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

Alden Anderson, president or 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 Actsand It's 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 tinstitu-
lions and should have the same feel
ing toward the banks, as they are I'M
der government supervision.
IN 1907 the people of the country
were forced to crisis" stated Mr..
Anderson. Conditions In all walks
Of life were changed and business was
at a standstfli. The banks worked
together and issued paper that proved
to be medium Of exchange which It'd
ed conditions over, from supposed
panic to normal state of affairs
In touching upon the federal re-
serve law Mr.. Anderson said that the
large New York banks at first oppos-
ed the measure, but since its estab-
1ishment 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 win improve
the business of the country.
when the matter of banking
system was first mentioned the FEEDER.
al government thought of establish
fng central bank" he said. "This
was found to be Objectionable to
many and it was finally decided to
establish IL reserve banks. When the
bill was first introduced It was called
the Aldrich-F reeland 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-oficio mem
Bers OF the government, the secretary
Of the treasury, the secretary Of agri-
culture and the comptroller of the
treasury There .is-no politics mixed
up IN the board, as eight out Of nine
of the members In ssa 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 ct 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
S357, 531, 900 which proves that the
system established u.s. 8 success from
every standpoint u We are hearing
many good things about the system
and with the array of banks organic
ed. as they are we may have bush
ness depression, but we shall see no
great panic under the present sys-
tenn
At the speakers. table were mum.
Der of prominent businessmen includ-
ing Herbert Fleishhacker, president Of
the Angio-E Paris bank of San
Francisco; L. Tenney Peck OF the
First National Bank of Honolulu; DR..
F. Frankenheimer Of San Francisco;
8. Awoki, manager of the Honolulu
Yokohama Specie Bank; C. H. Cooke
of the Bank Of Hawaii; w. f. Frear,
e. T. Spalding of thu Bank of Honolulu,
and A. w. T. Bottomley of Bishop &
Company.