The Birmingham age-herald., 1915-07-10
The Federal Reserve System

w. P. G. Harding contributes to this weeks Baltimore Manufacturers Record a paper on the advantages of the federal reserve, in which he sets forth the cooperative features of the federal reserve act and the broad powers given to member banks ito meet every situation likely to arise" '"
 The reserve board is strong in it's personnel, but MT. Harding is easily recognized as it's best rounded member and the member with the largest de- gree of initiative. Therefore it is that he is in constant demand by financial and commercial associations for ad- dresses and by the press for signed articles. And whatever he says on any subject relating directly or indirectly to the banking situation is not only informative, but is authoritative. In the Manufacturers Record arti- cle MT. Harding, after stating that the federal reserve act provides for a system of flexible currency and of modern commercial banking, reviews the principal events of the financial world in recent years and explains some of the extensive powers of the reserve board. Also he points out some of the constructive possibilities of the reserve system. MT. Harding says:
 The present abnormal trade bal 1 ances in favor of this country and 1 the large excess reserves held by the banks would probably under old con l dtions stimulate expansion and spec ulation. This danger is mnimized however, under the new system as the influence of the federal reserve | banks upon financial conditions is l great, and the power of examination given to them over their members | acts as a healthy restraining infiu- l ence.
 The world war has created many 1 new problems, and normal conditions | cannot be expected until peace is re-
 stored, but the United States is, be- yond question, in a stronger financial
 position now than ever before in it's l history, and has today greater finan- l cial power than any other nation. Re- cent developments have shown that | our position is even stronger than had j, been supposed, in that the amount of securities held abroad, based upon | figures carefully compiled by MT. F. l.. | LoTee, is shown to be less than half of | previous estimates which had been | supposed to be approximately correct 1 The ability of Europe, therefore, to | draw gold from us by the sale of these securities in our markets-an | old-time gaboo-may not be regard l ed as disturbing factor, especially | in view of the heavy trade balances in our favor.
 | The federal reserve system is es- l sentialy a cooperative one. The | power of cooperation in achieving re- suits was shown very forcibly last
 fall, when several intricate and ap- 1 parently hopeless situations were sue ] cessfully worked out in a short time. 1 Owing to our insufficiency of ocean | transportation and to the restrictions imposed upon commerce by the nations l at war, some inconvenience may be ex-
 perienced, perhaps, in marketing our
 crops this fall but intelligent compre- hension of the problems involved and the strong position of this country
 as the worlds treasury and store
 house should make the solution com paratively simple. Through the fed
 eral reserve system and the banks
 of the country ample funds can be provided to take care of staple com modities awaiting transfer from pro- ducer to consumer, and as no com plications seem likely to arise that 1 have not already been anticipated it
 appears that our people should be
 able to await with patience and con-
 fidence the great forward movement
 which is sure to come when once is
 begun the world-work of reconstruc-
 ton and reha utilization which must fol-
 low the re-establishment of peace. MT. Harding always writes witl
 clearness and there is usually fin
 note of optimism in his message. Hi
 concluding remarks as reproduce'
 above have the true optimistic ring
 Editor Richard H. Edmonds of tn