The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-09-01
Foreign Representatives
Ten Years of Federal Reserve Sysem

An interesting symposium on the Federal Reserve
system has been issued by the Chamber of Com
merce of the United States 1t includes an estmat
Of the value Of the system from the viewpoint Of !.
federal reserve official, of a banker and of busi
THE creation Of the Federal Reserve System"
says the official, gave the opportunity for the first
time for the development OF American banking
policy The gold reserves We're diverted from the
1000 individual banks, dcvOtng their attention
largely to profit making, into II institutions
the federal reserve banks, created for the primary
purpose OF administering these reserves, not for
profit, bat in the public Interest,"
This resume Of the system from an official view
point is from the pen Of Pierre Jay, chairman OF
III" board of the New York federal reserve bank
Col. Leonard +. Ayrcs, vice president of the Clcv"
anu Trust company, summarizes his views of ten
years of the system in the following manner:
"lo summarize, let me say, that it does seem to
me- first, That what the inception Of the Federal
reserve System has done for us in business has
been to substitute confidence for fear secondly
that it has permanently eliminated from American
events the American financial panic and, thirdly
that it has liberated the federal government from
the necessity Of appealing periodically to Wall Street
for help whenever of these great financial
pancs or credit stringencies appeared
Inc viewpoint or tn" business man after ten years
OF dealing with the system is given by George A.
Ilanney of the international Harvester COMPANY
He declares that the greatest thing accomplished
by the system in his opinion is 1.-The feeling of con
hdence and security it has created among business
men VITA regard to the banking and financial sruc-
ture of the country
This symposium properly circulated should do
much to correct an impression hostile to the SYSTEM
The Federal Reserve System throughout the agr-
cultural states has come in for much censure the
grounds that it did not function to the advantage
OF the farmer, but nourshed big business solely,
and especially big business" as represented by
Wall Street.
Despite the fact that the reserve banks deal only
with member banks, this indirect functioning has
very direct bearing upon the ease with which the
business man farmer secures credit if he is en-
titled to it. Practically bank is distant more
than "a hours from member bank and in most in
stances the federal bank is within very few hours
of credit upon operations and facilitating the flow
OF currency to points where the need is urgent.
Many of the operations of the federal reserve
banks are unknown to the average man in the street
This symposium sets forth in very plain terms just
what relation the reserve banks bear to the com
mercial life of the nation.
FOR instance there is huge daily flow of cur
rency in and out OF reserve banks During the year
it aggregates more than ten billion. The system
has cut the cost of collecting checks in half as we'll
the time Of the transaction
The Chamber Of Commerce of the United States
has set forth the machinery of the Federal Reserve
System in most admirable manner.