuse the loan. The
New York bank IL under no obligation
to accommodate us. Under the re-
gional system, the regional bank with
which we are aniliated. will be CON-
PEELED to rediscount our papeC thus
enabling US to put our customer In
funds"
Mr.. Gray expressed his conviction
that n branch regional bank will soon
be established In Detroit.