The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-05-25
RESERVE BANK HEAD
IS OPTIMISTIC OVER,
PROSP ECTS IN n. D.
Outlook in Northwest is One Of
encouragement, Mosher
Tells Bankers


of economic stress in that he at leas
has roof over his head, Curtis I
Mosher of the Federal Reserve ban
of Minneapolis told 60 North Dakot
bankers who met here for the join
meeting of the East and West Mis-
souri, Slope groups Tuesday.
1.-The man in the city, however ca
of work for months. cannot find {
job of any kind whatsoever" Moshel
said.
"Such contacts as I have" he con
tinued. lead me to the firm belle
that here in the northwest the out
look does not justify pessimism. bu
is one of definite encouragement
There appears to be no section in the
country more nearly fundamentally
sound than this Of ours. We have
not had to face the tremendous prob
lens which have arisen in great in
dustrial centers during this period OF
depression, nor has the financial sit
uation been weakened by over-eX-
ploitation of city real estate as has
occurred in many of the large GEN.
ters. We have not been subjected to
important receiverships or business
failures, nor have our large and i'm
portant banks been forced to the
WALL
Mandan Man Elected
John F. TaviS, Mandan. was elected
president Of the East Missouri Slope
bankers at Tuesday afternoons Ses-
sion Other officers named were M.
T. Barger, Linton, vice president;
John Fischer Glen Ullin, secretary;
and H. E. Timm, Wishek, treasurer.
j. P. Wagner, Bismarck. automatical-
ly becomes member of the nominal
ton committee for the state aSsocia-
ton convention at Grand Forks next
month since he is retiring president Of
the group.
James S. Milloy, Minneapolis news
paperman, discussed matters pertain
ing to agriculture in the Northwest in
another talk before the joint conven-
ton. He described seed loan activities
in Washington, D. c.. and told of pre-
parations being made for control of
grassfoppers in this section.
Is Year of Progress
Mosher predicted that in retrospect
the year 1892 will be regarded as a
period during which exceptional pro-
gress was made in the strengthening
of banking and other financial ma
chinery of the United States.
Congress has taken the first i'm
portant step in the adoption of the
Glass-Steagall bill. which may be re-
garded by its terms as a purely
emergency measure. he said.
"Of far more Importance is the
much discussed Glass bill. which is
designed not as temporary emer-
gency measure but as a permanent
addition to our national banking
law he said.
Although the Reconstruction FL
nance corporation act cannot be
classed as banking legislation, it has
been Of immense Importance and as
sistance to banks in every part of
the country, Mosher said. He pointed
out that the house of representatives
has passed novel and interesting
measure known as the Goldsborough
bill, which imposes upon the Federal
Reserve board and the secretary of
the treasury the task of maintaining
the average purchasing power of the
dollar at the levels of 1929 to 1881
by manipulation of the volume of
credit and currency.
Describes Various Bills
The Glass-Steagall bill. he said
permits any Federal Reserve bank
with the approval of majority OF
the Federal Reserve board to make
advances to members on time or de-
mand promissory notes secured by
collateral satisfactory to the Federal
Reserve bank and at discount rate
one per cent higher than the dis
count rate currently in force.
THE Federal Reserve board may
by regulation limit and define the
classes of assets acceptable under
this authority. but no such notes
shall be eligible as collateral security
for Federal Reserve notes" he said.
AS to Federal Reserve banks, they
may. with the approval of a majority
of the Federal Reserve board, offer
to the Federal Reserve agent direct
obligations of the United States as
collateral security for Federal Re-
serve notes. This is an effective bar
rier against foreign raids upon our
gold stock and an equally effective
guaranty of the maintenance of an
adequate gold base for the credit re-
1uirementS of the country.
Another important provision of
this bill is one which, in an emer-
gency, would permit groups of five
or more individually owned and con-
trolled member banks within a given
Federal Reserve district, in the event
of an insufficiency of eligible paper,
TO present for discount at a Federal
Reserve bank their joint time or de-
nand promissory notes for redis-
count, the proceeds of such loans to
be distributed to such of their num-
Der and in such an amount as NAV
be agreed upon
Would Strengthen Supervision
The Glass bill proposes to
the supervision of the
Federal Reserve system over general
credit conditions and to invest Fed
eral Reserve authorities with disci-
olinary powers over member banks
which pursue unsafe and unsound
policies or abuse the privileges of
membership, he said. It also raises
he controversial question Of branch
banking by authorizing branches Of
national banks Of given size within
he boundary Of the states wherein
they are located, or If located near
'tate lines, within an area not great
sr than SO miles distant from the
state boundary.
The governor Of the Federal Re-
'erve board, Mosher said, has come
mt l1alhliolu fos. tho ,.s.ifaaoAaa> -