The Odanah star. [volume] (Odanah, Ashland Co., Wis.) 1912-1916, 1914-01-23
PANIC IMPOSSIBLE
UNDER BANK LAW
Reserve System Precludes Money
Disaster, Cabinet Men Aver.
PLEAD FOR COOPERATION
PLEAD FOR COOPERATION
MeAdoo and Houston Close Chicago
Hearing and Say BANKERS, Bust
ness Men Must Unite 70
Make Act Success"

x
President Wilson's cabinet made 9
plea for cooperation OF bankers, busi-
ness men and the public In order to In
sure q safe transition from the present
banking system to the system brought
about under the federal reserve act.
In addresses at q joint banquet OF
the illinois Bankers association and
the Bankers club Of Chicago w. G.
McAdoo, secretary Of the treasury. and
D. F. Houstorb secretary Of agricui
ture. analysed the new measure and
cited facts and figures to show that,
under It. panic would be impossible.
The two cabinet members were well
coined to the state by Governor Dunno,
who assured Secretary McAdoo that In
Illinois at least state banks would be
permitted to take capital stock n the
federal banks.
"Law 100 Per Cent. Good
THE people who say that this meas
ure is so per cent. good and 20 per
cent. bad are simply making an arbt
trary statement that can neither be
proved nor disproved," said MI. Nc
Adoo. Il say that any measure that
will prevent recurrence OF great
financial panics in this country Is 100
per cent. gcod-and that is what this
measure will do.
in my opinion the present federal
reserve act represents the greatest bit
of constructive legfsiation in the his
tory Of the country. II by sacrificing
my health. my reputation and every
thing else that might dedicate to the
cause, succeed in placing this sct In
operation in such a manner as to
cause It to work in the interest Of the
whole American people-as know. It
will will consider that the sacr1fce
has been well worth while.
Need Control Board.
What we need In this country is an
adequate power to meet any situation
that may come up, speaking from q
currency standpoint. That Is just the
authority we have vested In body of
seven men, under this act But there
are many who are afraid to have that
power In such hands. They fear the
results Of such control. Those citizens
who voice this objection, however, do
not appear to realize That even greater
power has In the past been placed In
the hands of one man.
There also are those who predict
that the transition period, as this act
goes into effect, will be accompanied
by financial stringency. And there
are those who insist that financial in.
fiation will accompany It. / say that
neither will be true. II the business
men will simply pull together and as
sist in carrying this measure into exc
cution It will prove one of the most
valuable pieces Of legislation ever en-
acted In this country"
Secretary Houston was equally opti-
mistic about the outlook for business,
based upon his study of the banking
situation since the present. investiga-
ton by the two secretaries was begun
pending the naming Of sites for re-
gional banks.
lndorse Reserve System.
The new federal reserve act was
given unqualified Endorsement at a
meeting of the National Association of
Bank Supervisors. Resolutions setting
forth the views of the bank super
visors were adopted after an address
by Edward H. Doyle, president OF the
association and commissioner Of bank
ing in Michigan, in which he said that
calamity howlers" mad been disap-
pearing rapidly since the passage OF
the currency act
Business men and bankers Of west.
ern cities urged the necessity of d re-
gional bank in the northwest before
Secretary McAdoo and Secretary Hous.
ton In the federal building. Practical
ly the entire morning session was Civ.
en- over to tho presentation of the
claims Of the rival cities Of Minneapo.
lis and st. Paul. Then Secretary Nc.
Adoo adjourned the Chicago hearing.
A similar hearing will be conducted IN
St. Louis, beginning today.