Pine Bluff daily graphic., 1916-11-04
Senator Owen of Oklahoma Tells Local Business Men
 How Law Aids.
DECLARES NO. 13
 SOUND AND SAFE
prOnosed Initiative and Referendum Measure, He Says, Similar to One in Oregon. Placing Law-Making
 Power in Hands of People.

United States Senator Robert l.. Owen of Oklahoma yesterday told local business men, at a luncheon talk to trustees of the chamber of com meree, at the Hotel Pines, that the federal reserve act. a Democratic measure, was primarily responsible for the present very great wave of prosperity which the United States is enjoying.
 If was not campaign speech, al though necessarily senator Owen remarks touched upon many ques- tons whch are essentially of con- siderable significande in a political way. He answered, without making direct reference thereto as an answer, Republican charges that the present prosperity is due entirely to the war in Europe, and he made the plain as sertion that the passage of the federal reserve act broke the political power of Wall street and the New York banks, and put an end to that ''in- visible government which has con- troled the desUnies of the nation under Republican administrations for years past.
 Senator Owen talked nearly two hours, tho the time passed quickly, his talk being so thoroly interesting. It was forceful, virile. and replete with statements of fadts-names. dates, places and amounts, as the case may be, constituting a very large portion of his remarks. Then he answered questions. these relating to Wlls0ns chances to carry Western states, his opinion of the Adamson S. hour law. and to proposed amendment No. 13, the initiative and referendum measure, winch will come before the voters of Arkansas in the elections Tuesday
 How Reserve Law Helped.
 senator Owen, in his discussion of the federal reserve law, said it has been the basis of very great pros perlty prosperity that is continuing TOW, that is just beginning we'll, and mat promises to continue almost in- dehnltely. It is prosperity based not on high values of farm products, nor short crops, nor great demand TOT war munitions, but primarily that IS dependent entirely upon the re- serve bank law.
 when the people of the country 1ound that the government was back or, and responsible for, the reserve panks, they brought out their hoarded millions, and placed them in the banks. The banks loaned their money freely to the business men, as they had been lending freely to the stock ana pond brokers, being able to do this because they could, under the re- serve law, easily rediscount their commercial bills. The money thus loaned went into the banks as de- poslts' and was used in the very great expansion of the business of manu- recurring a thousand and one pro- States.
 More than $3,5oo ooOO,O has been invested in new enterprises since the 1ederal reserve law wenA into effect" ne said. "Over $e,5OO,OO0, ,OOO is the increase in bank deposits in that time. ;Maastreets's report shows that clear 'nss Tor a year were $325,O 100000, ,000 and remember. gentlemen, this was py clearlng banks only, to the num- per or about 300, while there are per maps lS,GOO or 10000 banks, national, state and private, in the country, so .nat the total clearings can be ap- proxlmated safely at $5O0.0O0, ,000,0O0."
 On Par With Germany.
 lhe senator said he could see but une difficulty that is to be faced, and .'at VIII come when the United States manuiactures a greater quantity of T TTroducts than it can itself consume. men this country will be forced to seek the markets of the world, for it's sX3cess, Xsess, There again the federal re-
 ee act will be of great assistance, ;"s'' ueeause the act provides for the es- .aonshment of branch banks in for e.sn countries which are customers b p' tae United States, and those branch sa uaiKs can arrange the long time loans .% so necessary to the business men of nose countries.
 heretofore, the United States Iould U not compete with England and uaetmany for the trade of South mllerlca, because England and Ger amy many mad a system of finance which II,.owed Ian their manufacturers to grant