Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-11-29
new BANKINGLAW
MAKING PANICS
Things OF PAST
Alden Anderson, Coast Banker,
Talks of Benefits of Measure
at Commercial Club

Alden Anderson, president of the
| California National Bank Of Sacra-
mento, was the speaker at the Com
mercial Club luncheon today. Mr..
Anderson, who is one of the direct
ors of the San Francisco Reserve
Bank, chose for his topic THE Fed
eral Reserve Act and Its Result"
opening his talk Mr.. Alden said
that the public should not look upon
banks of the nation as private con-
Germs, as the banks are the mediums
of prosperity. He said that people
look upon the postoffice and transpor-
tation companies as public institu'
lions and should have the same feel
ing toward the banks, as they are un-
der government supervision. III. -.
I'm 1907 the people of the county
were forced to crisis" stated Mr..
Anderson. Conditions in all walks
of life were changed and business was
at a standstiH. The banks worked
together and issued paper that proved
to be a medium of exchange that It'd
ed conditions over from a supposed
panic to a normal state of affairs"
In touching upon the federal re,
serve law Mr.. Anderson said chat the
large New York banks at first oppos-
ed the measure, but since its estab-
lishment they have found that condi-
tons have improved. Many of the
state banks were also opposed to the
law but are gradually realizing that
the Federal Reserve Act has brought
about a condition that will improve
the business of the country.
when the matter of banking
system was first mentioned the FEEDER.
al government thought of establish.
ing central bank" he said. This
was found to be objectionable To
many and il was finally decided to
establish IL reserve banks. When the
bill was first introduced it was called
the Aldrich-Freeland Bill At present
there are nine directors in each bank
and there are IL banks scattered
throughout the country Three of the
directors must be identified with
some bank. Three others are select
ed from outside the banking world,
and three are appointed by the feder-
al government.
"The head Of the Federal Reserve
Board consists of three ex-ofacio mem
bers of the government, the secretary
of the treasury, the secretary Of agri-
culture and the comptroller of the
treasury |ere is no politics MIXED
up In tn y, as eight out Of nine
Of the ne jim SsE Francisco are
Republicans. and they were not picked
out for political reasons.
The reserve on deposit at the San
Francisco bank exceeds the amount
on deposit at the Bank Of France by
more than one million dollars. There
are funds on hand now in the Federal.
bank at San Francisco amounting to-
$685., $4,000 which proves that the
system established Is success from
every standpoint We are hearing
many good things about the system
and with the array III banks organic.
ed as they are, We may have bust.
ness depression, but we shall see no
great panic under the present sys-
tenn" !
AT the speakers table were q mum.
Der of prominent businessmen includ.
ing Herbert Fleishhacker, president of
the AngloL London Paris bank Of San
Francisco; L. TenHey Peck of the
First National Bank of Honolulu; DIR.
F. Frankenheimer Of San Francisco;
s. Awoh, manager Of the Honolulu
Yokohama Specie Bank; C. II. Cooke
of the Bank Of Hawaii; w. F. Frear,
e. l. Spalding of the Bank OF Honolulu,
and A. w. T. Bottomley of Bishop &
Company. s