Show Mr McAdoo's Giving Gift-Giving 4 Democrat Editors Editor's Views Front From the New Mew ew York Times Time is Important about this business i is it Its WHAT effect upon the banking situation That I It dissipates the treasury Urr resources is Js apparent The Th treasury's surplus Is the country's s ultimate bankIng bonking bonk bank in ing reserve and it is being redistributed among a ar an n enlarged number of ot depositaries GOi at A time when loans are tre large and bu business s at best is quiet certainly not Increasing A di distribution of or treasury treasury treas- treas ury deposits which are the same as reserve c money ata 2 cent I Is not distribution ac ae according according ac- ac at a a. flat rate of ot per cording to the needs of the respective sections for Cor needs and interest rates var vary in various sections sec sec- of ot reserve mone money according A distribution money to population and capital and anti surplus surplus' of ot banks is not banking at all 11 funds un s on terms which the tho A deposit o of treasury banks n neither could nor would grant to other customers customers customers cus cus- makes a J. J distinction between customers which Is time honored but which would be more honored In the breach than in the thc observance In li short hort thi this method of ot accompli accomplishing hing tho the desirable distribution o of treasury cash is neither good gov gov- nor noa good banking It may bo ho condoned condone as 38 being practically the only way but it cannot cannat on principle be approved ed 1 The Tho attempt to defend it as preparation forr Col an approaching period of ot possible stress cannot bo be al allowe al- al lowe lowed It Is now between seed eed time and harvest and there Is no seasonable need noell oC or greater bank reserves reser It Is 15 rather a a. time when good bankers draw In their resources to release them at a time of or greater need The treasury so o far fa faas as its action goes nullifies this process and docs does so by methods adapted to exaggerate erato an any conjectural stringency If there should be a a. treasury deficit through dec decline decline de de- c cline lne of or customs accompanying the tariff revision the treasury would bo be under tho the necessity of or re- re re recalling calling its deposits at an Inconvenient time I It If there thore should be a continuance of tho security de decline decline de- de cline dine the banks would lose on nn their deposits o of securities to secure tho the treasury account If It the they bought securities for Cor that purpose If It the banks borrowed the securities the lender might recall thorn and the tho banks's reserves would be depleted It is one of or tho the defects of our indefensible system that lint commercial banking ng Is entangled with the fortunes fortunes fortunes for for- tunes of or tho the treasury and the time security market To disentangle bank banking InS InS- from taxation on and speculation 1 is Iii one ono of the time reasons for tor establishing banking bankin upon r relations with business rather lather than with the treasury treasury treas treas- ur ury and the stock exchange The treasury's action binds them together In Inthe Inthe inthe the accustomed fashion at nt a time whon banking reform needs all the time help which It can get ant antl and especially from the administration n It would have been more moro edifying 1 If the treasury had considered Its action In some relation to the general credit situation rather than thon In relation to population and bank capital But if If tho the treasur treasury had done dono that It would not have YC chosen this time for re releasing releasing re- re leasing c- c supplies of ot tho tiro basis o of credit and coaxing an Increase sc of or bank circulation for tor which there Is no pre prent int nt demand r |