Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1916-10-11

ated to the period Of circulation.
Federal Reserve system.
There were on July 80, last, $40
national banks. with a capital and
surplus of s1.797, $4,000, which were
members OF the new system, and
about 400 state Danhs, with
capital and surplus OF $3.50, 100000,
which were not members of the sys
tenn, besides a large number Of trust
companies. In all the commercial and
industrial countries of the world, great
and small, but ours, a single great
bank of issue stands at the head Of
their banks and monetary systems,
While we have 10 heads for part
only of our banks. The reserve banks
have added no new banking capital.
Their capital and reserves have all
come from the member banks. And
esAsCA IL OPSA etIAOAa lAASS
Nov. 16, 1914--a period Of one year
and nine monthsonly 5 of the 70
banks have paid any dividends, and
these only total dividend Of 6
per cent. -.
The new system had nothing to
do with staying the threatened panic
of 1914. That panic was stayed
partly by closing the stock exchange,
partly by clearing house certificates,
and largely by the currency taken out
under the Northumberland law. So
far the new system has been mostly
burden to the member banks. Ex-
cept in the five cases mentioned, they
have received no dividends and have
lost the per cent interest on their
reserves which they formerly secured.
The system has added no new capital
or new wealth to our country. Our
prosperity and our abundance Of
money has come from our immense
exports and the high prices result.
ing from the European war. Part OF
the proceeds of our exports have been
invested in foreign bonds, but the
great bulk of it has found its way
into the Golfers OF the banks and the
circulation of the country.
Other Democratic Legislation.
In the spring of 1914 the admins
tration gave out, through the public
press and otherwise, that triology
Of bills would be introduced and
passed to remedy most of. the ills
and wants of our industrial and eco.
nomic system. The general purpose,
it was declared, was to repress, reg.
ulate, and control all trusts and
monopoles and all the great business
interests Of the country. These prom.
Used bills. were afterwards introduced
and turned out to be as follows:
First A bill ito create an inter
state trade commission, to define its
powers and duties, and for other pur
poses,'' introduced in the house April
10, 1914.
T. Second. "A bill "to supplement ex
listing laws against unlawful restraints
and monopolies, and for other pur
| poses.'' introduced in the. house April
IA, 1914 This bill was commonly
called in its transit through the two
houses the Clayton anti-injunction bill
Third "a bill "to amend Sec. 20 Of
Ian act to regulate commerce, to pre-
vent overissues Of securities by car
riers. and for other purposes" intro
duced in the house May Is, 1914. The
purpose Of this bill was to regulate
the Issuance Of stock and securities
by railroad corporations, and was
really the most important and most
valuable of the three bills. It passed
the house, came to the senate, and
was referred to the committee or
interstate commerce. This commit
Itee on July 80, 1914, reported it back
to the senate favorably, with certain
amendments But by this time 9
Change had come over the spirit Of
1.-The Dreams Of the Democracy, anG
this, the best Of the three bills, was
left to languish and finally die a.
!ignominious death.
II II
law on Sept. 26, 1914 It created {
commission Of five members, with {
yearly salary OF $4,000 each, ant
with secretary at a salary Of 5000
a year.
Prosecution Of Trusts.
| For a number Of years there has
been under Republ ican administra
ton q pretty vigorous prosecution o
various big trusts and monopolies
This was not relished by them, ant
Ia hue and cry went up from then
and their friends throughout the coun
try that It was difficult for business
interests to know just what the.
could and could not do under thu
antitrust law Of 1890. and they Wig
orously. through the public press ant
otherwise, clamored for relief. at
tempts had been made during th,
i 10 = ~ : H,,a q. u ~ &4rYo ~ Drocid an