Pine Bluff daily graphic., 1920-08-17
NO CAUSE FOR PEsSIMIsM.

about predicting panics and other dire happenings in the financial world of the United States in the near future, may find food for 1 thought in a statement just issued
 by John Skelton Williams, comptrol-
 Ter of the currency.
 In his statement, Mr. Williams l calls attention to the facts that the 1 national banks of the country are strong and well-fortified, abund- antly able to meet all demands for
 crop moving or other legitimate bus mess purposes, and continues:
 "Aside from the disturbed and
 alarming state of affairs in parts of of the old world, for which, I am convinced, this country's refusal to
 ratify the peace treaty is largely re- sponsible, there is absolutely no justification for the spirit of pessi- mism and uneasiness prevalent in business and financial circles in many sections of the United States today. ,.e ss "The action of the Federal Reserve
 banks in restricting extension of credit for unessentials and luxurles and in encouraging increased pro- duction of commodities most needed, has been distinctly beneficial, and has, it is believed, been a material influence in reducing the high cost of living far and wide. Although the application of the brakes seems to have had jarring effect upon some nervous systems, and has occasion ed unfounded fears of money
 panic and commercial crisis, there are in our country abundant reasons for confidence and Encouragement
 as xo the future.
 "Those inclined to pessimistic
 views as to our financial situation probably do not know, or do not ap-
 preciate the immensely significant
 fact that our Federal Reserve banks
 have at this time an unused lend ing power of 750 million dollars, and
 that if occasion required the board
 could, by waiving reserve require
 ments on deposits and notes only 10 per cent, increase the unused lend
 ing power to two and a half billion dollars, which is twenty-five times
 as much as all the national banks
 of the country (which constitute 9 | large majority of the membership of the reserve system) were ever bor-
 rowing at any time on bills payable and rediscounts prior to 1913, the
 maximum of such borrowings at any time up to 1913 having been only l
 "In the face of such figures and facts as these the fear expressed in some sections that there may not
 be enough money available to move l the crops seems manifestly absurd. l It will be recalled that in 1913, be- 1 fore the establishment of the Federal
 Reserve system, the stringency and l uneasiness which prevailed at crop
 moving time was instantly relieved
 by the announcement of Secretary
 McAdoo that the government was 1 prepared to deposit fifty million dollars of cash in the banks of the I South and West to help move the crops. The Federal Reserve banks can, at this time, as have shown
 above, based upon their present gold reserve, supply fifteen times as
 much as the fifty million dollars which was so effective in 1913, whol : ly without waiving or reducing theil reserve requirements.
 } "It is also reassuring to know that
 this unused lending power of thu , Federal Reserve banks is twice al :, l great as the aggregate amount of al the emergency currency issued il I 1914, upon the outbreak of the Euro ) pean war, involving the greatest ii : nancial crisis in the worlds history Such figures as these ought to Sb' j. sufficient to allay fears entertained }, by pessimists as to the financial con 'l dition of this county at this time. I With a sane settlement of pres ent labor troubles and the restora