Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-14
CONTROL BOARD
COUNTRY'S HOPE,
DECLARES EXPERT
Financial Specialist Tells Man.
nfacturers Personnel Means
Much to Business.

sonnet OF the Federal Board of Con-
troll will make a success or failure
OF the new currency bill was the
burden of an address by William c.
Cornwall, financial expert Of ]. S.
Bache & Co., New York bankers, at
the annual convention of the Manu-
facturers' Association here today.
Mr.. Cornwall said that President
Wilson should be as judicious I'm his
selection Of the members as he would
be In selecting the Supreme Court.
He declared that the chief danger
lies in the possibility of the board
becoming political In character. in
which case 1t would set up a ma
chine impossible to abolish. He said
in part:
ION December % the new currency
bill became law by the Presidents
signature.
Importance of the Bin.
The Importance of this great
event to the United States--to the
nation as a whole-to every individ-
uai in it-can hardly be realized. It
is as If a new light were breaking
over a world which had previously
existed in perplexing darkness.
nation struggling towards freedom
and suddenly emancipated from the
shackles would not be more compar-
atively released to liberty and to
high civilization than this country
will be under a new economic order
of things, installed by a modern
banking system. Since 1851, when
under the exigencies Of the time, a
supposedly necessary condition of
action was created in the banking
world. the country has been encum-
bered with a system OF banking and
currency which has smothered its
development and hindered its prog
ress at the most vital points. There
has resulted as an accompaniment
Of this most unsoun dand inadequate
system, series of periodic intervals
OF disastrous panics, destroying hun
dreds of millions in property and en-
falling long after-periods of hard
times and suffering. Under the new
order of things created by a banking
bill, nearly correct, and under wise
administration, all this will be rele-
gated forever to the past.
Whatever defects the bill has,
they are still possible of amendment,
and this is more especially apt to be
done, because the operations will be
under control of a board, presum-
ably Of business men, who will give
earnest consideration to every de-
velopment and whose recommended
lions will carry weight with Con-
gress, especially II backed up by the
approval of the Advisory Board of
Bankers.
Importance of the Federal Board.
"Such features in the bill as de-
tract from its perfect working would
become sources of danger only I'M
der unwise central direction, but the
most perfect law would hardly be
And II must not be overlooked
that the personnel of this board will
answer the final question of success
or failure. The powers of this Fed |
eral Board of Control are tremend-
Gus. Should its character be made
political, it would set up a great
political machine, impossible almost
to abolish except as by its action it
finally brought about its own de-
struction, which 1t surely would do,
but with disaster to the whole
United States
1.-THE country looks confidently to
the President to appoint board as
reliable as the Supreme Court itself. |
"There is little doubt that prac-
tically all the national banks of the |
country will join the Federal Reserve
organization, and probably very |
large number of State banks and |
come members
Eventual Good Effects.
THE good effects of the change will
not appear at once, as the organiza-
ton of the system and its reduction |
to smooth working bases will occupy |
a considerable period.
Three great benefits will, however, |
when this is done, be brought to the |
country by the measure.
"First-The reserves, heretofore
scattered and useless except as weak
Individual defenses in case Of panic,
are piled up at a few, instead of
many points, and, under one control,
will serve as efficient protection
against disaster
"Second-The millions in good COM
mercial paper, heretofore compelled
mainly to be held useless in bank
vaults until maturity, will be rem
dered promptly negotiable.
"Third-An elastic currency is Gre
ated, intended automatically to re-
spond to the legitimate demands of
sound business, abolishing forever
the annual crop-moving money
squeeze and the alternate summer
surfeit of funds at the great cities.
Interesting to Manufacturers.
1.-THE aspect of the new legisla-
thon, which would, perhaps, most in
kerest a body of business men like
the one here assembled. is, first, the
effect upon individual manufacturing
enterprises, and, second, the result
OF the operation of the system upon
the business of the country as a
whole.
1.-THE larger influence on the indi-
vidual business Of merchants and
manufacturers will be brought about
by the arrangements for rediscount
by the banks Of their good CONNER
eial paper, with the Federal reserve
banks.
Under the present system the
only recourse of the banks, If they
need more money than their current
resources allow, is to rediscount pa