Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-11-25
OlU SN>'ri:M CREATED
IN\NOin\ni.E plFEICIIrn:S

Vicr.iu;: the FIRST aud second foan
opCrnti ions generally as i bauS INA. mat
ter. without reference 10 the local dc
;ailS ot selling ,Uu Distributing the Sc
ruritieS themselves. there can I've ~
doubt OF the efficiency and service Of
thc Federal reserve system. MOI only
has there b"vU no disturbance ut amy
Kind 10 interest rates beyond the nee
c>Sarily gradual increase which toll
lows upon the Withdrawal Of such grrat
quantities OF funds from the market.
hut Tive process has been accomplished
with wonderful technical ca"n. IL
former times undo, the old suhtrcas-
ury system. the withdrawal OF sub
Scrihcd funds III vHiiuuS parts Of the
country az even the operation" Incl
deui 10 the transmission OF these funds
from ono Part ~ the country 10 am
other. created unavoidable and serious
difficulties. duo TO shortage or plethora
OF money at various points. while cN-
change rates AMI conditions were Sc
rioIsly disturbed
All this has been avoided through
the orcrAtiou Of the central gold set.
element fund. conducted under me a.
pcrviSion Of the Federal Reserve Hoard
at Washington. i:v the use Of this
fund the thousands and millions OF dol
lars inv olvrd in curr"Nt government
operations havc rocn received III tho
form Of local bank credits. and N
point where government payments had
to he made
rs these pavm"uts have h,.ru Nncct-
cd local banks a.; those places have
increased their deposits and the DO
cccdS, have .ciin been rraiuIllN shift
81 to different; parts OF the country
where production and manufacture
were III progress and whcrc payments
for material and labor had eventually
10 hc-- liuuira :"i. Little money las
passed from m. part Of tn" country
to another under this system. and tho
matter las boon smooth wci Einr. CT
fcrtivr. AND S1ti.farjury thro"c ho;,i.
All tins Is now fully acknowledged.
ard cvcn those who ut IL" hcS in? irr
doubted tho workable qualities Of ~.
Federal reserve system now. in most
cases. freely concedc hem
This is not time III the worlds his
tory when predictions can safely he
/ made very far in advance. ono such
prediction that seems safe is. however.
that tho Federal reserve system viii
continue 20 he Of invaluable service TO
tho nation. and that the necessity for
its service will grow greater and
greater as time goes on and tn" fnan-
cial pressure OF the war increases. as
il must. When tn. war is over there
Will hc many financial rcadjus tmcnts.
both national and international before
even our own industrial system and
that of the world at large can recover
it's equilibrium.
Much would have 10 be done in the
way OF extension and Improvement OF
all banking methods. and much in the
direction of the further expansion and
strcns thennS OF our international
trade. Without the Federal reserve
system IL would be difficult indeed to
accomplish these results; with il they
VIII or easy as the tremendous
strain which Tho financial world has
been undergoing Will naturally permit
We may look with confidence and re-
iianc. TO tho future of the Federal re-
serve system and its service To the
community. expecting that /; Will be
able 10 mitisat. difficulties by which
( this nation, in common with others is