Evening star., 1916-05-03
SPEAKS IN HIGH PRAISE
OF NEW BANKING PLAN
Milton C. Elliott Believes Reserve
SYSTEM Will Safeguard q. S.,
Following European War.
Special Dispatch to The Star.

special Hlspatch to The Star.
HOUSTON, Tex. May 3.-The COM
pact, effective banking system that is
being built up under the new currency
act. in the opinion of Milton c. Elliott,
counsel of the federal reserve board
Will he the most efficient financial or
ganization to meet the disturbed and
unprecedented economic conditions
which, economists agree, will follow the
close of the war in Europe. He spoke
last night before the Texas Bankers
Association. in session here
We have reason to hone and be-
lieve. prophesied Mr. Elliott. that
whatever the outcome of this world
struggle this country will be enabled
not merely to insure it's own prosperity.
but to lend the assistance that its size
ana Importance demand in the read
justment of the worlds trade and the
reha abilitation of the worlds prosper-
ity."
Urges Banks to Complete Plan.
He reviewed the prospect as fore
shadowed by experienced economists,
urging the banks to complete the or
ganizatlon on the lines prepared by the
federal reserve board.
Bankers and economists are not
agreed as to the effect that the Euro
peah war is destined to have on the
commercial business of this country.
mere are those who feel that during
the readjustment of commercial inter.
ests Following the close of the war this
must look for a reaction and
cannot expect an indefinite continuance
or the present prosperous conditions.
mat the markets of the bellieerent ma ,
tions Will be reopened, and that compe-
tition Tor the worlds trade will make
IL dlfncult for this country to market
TO advantage its great resources: that
securities held by citizens of other
countries will be sold and will have tn
De absorbed by our markets: that fol-
loving period of commercial prosper
itE IL VIII be difficult for those who
nave shared in and enjoyed this pros-
perlty to readjust themselves to new
conditions; that plants and factories
Whlcn are now making munitions of
war ana which are supplying the bel
iserent nations with necessities will
nave their output reduced and will have
to find other fields for their activities.
Other Views Outlined,
There are others who are inclined tn
the view that there will be M sub-
the close Of the war; that connective
markets will have to be reorganized-
and that during the period of readtust :
ment of the commercial affairs of those
unfortunate nations which are now en-
gagged in this great conflict there will
continue to be great demand for our
products. that many of our factories
and institutions which are furnishing
supplies to the belligerent nations are
already operating on profts earned and
are accumulating a surplus which will
enable them to convert these factories
to other uses.
Ihe economists. however, are agreed
mat sooner or later we must face COM
mercfal conditions which are unprec-
edented in, the history of the world:
that, as one of the great commercial
nations of the world, we must bear our
proportionate part of whatever strain
there may be. 1t can hardly be denied
that any situation that may arise can
best be met by compact, effective
banking system better than by an un-
organized system of unrelated banks
The enormous banking power of the
nation should be used to advantage.