The Denison review. [volume] (Denison, Iowa) 1867-current, 1917-06-20
The Stewart Lumber Co.
with all higher prices for everything


a fixed certainty.
In the coming period of the war the
federal reserve bank system will be
tried out and it's effectiveness demon
strated in the equalization Of fates for
money in the different sections of the
country, aud for this function the re-
serve system, it is believed, is now or
will be we'll prepared. In the last four
weeks the reserve board at Washing
ton has effected plans for the working
together of the twelve reserve banks
to meet conditions specifically brought
abe Ut by the raising of the 50 0OO,0A0,-
600 Liberty loan and the sale to the
banks of ever $SO0,O0O,O0O of United
Ststes treasury certificates Of indebt-
edncss.
No Disturbance as Vet :.
u IhEs far conditions have been ne:
without disturbances of consequence.
though there is an apparent Fictitious
effort in some sections of the west
to temporarily secure better rates.
To further aid in expansion and util-
ize credit, several amendments to the
federal. reserve act are: spending be-
fore congress. one of which permits
the federal reserve banks to discount
domestic acceptances. Heretofore ac-
ceptances were limited to goods i'm
ported or exported, but the proposed
will create large new
source OF credit for the reserve banks,
and it may Re predicted that before the
war is over the federal reserve, ma
tional and state banking systems of
the United States will have learned
how to utilize every scrap of possible
credit
TO what extent the building up OF d
posts in the banks by the making of
loans Constituting inflation) may be
carried, can hardly be estimated at
this time. but the expansion should
come on rather gradually and be rea-
sonably well regulated in view of the
power of the federal reserve system.
This system, it may be noted, is not
altogether a government one, although
directed from Washington.
Reserve Bank System
One-third the members of the dir
ectOry Of the different reserve banks
is made up of the leading bankers of
the several districts, and between
them and other members of the board
there is natural business sympathy.
So long as Washington policies are
tolerable they will meet with the ap.
prevail of the directors of the twelve
banks. On the contrary, policy by
the federal reserve board at Washing
ton which should plainly suggest un-
wisdom would meet with protests and
possible rebellion at the reserve banks.
There is, therefore, reasonable safe
guard for the system Of banking that
now obtains in the country and no.
thing to suggest apprehension.
In the market for securities, the
prospect Of an increase in rates for
the railroads is occupying a rather
prominent position. The roads have
filed schedules for an increase of Is
per cent in rates, beginning July 1. 1t
will remain for the interstate COM
MERGE commission to suspend these
schedules during a further period of
investigation or modify them in some
particulars.
Doubt is Per Cent Raise
1t is ISSUED that owing to the gen.
eral desire for cooperation the com
mission may take a more favorable
view of the plea of the roads than
would have been otherwise the case,
but good opinion in Washington holds
that the full Is per cent will not be
granted. ~ &Sl#
The oversubscription of the Liberty
loan by about per cent. apf 81, 900.
100000, made greatly for public conf
dence, as did the registration of men.
But in the market technical .condi
tions caused reaction in prices. 1t
is an old theory-also an old practice.
that when all the good news is out
stocks sell off. They do so because
operators in the market see them off.
1t does not suggest any change in
values. .... .-
Always it is to be remembered that
the present is a war time and the Sc
curities market will be subject not
only to events expected but also oc.
unexpected. . ,.. s- s
, However, in spite of all the fun they
poke at the new graduates, they do