The Washington herald., 1917-11-12
The RcserYe Hank Law.

Men over the country who stood
inherently opposed to the Federal re-
serve bank bill, when 1t was before
Congress, now are its wdrmest de-
tenders. The belief of most men and
most interest is, in fact, that this
measure constitutes the greatest step
of Industrial preparedness ever taken
in this country. and that without
II at this time We would indeed be
in a serious way.
The act appears to be standing
out strong against every condition
against which banking legislation
must be tried. Thus far it has been
q financial Gibraltar and the conf
dent belief of Congress is that it will
continue to be.
A campaign to bring State banks
of the nation in under the Federal
reserve system is likely to be made
in the near future. In fact. in a
number Of the States at the present
time this very campaign Is under
headway, and in its progress MEM
bers OF Congress who are now home
are taking the keenest interest.
The one barrier found to favor
the State banks appears to be the
guaranty of deposits system. The
Federal reserve scheme does not yet
contemplate that, although there are
signs that some day this very i'm
portant link will be forged by Con-
gress. When it is the national in
stitutions will be on a parity with
the State institutions and 1t will be
exceeding easy for the State banks
to Join the Federal system.
Democrats who look upon this pro-
tective system with some misSivinS
need not worry. The principle was
first indorsed by their party in a
number of the States. and in some
Of the States where it finds its most
successful operation at the present
time has been administered by Dem
ocratic officials. The party. there
fore. Is in a position, as one of the
leaders said the other day, where
it can propose and carry out the
guaranty principle in deposits.
Whether II will be done at the pres
ent session, of course is hard to tell.
for II is expected that nothing will
be attempted then that does not have
the tinge of war Legislation and for
which there is no particular sharp
cry from the standpoint of making
our battle lines more effective.
Farmers of the West who cried
long and loudly for a reform in cur
rency matters are elated over the
provisions which allow the discount
ing of cattle and farm paper on a
parity with eastern commercial pa
per. This feature was introduced in
the la wen route through the Sem
ate and is regarded by the West as
an improvement over the original
form of the bill. 1t was one of the
points upon which there were sew
eral sharp skirmishes, and inciden-
tally one of the points upon which
there appears to be no disagreement
whatever at this time, for the scheme
has worked out nicely.
War Against Austria.
Will We declare war against Austria
at the regular session, many men are
asking. Men who know how things
are done know that 1t rests entirely
with the President-and they point
out that IL the President ever thought
that step was necessary he would
have proposed it long ago and would
not wait until this late hour to
take it.
Whence We assume that war will
hot bc ueSldTtu against germany >
ally unless something changes radi-
cally in the next two weeks. The end
toward which the President is work
ing does not justify a war declaration
on the part of this country, it is said
on high authority. so Congress may
well rest content to occupy itself, dur &.
ing the Forthcoming session, with
passing legislation needed to aid the
battle against the Huns.
Our allies, at the conference bout
to be held abroad, will be given an
opportunity to hear Americas side
OF this very point. The commits
sions which have been here during
the past summer have been informed
abundantly on this point themselves,
but when it is threshed over again
at the European gathering they will
nave another chance to get Amer
ica's later view of the same subject.
The discussion of this phase of our
relations abroad. however, will be
an incident to this gathering and not
In any sense the main issue. The dis
CUSHION VIII not be as acute, even. a.