| Show I I I I FEDERAl RESERVE HAS STUDIES STEADIED NATIONS NATION'S Board Called Upon to Face Serious Questions Finding Find Find- ing ng Solutions ns WASHINGTON WJ Jan 27 i. first reI rc- rc re-I re I port of or tho the federal re reserve eno covering ering I tho the developments de which prec preceded ed the opening of oC the twelve regional rt r reserve erve banks last Jut November er and tho rho two months In which the they have 0 been be n In actual opera opera- operation lion tion was sent to congress today It anI announces announces an an- that results already have c been accomplished an and anu that the tho system eye eye- tern tem now cannot bo be regarded res as experimental expert expert- mental In the Ule sense that there Is an any uncertainty uncertainty un un- un- un certainty as to the outcome No legis legislation lation lallon Is asked for the board devoting denting itS ia r report port chiefly chien to an outline of oC bO bow the nc now new system estem has strengthened th the nations nation's financial situation Less 39 than five have 0 o ia elapsed sa says S 'S the report since the Introduction Into our system of the mo most far reaching change that has been made In inthe tho the fie field of American banking since tho the pas passage fO of or the tho national banking act net There Is much yet et to be done but th the th work nork cannot bo be regarded as experimental In iii the sense that there there Is an any uncertainty as to tho the outcome Its potentialities are vast and should contribute immeasurably In the future to the tho solidity stability and flexibility of or the American credit systems This question must be frankly rankly frank rank ly h faced What That Is the proper place and add function of or the federal reserve banks In n nour our banking and credit system On the theone theone theone one hand It Is represented that they are merel merely emergency banks to be resorted to for tor assistance only In time of or abnormal stress while on the other other- It Is claimed that they arc ago In essence e simply additional banks which should compete with the tle member banks especially with Ith those orthe of or the greatest test power po Tho The unction function of or a a. reserve bank Is is' not to be Identified with either of oC these extremes although occasions occa occa- clone ma may arise arlee when either cither of such Ruch courses may be Imperative Its It- duty dut plainly Is not to await emergencies b but t by anticipation to do what It can to prevent prevent pre pre- vent ent thorn thom So also If Ir at an any time commerce Industry or ot agriculture are In tho the opinIOn ion of or the federal reserve board burdened unduly with excessive Interest charges charge It will bo be tho the clear and Imperative dut duty of ot the reserve resene board acting through the discount discount dis db- dis- dis I count ra rate to and open market powers to secure a wider diffusion of oC credit facilities at reasonable rates rate I |
