The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1914-01-02
flDAY. JANUARY 2. 1914.
DEFENDS on THE e

saDIEPENDS ON THE MEN.
ru,Fy thoughtful person who has
ng1 . comment on the new hank.
AID currency law agrees that the
:. y Of the law depends almost en-.
on the kind Of men who r Sc
~ to administer it. That is the
kah situation in a nutshell. 1t
la to be agreed that in the law
dts provided machinery capable Of
a used for the most beneficial re.
That machinery of any kind
Idle used unwisely everyone knows.
Re machinery is so poorly con.
FED that it will fail to operate
IL rly in any hands. But in this
n aw We appear to have a piece Of
g insry which will work we'll IL
Bic me- are placed in charge Of
Nv md that capable men will be Sc
=. who ~ doubt The selection
nnItne Of the important heads rests
w!nthe president. Mr.. Wilson ia very
E,ron being . fool. He knows that
administration will be condemned
rs 'er II this new law fails to work
use OF his appointment Of unfit
ri Naturally he does not want to
q I've a failure. Hence 1t is safe
tfJsume that he will select At men
ahhe places which are to be filled
st4is appointment. And when the
les which are members Of the re.
ptal banks come to name the men
lM are to act as their representa-
ass. It 10 reasonable to suppose that
az will select the fittest men in their
|aitp. They will not deliberately I'm.
AXE to wreck their own business
a7lacing in control men who are un-
I n any way. On the general sub
OF the law and its acceptance the
neapolis Journal says:
fine best thing about the new
king law Is the cordial acceptance
It by the banks. business corpora
- ana the general public. The cry
p few critics that It is likely TO
sd imitation and panic evokes no
%. The country is going to make
best Of 1t.
THAT would not be the case, if 1t
e not after all a pretty decent law.
b a compromise, as every bis law
''eshed out slowly in countrywide
,~lference Of all parties and interests
,fst be. But the compromise has
sed out the most dangerous and
any Of the Objectionable features.
ose that remain will be modified
practice. as every law. even the or
,lic law Of the country. is made to
rk better than it was framed.
For example. all scientific experts
rec that the best law would have
fi1tained a central bank feature. The
l,tral reserve Of the new system will
i, distributed in eight regional banks.
1t with the expert technical admins
ftion worked out by the cordial CO.
|eration OF government, banking in
tests and general public, the eight
INKS. however independent in name.
fall into the natural flexible rela-
IN Of branches in operation. The fed
al reserve board will serve the prac-
al purpose Of a central bank bank.
reflections to the new currency Of
change have been modified. The
ties are legal tender only to the gov
nrnent, and are redeemable in gold
lly ut the treasury. in gold or legal
nder at the regional banks. More
er the note in the banks Of
lue ha sheen raised from one-third
forty per cent. and the responsible
: for issue and redemption has been
pre- strictly fixed upon the regional
;nks.
1.-THE danger of imitation has been
duced to q low point, always assum
3 that the federal reserve board
wisely appointed and uses its ex-
nsivs powers with courage and tech
tal skill. After all. that is the basis
ION which the success and safety Of
. system will ultimately rest. The
Iwer over note issue and discount
terlock so closely that the board
II hold the financial safety Of the
untgy In the hollow Of it's hand in
Therefore. It's members
ast be carefully chosen. especially
two experts In finance now pro-
led for.
The supreme mission Of the board
~ the mobilization Of reserves in
ensrgency for necessary expansion
thu currency, and prompt contrac.
a ~ both notes and loans when the
r9ency Is past. II 1t shall order
~ rsdtscounts prudently at the be-
and coerce note contraction
the issue banks through stern re.
ctien Of loans when the worst Is
81 the new law will become a heal
. Instrument Of finance and busi-
~ without stimulating the disease
speculation on strained credit"
DIR COOK AGAIN EXPOSED.
~