El Paso herald. (El Paso, Tex.) 1901-1931, 1919-12-31
]. s. To STOP
SPECULATION
Federal Board Puts Check
Rein on Banks Over
borrowing.


the-vrnr stunt and The federal re-
serve system stood the strain.
The western and southwestern
banks are in excellent condition.
with piles Of reserve. Dallas for
instance, has IS percent reserve
As rapidIv. however. as the retail
ers of the west and south who sold
tremendous stocks OF goods during
the holidays, begin TO pay their east
ern balances the flow OF money east
ward viii begin
Money is fully expected by the
federal reserve board to be easier In
the month Of January. But that does
not mean that the count rate viii
be lowered or that advances to MEM
Der banks viii be resumed in I'M
limited quantities.
VIII Take Up Slack
It does mean that the opportunity
viii be at hand TO take up the slack,
the outstanding federal reserve notes
and other credits which have been a
drag on the situation
Much good Is expected by the fed
eral reserve board to come from the
operation OF Edge law which would
permit export organizations to be
formed TO finance exports.
The public generally may not
realize that the United States
has a trade balance in its favor
OF nearly LuEEG uAlAAum uuAAlEan
and yet + shipping out gold in
unprecedented bulk
This means simply that American
exporters have been selling to Eu-
rope on credit and that America Is
paying for her own Imports In gold
in the hope Of stabilizing the eI-
change market But while that big
trade balance continues. American
concerns are drawing heavily on our
mH IN
head and other expenses These
loans are a serious drain
How long can they continued
not much longer.
And Europe must get on her feet
again in order 70 begin paying her
bills 70 America IL would be a SER
ious thing for America II the bottom
dropped out OF European affairs and
it became apparent that Americans
could not hope TO get their money
for outstanding bills and that pro-
duction would have to be curtailed
because Of striugency Of credit
Designed to save Country
The Edge law is designed to save
the country TO a certain extent from
that particular situation Senator
Edge may not have Intended 10 build
up a public sentiment for the peace
treaty by his proposal 70 distribute
foreign securities 10 the American
people, but every practical argument
for protection Of American invest
ments in Europe is bound 10 arise as
soon as the public begins buying in
large quantities, the investments Of
fered by the new export finance or
ganization-
II. Instead OF the few large
business and banking concerns.
the people generally begin to ac-
quire credit paper and securities,
that depend for their value on
the maintenance Of a political
equilibrium. their Interest in
Europe Il expected 10 Increase,
and pressure upon congress for
m early definition OF Americas
participation in worlds affairs
viii come 10 the surface.
There seems TO be no question OF
The Judgment Of federal reserve Off
Gals that America is wandering her
financial storm very wei. but that
she would be immensely relieved IL
me treaty OF peace were in operation .
and the moral protection OF orderly
government in partnership with each
lther could be thrown around the
export and import markets
me nation has got through the
Shrlsrms season with its eLtraordf-
nary demands on the pocketbook In
excellent fashion and the prophecy
IN every side here is one Of optimism.
coupled with expectation that the
reaty Of peace, when ratified. will
'e a stimulating factor TO credits and
world business - Copyright. 1913.
The FL Paso Herald.)