The Denison review. [volume] (Denison, Iowa) 1867-current, 1914-01-07
THE NEW CURRENCY LAW.

Inc following analysis OF the new
currency law, as outlined by w. T.
Fenton, vice-president of the National
Bank Of the Republic of Chicago, Ill.,,
gives such clear and concise state
ment Of the meaning and probable eff
feet of it that we publish the same:
"The banks of the country for sew
eral years past have appealed to con-
gress for legislation that would give
the country an elastic currency. There
ers themselves are responsible for
having developed sentiment antag-
onistic to our old banking system, and
the result is the measure which has
now become law. So far as we are
concerned, we accept the verdict as
the best one that could be obtained
under the circumstances, and we have
promptly signified our intention of
joining the system OF federal reserve
banks. The law as passed has in it
the principles of scientific banking.
MANY of the things recommended
by the Chicago conference have either
been incorporated in the bill or left
to the discretion of the federal board.
can satisfy themselves with the cen
trail body represented by the federal
reserve board.
"Those bankers who insisted upon
mobilization Of reserves to correct
the weakness of the scattered bank
reserve in this country have got what
they asked for, but not in the form.
The reserve will after three years be
modified in the federal reserve banks
"The influence of the bankers has
been made manifest in shaping legis-
lation the bill having been modified
so that the banks will be represented
by an advisory council, one member
from each federal reserve district to
be in consultation with the federal
board, but without power to vote.
The regional banks are to have
nine directors, six Of whom are elect
ed by the banks, and these directors
are to elect the officers of the federal
reserve banks in each district.
The bill ultimately deprives the
national banks OF the country OF the
right to carry any part OF their re-
serve with other national banks, and
ually to the federal reserve banks
such reserves as have heretofore been
carried in the reserve cities. The OPP
Grafton of this bill does not material
ly change the relations that have here
tofore existed between banks, except
so far as the shifting of reserve is
The transfer of reserves
to the federal reserve banks is to eX
tend over a period of three years. This
gradual shift should have no effect |
on the credit situation. except from
causes removed from banking rela-
lions and conditions.
"The success of the system depends
entirely upon the management of the |
federal reserve banks, as has always
been the case with individual banks,
and when we say that the banks en-
tering the system have control Of the
operating machinery and the techni-
cal workings of the regional reserve
bank through it's directors, and that
each federal reserve district is repre-
sented upon the advisory board, it
means that we believe the operating
system will be directed by able and
men, upon whom it's sue
cess will ultimately depend, while over
the whole will be the regulating con-
troll of the federal reserve board, to
be composed of the most capable men
while the bankers of the country
have been insistent upon many of the
that have been incor-
porated in the bill, it has been their
aim to cooperate in con-
structive way for the benefit of all
the people, and in saying this, it is on
ly to say that we believe the inter
ests of the people are so inter
linked with the banks of the country
that they cannot be disassociated, and
anything that affects one affects the |
other"