Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1916-01-20

Nlwen-ttfaAa Dill Ave never claimed 4
could be a penaeca for all the Ills
brought on NY bad currency laws. nor
will its avowed enemies and there are
some make it bear the burden Of what
ever ills stisl remain nnhealed: for
they acknowledge the defects Of the new
statute can be remedied BY the enact
ment OF future legislation. The new
laws efficiency has not yet been quito
an emergency test, but as 1t may DO
judged BY It's probable strength il fli-
ture times Of stress, Il Is said by au-
thorities 70 b. about seventy per cent
perfect.
We desirGlto quote Hon. Charles i.
Governor OF the Federal Re
sevre Board Is 70 the principal ele-
ments constellation this Act. In an
address before Convention Of New
England bankers he stated as follows:
I'VE had under the old system 1900
Independents banks and 1900 depend
ent reserves There was no co-opera.
ton among banks. Under tho old
system they were like an army going
into action, an army OF individuals.
without a single company, battalion
or regiment. But all that has been
done away with by the Federal Re-
serve System. Under the old Law, III
in times Of stress, the reserves we're
hermetically sealed up to the business
men, who could only look on The re-
serves In the banks-the national
banks Of The United Statso, but could
not secure any beniit from their use.
They were almost IN the position Of
man dying from starvation looking
through q plate glass window at every
delicacy IN the way Of food, on which
he reads an announcement: This
food is for your express benefit You
may look at il, you may enjoy tho
delicious fragrance, bpt under the cir.
can you eat particle OF
it.t~
Now, that was tho condition ~ The
reserves before the enactment ~ ne
Federal Reserve Act In the pauie u
1907, ia ono OF the sorst stages ~ that
panie, there we're over 500, opO. 900 81
excess reserves ia the banks drought
out the United States. II these reser.
yes bad been co-ordigated, We should
have had no panic at all. The bank
having 70 take care Of thcinsclf, lhey
had 70 fight for their ives and lei lhc
divil take the hindmost, Be hindmosi
generally being Il cir poor castmers.
And in plllng UP their reserves, tbes
bad 10 call loans and refuse to mako
ncw loans; and The moment that thu
hanks began 70 hoard money chat vas
Tie signal for boarding BY the indi.
yidunls.
The Federal Reserve Act has madr
dead commercial paper fairly CULVER
with life The bank can nos have Is
cake and ess Il too. II can loan Isl
funds and take commercial paper, and
yet thai commercial paper i gold IN
that the bank has merely 20 step
across The street to tho Federal Re
serve bank and there Il will be turned
into gold or cash credits on demand
Fnrlbermore, when you take into
the power over discount
rates, you viii see what Tremendous
pomcr the Federal Reserve BANKS and
Tho Federal Reserve Board have Ia
regulating the Gov In and out 81 Die
United States ~ the precious suosals
u has also prtssided system ~ elias.
tic currency Wehave power 70 Issue.
to-day practically 100 or 800 millions
~ Federal reserve notes, II there werr
any possible necessity therefore.
The Federal Reserve Act Il very
long and somewhat detailed document,
and Il Is not easy 70 extract all The es.
sentiais from Il from casual eading,
but the underlying principles Of that
Act are simplicity itself Tho country
Is divided into twelve districts. and
zach distrirt contains from 800 70 I0i
national banks. The national banks
Ia each district form q nes bank, call
ed tho Federal Reserve bank. The
capital Of these Federal Reserve hanks
varies from sJ,0tD,Do0 70 S2D. 900. Co.
So you have these twelve Federal Re-
serve banks supported BY The national
banks and the State banks.
CONCLUSION.
I'VE arc encouraged. We arc con
hdeni Of orr future. These ara strong
and certain Indication Of tho loyalty
and corporation from those We serve
Already We may see the bright CLEANS
streaking through IN shafts OF silver.
The old year has become part 81 his.
tory the dead past, while 1916, new,
fresh, vigonros, Is a living Issue, full
of hope and promise let ns show
oGr appreciation as nation, al q
time when ther9 Is so much stress aud
struggle in foreign nations. May va
understand that only through the
grace Of The Master have va been
spared from lse horrors 81 war, and
keep ever before us the knowledge thar
only through His grace may We live
in peace Joy and prosperity through
out themonths TO come.
We see indications pointing ip IN
dustrial and commercial revival. Our
large crops. our steady growing OK.
port trade, our banks sound and
equipped with system better adapted
10 mercantile and commercial needs
tlfan before there is surely abundant
cause for confidence. But there are
reasons thai appeal even more perts
nently 20 the Individual, thAN commanl-
", the nation, We are enjoying tho
ftat4nYn ami f4f4uatkx. ~ $50. -. sas.f.a