The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1916-10-02
lated to the period Of circulation.
Federal Reserve. System.

EAted to the period OF circulation.
Federal Reserve. System.
There were on July 30, last, 1879
national banks. with q capital and
surplus of $1.797, 43S.000, which were
members OF the new system, and
about 22,460 state banks, with a
capital and surplus of $2.530.700, 900,
which were not members of the sys.
tenn. besides large number of trust
In all the commercial and
Industrial countries Of the world, great
and small, but ours, q single great
bank Of issue stands at the head of
their banks and monetary systems,
while we have II 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
50 far, after being in operation since
Nov. 16, 1914-a period of one year
and nine months-only of the IL
banks have paid any dividends. and
these 5 only total dividend of
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 Clearinghouse certificates,
and largely by the currency taken out
under the Aldrich-Vreeland law. So
far the new system has been mostly
a burden to the member banks. Elk
cept in the five cases mentioned, they
have received no dividends and have
lost the 2 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
nomdc system. The general purpose,
it was declared, was to repress, reg
ulate, and control all trusts and
monopolies 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 it's
powers and duties, and for other pur-
poses," introduced In the house April
10, 1914.
Second. A bill ito 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 it's transit through the two
houses the Clayton anti-injunction bill.
Third. A bill Ito amend Sec. 20 of
an 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. 1t passed
the house, came to the senate, and
was referred to the committee on
interstate commerce. This commit
tee on July %, 1914, reported it back
to the senate favorably, with certain
amendments. But by this time a
change had come over the spirit of
the Dreams of the Democracy, and
this, the best of the three bills, was
left to languish and finally die an
ignominious death.
The trade commission bill became z
law on Sept. 26, 1914. It created a
commission of five members, with a
yearly salary of $4,000 each, and
with a secretary at 4 salary Of IS 900
a year.
Prosecution Of Trusts.
For a number Of years there has
been under Republican administra
ton a pretty vigorous prosecution OF
various big trusts and monopolies.
This was not relished by them, and
a hue and cry went up from them
and their friends throughout the coun.
try that it was difficult for business
interests to know just what they
could and could not do under the
antitrust law Of 1890, and they Wig
orously, through the public press AID
otherwise, clamored for relief At
tempts had been made during the
last administration of President
Roosevelt to pass a law to relieve
them against what they conceived to
be the harshness of the enforce
ment of the antitrust law. This
attempt failed, but they renewed their
efforts, and the general impression
among the public is that the trade