Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1914-11-16
ACT WILL make PAn|Cs
VIRTUALLY IMPOSSIBLE
Comptroller OF the Currency John
SHELTON Williams Discusses
, Now Law.
MAKES RESPONSE TO DEMANDS
Says New Currency Measure Is Essen
TALLY Democratic, and Looks to
Decentralization of Direct Control
and Financial Self-Government.

I'VE believe one Of the most val
liable and beneficial effects of the Fed
crnl reserve act will be to make such
phnics as we have had in the past vir-
tually impossible"
In drawing attention to this, as
among the more apparent benefits that
VIII proceed from tho new financial
order, Comptroller OF the Currency
John Shelton Williams points out the
grent weakness OF the banking sys-
tom which 1t supplants. In common
with practically every student of the
Federal reserve act, MIR. Williams be-
lievcs firmly that the currency system
which II provides will be elastic and
responsive enough to changing de-
mands, to lay low every fear OF future
panics.
The comptroller continues:
when there is confidence there can
be no panic. The panic is. as it's name
signifies. fear. distrust When the
people know that their financial insti-
tutions are stable, that behind them
stands Gibraltar of solid assets, that
checks will be honored on presentat ton
and that their deposits arc safe, there
is no fear or doubt. 1t is n familiar
maxim that n bank is like n woman's
reputation. likely TO be injured by the
faintest whisper When banks have
behind them substantially the COM
bined strength of all other banks, and
''fpitSo VI Sui cIICy Ic0OS 10 answer
their needs, limited practically only
by their valid values. malice cannot
invent nor credulity or ignorance ac-
cept reports to drag them down.
PURPOSE TO ENABLE LAWS OF
TRADE TO WORK SMOOTHLY
The Federal reserve acts purpose Is
to enable the natural and Just laws
of trade. beautiful and symmetrical
and sane when undisturbed--as Is the
law of Sravity-to work to their re-
suits naturally and smoothly. 1t will
provide no artificial stlmulant or prop.
1t will remove artificial barriers to
prosperity, unnecessary burdens pcrils
and impediments. 1t cannot provide
immunity from such disasters as short
crops, great fires or earthquakes, or
disorders at home or complications
abroad. 1t will, we think, restrain the
effects of these within the limits OF
the unavoidable and prevent them from
being exaggerated and wantonly mag
nifed in their effects. We cannot see
how 1t is possible with this law that
we can undergo again the dismal. man
killing, heart-racking conditions of
1907 and 1893 and other panic years.
when money could not be borrowed for
any emergency or on any collateral or
terms; or that it will hereafter be
within the power OF any group or fed
Grafton of fnanciers, however ravenous
cruel or crazed,' to force panic or
conditions to cause one: for the money
supply may not hereafter be i'm
pounded, locked up or deviatcd from its
channels; but should rise irresistibly
to the level of the necessity.
THIS new currency measure is dem
ocratic, essentially. 1t looks to decen-
tralization OF direct financial control
to financial local self-government so
far as is consistent with stability and
the general safety; to currency
which will be worth ito f,co ,.,Ina
everywhere. which will be based nm
the actual values 1t purports to repre-
sent, as well as the faith and credit
or the general government, and which