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Show PROSPERITY TO COME THROUGH THE NEW mm uw Salt Lake, April L'S "The vista of a wonderful prosperity Is before the United States. "A steady Improvement in business conditions la noted in every part of the country. "We are coming to a great business revival all over the I'nited States unhampered un-hampered by anj ios8ible feeling of distrust " These were some of the optimistic sentences of an eloquent address of Charles S Hamlin of Boston, governor ui hip n'uprai resprve rjnaru ai a nan- 1 quet tendered Mr Hamlin and John Pernn of San Francisco, chairman of the federal reserve board of this district, by the bankers of Salt Iake ! City at the Alta club last evening The banquet was attended by the prominent bank officials of Salt Lake; and a few other guests. The dinner was given for the purpose of giving the bankers of the city the opportunity opportu-nity to meet Mr Hamlin and Mr. Per rln and to permit them to explain to the bankers the workings of the new monctarv system. Mr. Hamlin spoke in genera terms of the new currency act, how it had already succeeded and what it meant in the future for the business and prosperity of the United States. Mr Perrin spoke more of the technical details of the system. I liter United States Senator Keen Smoot spoke in criticism of the new law, declaring In favor of a central national bank instead of the twelve district reserve banks. Little Rediscounting. Mr. Perrin in his address deplored the fact that there had boon practical y no applications for rediscountlnc commercial paper from the Utah banks Replying Senator Smoot said that the paper, especially that handled hand-led by the country hanks of Utah, was not of such a standard as to be acceptable to the federal reserve reserve bank since it represented money loaned more on the reputation of the Individual than upon tangible assets. Mr Perrin then said: "Seventy-three per cent of the paper we have thus far discounted comes from country hanks, and of the paper received last month for rediscount 97 per cent has been acceptable Does the senator from Utah wish to stand before you and say to you that tho paper from your country banks is so much inferior to that of country banks from other stales in this district that we will not be able to handle It?' Senator Smoot evaded the pertinent question, but suggested that it was a tribute to the honestv of the people of ; the statp thai they could borrow I money from the banks without put- l tins up good security. W. s KfcCornick presided a? toast-master toast-master at the banquet. Short address os of welcome to the distinguished I cuests were made by Governor William Wil-liam Spr and Maor Samuel C Park Governor Hamlin was thpn intro- ; duced. Mr Hamlin began by recalling some of his acquaintances In Utah He said that he was a classmate of Walter Wal-ter Jenninus who was graduated with him from Harvard in 1S'. Hp said he was also a close friend at college of Nat Brigham, ami he said be was proud of having worked to sec ure Mr, ; Brigham the post of United States 1 marshal Of Utah under President Cleveland. Mr Hamlin s:tid that he was also plad to mee in Salt Lake another ilar friend in Senator Snioot, I who. be said, was one of the ablest men in the United States senate. Law Is Success. The speaker declared that the new 1 monetary system of the United Slates was progressing splendidly. He Bald ! that it seemed certain to do all that jits warmest advocates had hoped He said that while the iipw c urrency law I was a party measure it was not parti-I parti-I s;ui legislation. Several Republicans, he said, had voted for It. among them Senator Weeks of Massachusetts, who had referred to the act as '75 per cent good ' He then briefly outlined out-lined the history of the measure If one central national bank had been established, instead of the twelve regional banks. Mr Hamlin said, he did not believe the system could have existed He said he thought the hlst-opy hlst-opy of the second United States bank would have been repeated He said each regioual bank served a prcat empire. em-pire. The reserve bank in Chicago served a population greater than that of Belgium and Switzerland combined that of Dallas an area greater than twice the German empire, and that of San Francisco an area in whl h could be placed Great Britain Fiance, tierman and Italy, witn enougu territory ter-ritory left over to establish a fair-sized fair-sized country. Panic Improbable. Goverhdr Hamlin said that there had never been a panic more unnecessary unneces-sary than the panic of 1907. Under the present law no such panic could possibly have occurred, he said. Some banks In 1907. he said, had scant reserves re-serves but the banks io the aggregate had $240 000,000 in excess of thir legal reserves The panic, he said, was occasioned by the hoarding on the part of tho banks and on the part of individuals There never is hoard ing by Individuals he said, except where there Is hoarding bv banks. He predicted that this country would never nev-er again see such hoarding as there was in 1907 "Under the present law," said Governor Gov-ernor Hamlin, ' there is no possible reason for any bank holding any money in its vaults in excess of its legal reserve 1 belloe with all sincerity sin-cerity that it will not be possible ever again under our present system to have a financial panic In the United States." A panic was threatened In 1914, declared de-clared Governor Hamlin, and it was averted only by the Issuance of 5300,. 000,000 of emergency currency, all of which is now bing recalled. A seri ous crisis, he said, confronted the United States, and the issuance of the Aldrlch-Vreeland currency with Interest and penalty reduction, under the power given by the new currency act to the federal reserve board made it possible to pass through the crisis unharmed. Strength of Law. Under the new act Governor Ham lin said it was still possible for busi-uess busi-uess enterprises; and banks to fail through speculation and mismanage ment, but, he declared, it would never again be possible for the failure of a firm or a banking institution to carrv down through its own failure the entire en-tire financial structure of the country coun-try Mr. Hamlin said the only fear for the new system was at the start. There was a chance of failure in the fact that It wae possible for the mem her banks to call on their correspond ents tor the money to be deposited In the reserve banks. To obviate this, he said, the reserve board ap pealed to the member banks to make their deposits in gold from their own vaults This appeal, he said, met with universal response, and he pa d tribute to the patriotism of the bank ers of the country in contributing to the success of the new system Mr. Hamlin said that at present we had today what was conceded to be the best financial system In the world. Before the currency law was passed it was universally admitted, he said, that we had the worst financial system sys-tem in the world. Politic Eliminated. Concluding, Mr. Hamlin said that politics had never In any way entered I .into the Selection of the regional ! banks. In San Francisco, he snld.J I the members were all Republicans; in I Boston, he said, thern were two Re- publicans and a progressive. These selections, from a political viewpoint he said. Were accidental, and the politics poli-tics of the Individuals was not known until after their selection, as the question of politics had nevwr been considered at all |