Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-06-17

thlhgs ne said that this is not war
IN the proper sense of the word. but
II IS rather an attempt Of the Civilized
world to prevent brigandage. And
secondly he pointed out that this war
cannot DC brought TO an end in terms
mat have hitherto constituted peace
treaties for there is no responsible
party on the other side with which IN
bargain. He showed that the war
cannot end until the power of the or
ganzation conducting this brigandage
is broken and that less than a com
pete victory we dare not accent for
the sake of those who come after us.
Edwin G. Merrill of New York
The next speaker was Edwin G..
Merrill Of New York. Who in his ad
dreSS spoke Of the changes in bank
ing that have been brought about by
tfe war tie spoke in part as follows.
The war has brought about changes
in banking that have been profound
and remarkable. The legislation that
brought into being the Federal Re-
serve System was not. of course, due
70 the war. but the installation and
development OF that system under
stress of war has been a remarka Bile
achievement. 1t is hard to imagine
how this country could have handled
! the financing necessary for this war
If it had not been for that system;
perhaps it may be called the one sue
cessful step toward preparedness"
! that was taken prior to 1917 I admit
That a good many of us in New York
did not like the way the system was
forced upon the National banks-pos-
sibly some Of YOU here felt that YOU
might have preferred a voluntary sys-
TEN Of enlistment rather than con-
scription so far as the banks were
concerned. but that may have been
because none of US realized that what
| Capitalization of power for war pur-
poses really meant However, when
events disclosed the immensity of the
| financial problems put straight I'd to
1 us by the war, the state institutions
which had not been forced into the
system fully realized that they could
! be of no help to the System and that
the system could be Of help 10 them
and substantially all of the larger
state institutions In New York are
now members and are loyally co-ope--
atins with the System in every wav.
Yet even in wartime. 7 see no reason
why we should be entirely in accord
with every plan that is advanced BY
those az the mead of the Federal Re-
serve system, There are two bills
pending row in Congress which / IN
derstand have the backing of the Sec
rotary Of the Treasury. the Comptrol-
Ter Of tho Currency and many Of the
Federal Reserve Board; one for the
Guaranty of bank deposits. and the
other 70 give Trust Company powers
10 National Banks. even IN States
where there are no specific laws
awainSt II.
AS TO the guaranty of bank deposits
/ hardly think it would occur to am 81
YOU here in this room that it would I've
disloyal to the federal reserve svsteu, to
oppose such legislation as unsound a I'd
unsafe As 70 the second. I imagine
that those Of YOU who are identified with
national banks are not likely to concern
yourselves very much about it, But il
this bill is passed there is more at stake
, than the mere granting of trust compa-
ny powers 20 national banks; it is avow-
eddy a step taken by the Federal Re-
serve Board in a plan to do away with
all systems Of banking institutions
chartered and protected by the states.
r Is apparently their desire to have only
one type of banking institution In the
Tinted States, and that type KIND OF
financial department store, combining
the functions of national bank. trust
company and savings bank. DO you