The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-04-28

was received today by the treasury
department from New York in a let
ter that gave no clue to its writer.
1t was one Of the big contributions to
the fund, but the record breaker was
one of $4,000 recently received. The
$1,000 was in $1,000 gold certificates.
s--~~~>~~~-~~-----~-~-~~-
made upon them when the war ends,
II they are to meet their obligations
IN full, without scaling or Reputation.
1t must not be forgotten in this con-
nection that millions of their inhabi-
tants viii wish to escape from such
intolerable con<itions, and we may
look for a great tide of immigration
to flow into the United States.
Following the depression caused by
the shock of war in August, 1914, has
succeeded an unprecedented condition
of prosperity, but prior to that epochal
event, business was seeking to re-
adjust itself to a changed fiscal poll
icy on the part of the nation, and the
slowing down OF the train of COM
merce had been noted incident, pre-
cedent, perhaps, TO a better condition
of affairs. This, however, is problem
atical and / viii not pursue the sub
ject further. The depression which
existed in the first half of the year
1914 was brought to sharp culmi-
nation by the outbreak Of the war,
and our financial standing at home
and abroad was put to the severest
test. These difficulties were of short
duration, however, and we showed not
only our willingness, but our ability
to meet our obligations, and thus es-
tablished the credit standing of the
United States of America firmly with
all nations Of the earth. This credit
has for its foundation one hundred
millions and more population and al
most three times the national wealth
of any other country. It is not unreal
sonable, therefore, that New York
should take the place of London as
the financial capital of the globe.
AS to general business conditions
throughout the world, it is remark
able, considering the great conflict,
that affairs go on so well. Indeed, a
distinguished philosopher has recent
ly said that "war, not peace, is the
natural state of man." and he is be-
ginning to receive many converts to
his conclusion. Let us hope that so
far as America is concerned, in this
great wave of prosperity, we win not
lose our heads, that we will not ex-
pand too far, that we will hold our
resources in compact form, so that
when peace returns, we win be mas
tiers of the situation.
/ FEDERAL RESERVE SYSTEM.
/ At our meeting held in May, nearly
one year ago, the Federal Reserve
System was ably discussed by two of
the leading men connected Herewith.
The whole matter was new at that
time, and men expressed their doubts
freely concerning it. For twenty
years or more the bankers of America
have been insisting upon a system
that would do away with CURRENCY
panics that from time to time literally
filed the land with wrecks both Of
the solvent and insolvent. But such
had been the ignorance and prejudice
of the public, led on by designing pol
iticians, that in all these years we
had not been able to save the public
from themselves. The great Federal
Reserve System guarantees that there
will never be currency panic again
in this country. The only panic that
can come is on the outside of the
bank, when credit fails. When men
have gone too far afeld in their OPP
erations, they must perforce liquidate
down to the point of safety. In this
emergency the Federal Reserve banks
are designed to step in as a shock
absorber, and put springs under the
jolting vehicle.
Bankers must not look for profit
! directly from their investment in
stock Of this great institution, but
; must have a broader view, which is
that to look for dividends from this
] stock is to force competition upon
| themselves from this source, a thing
J entirely outside of the true function
of a reserve system. No great meas
ure of this kind can be passed. and
J have it work perfectly in the begin
J ming. The railway engine of today
is the result Of long and arduous la
bors on the part of the mechanic and
: the mechanically inclined. See how
!. far it surpasses in power, strength
and speed the early designs. In like
manner we must perfect the reserve
system, until all the banks of Amer.
ica, including state banks and trust
companies, viii not consider them
selves to have "arrived" until they
are eligible 70 enter. This is going
! 10 be the result, so instead of gre
senting an attitude of antagonisn
let US cooperate.
81 In thi. connection, have two sug
> s,esfions TO make. One is, that che
f wheels Of the rev machinery be no'
clogged with rart Of the old system