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Show Judging a Great Institution by Small Defects . By J. H. PUELICHER President American Bankers Association. Asso-ciation. It would be difficult to find a banker, bank-er, understanding thoroughly the Federal Fed-eral Reserve System, willing to admit m 7 1 that w could continue a first-class first-class commercial nation, without the Federal Reserve Re-serve Banks, or mechanisms . similar sim-ilar to them. Yet there Is antagonism antag-onism to the Fed-e Fed-e r a 1 Reserve J. H. Puellcher Banks based In a measure on some minor mistakes in administration, but more generally on a misunderstanding Df their purposes, of what should be expected of such a system. The banker, as much as any man, Is to blame for the present misconception. misconcep-tion. He found Federal, Reserve Banks a ready scapegoat to blame for do matter what happened. If it seemed desirable to refuse or call a loan It was easy to say that the Federal Fed-eral Reserve Bank wished It although it should have been refused because contrary to good banking practice. Most of all was the system blamed for the fact that violent Inflation which hundreds of business men and bankers hoped might be continued forever was finally checked by putting up Federal Reserve Interest rates. There were those who blamed the system for not having put up the rate soon enough and others who blamed It because It put up the rate at all. The penalty for thus blaming every business mishap on this valuable system sys-tem may be the loss of Its much needed benefits. It we wish to Bave the present bank of the United States from the fate of Its two predecessors we roust make known to America, to Its rank and file, the splendid usefulness useful-ness of these Institutions. We must admit at the outset that in their administration mistakes have been made, that governors of Federal Fed-eral Reserve Banks and members of the Federal Reserve Board are human beings, and in the administration of the affairs of any institution by human beings mistakes will be made, but these bave beeu so Insignificant as compared with the outstanding usefulness of the institutions themselves them-selves that they should be Judged by the good which they have performed, which, after all, has been along the line of their designed achievement, rather than by those errors which time and experience can easily eliminate. |