Every evening, Wilmington daily commercial., 1922-01-31
NEXT TWO YEARS
WON'T Be PERIOD
Or BIG BUSINESS
out O. W. Norris. a Prominent
oanksr. Says Trade Will
b Fairly Good.

wv ~ W. VOVVvUs u VVOVsVsWVt
Barker, Says Trade Will
BE- Fairly Good.
PRAISES FEDERAL RESERVE
Addressing t2a mon and few
wvtncn IN the IA Harry room ~ the
Hotel ,in Point, last night, George w.
Norris ~ Philadelphia. governor OF
the Third district ut the Federal Re-
Serve system. which comprises parts
et rcnnsyi,ania and New Jersey and
all of Delaware. expressed the opinion
that the next two years VIII not be
n period ~ boom or great prosperity.
hat he thought business win be fairly
good lie aid rrcciritete advances
and declines I'M prices are not unusual
nnd cited the War OF 1872 and the
,iNii War, lrtcr which recovery from
dcclincH WAS not rapid. While rubber
ana agricultural products have dipped
below the cost of production. he stated
many commodities are far up in the
air The peak of war pisccs was alb
normally infested and tho present
level should be compared with sslS and
ipit, southern cotton growers and
western grain farmers are making n
howl, but they are not SO hard hit
a. aRrlcul,urists in this neighhor-
hood. Industrial concerns have suffer
eel greatly. but because of their re-
curcrailvo power they are more able
o. bear losses.
Siahiiiration is nearly completed. but
industries viii not ho az fun tilt while
Europe IN In It's present condition. Mr..
Norris said Europe normally takes
twn-thlrds ~ our cotton. one-third of
our wheat. onc-tourth 20 one-half OF
our copper and a large quantity OF
our ccnl and other products. Disor-
panizcd and Impoverished. Europe will
not be a purchaser this year on a
scale anything like that OF the war
period. our exports In 1921 were one
half al those in 1929. and they viii be
less IN 1879 than In, 1921. Factories
are equipped to supply the home mar
kct. hut viii not run NJ fun ;ilt until
tho foreign market r. restored. We
ought 20 aid In the restoration of
furopc. ldio,ic attempts to collect
money we lent Europe will make mat
ters worse. Europe owes us 100000
ooo ooo, besides interest. but Is unable
made IN gold. because we possess a5
per cent OF the monetary gold. Pay
mont cannot he made In securities. be-
cause dividends and interest would
add fuel 90 the Are. Payment canno;
be made In goods. because we do not
want $40 600 600 600 shipped here and
put up at auction.
Mr.. Norris remarked that he would
not advocate anything In particular
but told hls auditors TO think the
matter over and eivo their best judy
sncr, to p-lawsrc's Senators and Rep
r~-cntatiy- an Congress.
r. ". Durham, president OF the
Hercules Powder Co. presided over
the meeting. which was held by the
Hercules Club, with Wilmington bank
srs and many other business men
present. In brief Introductory adj
dress Mr.. Durham expressed great
appreciation OF tho large attendance
lilo stated no topic Is OF greater inter-
est than the Federal Reserve system
which hcrnn operating In 1914 and
vas an effective agency IN the World
War, and MIR. Norris honorcd ths
nudicncc by coming 10 tell some OF
the organizations workings.
air. Norris said he came hecaus'
Delaware n IN the Third district o.
tho Federal Reserve System, which
embraces re districts. Explaining tina
the institution is not "A government
agency, but was created 10 serve banks
and business interests OF particular
districts, he announced that he woul'
tell ia powers and limitations. HI
mentioned that the United States priol
60 1913 had $4,000 or 10000 banks
which was more than the rest OF tn
world combined. lie also spoke o
IN. variety or forms OF currency. ON
banking system had two great de
fe,,r. he stated. The laws OF thu
United states and the several State
required the carrying OF reserve.
was the custom Of small banks 4
carry part OF their reserve with bank
IA large cities. This caused seriou
technical objection. The reserve wa
scattered all over the country an
was no, available for immediate us
al the point OF danger. IL was felt tina
tirr reserve, instead OF being scattered
ourN, 10 be concentrated where
could be quickly reached. The othe
ohi.ction related 90 currency.
large amount OF money was neede
for circulation. When industries wer
ia fun TIT and nj top notch mucl
currency was required for payroll'
hut n could not be obtained rapidly
Tho Federal Reserve system correct
ed defects. II provided for govern
mental participation In the conuo
OF the reserve hank, and the repre-
.en,ntion OF business. Regional bank
4Hasts tssFa gsaH
iish.d.
Telling what the Federal Reserv
svrtem Is and what II does, Mr.. Norri
said the reserve. instead Of being scat
tered. II conferred in certain reser
voirs. Deposits can be received oni
from and money lent only to membe
hanks. Each district has bank con
Quoted by a board of nine directors
nix elected by member banks an
three appointed by the Federal Re
--.... tlos x<btFls Washing