Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-01-28
RESERVE BOARD
MAKES A REPORT
Tell of Accomplishments Of
the New Bank
So System,
PRODUCING RESULTS
Admit However That Many
Defects Remain to BE
Ironed Out.

WASHINGTON, Jan. 27,-The first
report Of the federal reserve board
covering the Developments which pre-
ceded the opening of the II regional
reserve banks last November and the
two months in which they have been
i'm actual operation, was sent to con
gress today. 1t announces that note
worthy results already have been ac-
rompilshed and that the system now
cannot be regarded as experimental
in the sense that there Is any uhcef-
tainty as to the outcome NO leglS-
ation is asked for, the board devoting
its report chiefly to an outline OF now
the new system has strengthened the
nations financial situation.
Less than five months have
elapsed" " says the report since the
introduction into our financial sys-
tom Of the most far-reaching change
that has been made in the field Of
American banking since the passage
Of the National banking act. Less
than two months have gone by since
the federal reserve banks actually
opened for business. The system,
however. is in operation and has al
ready produced results Of the most
noteworthy character
Much to Be Done.
There is much yet to be done. but
the work cannot be regarded as ex-
detrimental in the sense that there is
any uncertainty it will be possible to
develop the fun capabilities and re-
sources of the federal reserve system,
us pOtentialities are vast and should
contribute immeasurably In the fu-
ture to the solldity stability and tieX-
ibillty OF the American credit system,
hf,r N
suggests itself and must be frankly
faced. What is the proper place and
function Of the federal reserve banks
i'm our banking and credit system? ON
The other hand, it Is represented that
they are merely emergency banks TO
he reSOt ted to for assistance only IN
time Of abnormal stress while on the
other it Is claimed that they are in
essence simply additional banks which
should compete with the member
banks especially with those of the
greatest power. The function Of a
reserve bank is not to be Identified
with either of these extremes. al
though occasions may arise when
either Of such courses may be i'm
peratte. Its duty plainly is not to
await emergencies but by anticipa-
tion to DO what it can to prevent
them.
$50 also if, at any time, commerce,
industry or agriculture are, in the
opinion Of the federal reserve board,
Eurdened unduly with excessive In
tercst charges, 1t will be the clear and
Imperative duty OF the reserve board
acting through the discount rate and
,pcn market powers to secure q wider
diffusion of credit facilities at reason
able rates.
Must Wait h Test.
"1'he ready availability of its re-
sources is of supreme importance in
the conduct Of reserve bank Only
then will it constantly carry the prom
Use Of being able to protect business
against the harmful stimulus and con-
sequences Of ill-adyiscd expansions of
credit on the one hand, or against the
menace Of unnatural restrictions and
unnecessary contractions on the other,
with cShorbitant rates Cf interest and
artificial stringencics il should at