Newspaper Page Text
THE SUN, MONDAY, NOVEMBER 16, 1914.
Reserve Banks and Cotton Exchanges Open RESERVEBANRS OPEN TO-DAY TO AID BUSINESS r Tanic Dangers "Will Not Oc cur Under Xew System, Officials Believe. END OF CEO? MOVING STRINGENCY EXPECTED Wasiiinotov, Nov, 1! Marking a new era In tho financial history of the L'nltcd Ntates, the twelve Federal reserve bank ef the new currency system will open their doors to-morrow morning. It Is the belief of the authorities that the new banking fystcm will Instil confidence In business jir.il h.ivu a large intlusnco In restoring pood time. Tho new system permits the expansion and contraction of the money supply of the country m keeping with the actual needs of business, hcreas tho old system milntalned the s.i:no amount of the cir culating medium for all seasons and all f.nmclal situations. It authorizes tho Is- uatico of currency upon tho security of commercial pHper, with a generously broad Ueflri'lon fixed for this collatcrul. I: provides twelve reserve banks around which the banks of the country are rrnup.d. with a central directing authority vested In a governmental body nt Wash ington, the Federal Hesorve Hoard, which can mobilize the resources of any or all of the Individual districts to met nny e utraordlnary neei' for the circulating mtillum In any on" district. No adequate inet-od of mobilization was provided by t,i o!J sstem. It releases automatically, Iv de"r..ied reserve requtremests. moro ihvi J 100,00(1.00" cah and credit reserves. Si'iitiiarlz.d, the effect of the newly or ganized system, according to officials la Washington, will be to irevent panics. ll meaning as interpreted by students of tconotnle history i.i that tho I'nlted States alter many bitter c.vpcrlences with panics his at last learned tho lesson of the d1 asters and provided against ihelr rcpctl t!fi. President Wilson signed the Federal reerve act. which no called the "Consti tution of I'euco for Huskies." nearly a year ago, but sutllclent progress has not l?en yet made by the organization for the ysteni to permit tho twelve reserve banks a hls tine to undertake tho exercise of sll the functions vested In them by this act. llec.iuse of the extraordinary flnan rla; situation In this country which has re sult I from tho Luropean war, tho Federal Herve I5oard thought It best that all V 'lMe haste should be made In opening tfce reser.e hanks for a limited exercise o' their functions. TV o,- rations of the banks at the out set, t ierefore, will be limited to the fol loni'i : 1 A:"i!ance of deposits of reserves pi all!'1 'n lawful money. : niacounlln of bills of exchange and ct'irn'i clal paper. 3 Acceptance of deposits of checks di.mn by member banks on any Federal rervo binks or member banks In re- iv e and central reserve cities within tvi. t-anective district. The Federal Iteserve Hoard In prepara tion for the opening of the banks under tv,e f.tregnlnir limitations has ilxe.l rate. rel, .count for tho twelve banks, de-fV-e.l commercial paper, fixed general re-U..-ount policy, drafted by-laws for the ha' k and attended to other pressing rratie-, of detail Incident to the opening. Secretary of the Treasury MeAdoo, ex oihcio head of the new system. Issued tn statement to-night: ' Secretary MeAdoo will formally an nounce to-morrow, Monday morning. No-ve-noer 1?. the establishment of the Fed eral reserve banks In the twelve Federal reserve cities. These banks are located In the cities of Boston, New York, Phila delphia, Cleveland, Richmond, Atlanta, Chicago. St. IjuIs, Minneapolis, Kansas City. Dillas and San Francisco. The opening of these hanks marks a new era In the history of business and finance In this country. It Is believed that they -n 111 put an end to the annual anxiety from which the country has suf fered for the past generation about In sufficient money and credit to move the crops each year, and will give such sta bility to the banking business that tho ex treme fluctuations In Interest rates and available credits which have ehamcter Ited banking In the past will be destroyed permanently. 'The Federal reserve banks provide for a system of credits based upon commer cial paper, thus nt last seeming to trie cou.-.t-y an adequate supply of the nec !rv credits to meet the legitimate de mands of business us they develop. The aipplv will be absolutely responsive to the demand, and thus business will be freed from restrictions, limitation and Ir.Jnrles from which It has suffered In the past because It ha mot been able to receive at the time when most Jieeded th credit facilities which were essential to its regular and proper development. "The Secretary Mid that he wished tn take ndvartage of tho opportunity to congratulate his associates on the Federal Reserve Hoard upon tho great patience, Intelligence, patriotism and loyalty with which thev had taken hold of tho great task nhlch has confronted them since hel- induction Into olllce oa the 10th 'f August last nnd to which Is due the successful opening of the Federal reserve tanks." 1 f If statement was accompanied by the f"ovUig tah'e giving data concerning the reserve districts: Authorlred No. of D'cirri and Iteierre Bank. capital, banks. l Itnl li.Tlt.W 411 N York is.mi.too U.MI,rA 1J.011.T0O 4,1I,0IV1 K,M0,30O r.,&3.t 7,77&,fi0 11 7M 7M : m tn u '01 B7 TN vn 7,671 l'h.Utnlrhla ... -Cl.iel.md f Hii'hinonil J Atlanta Chicago -st I.OUl -Mtnneipolis t"-Kna City .... Jl-Pallas l!San Krandsco., Total $1,7.00 BOSTON. Tlep.islt nf Itnnk Are nxpectert to llrs.li About 930,000,000, Bourns, Nov. IB, To-morrow morning the Federal reserve bank of Iloston will epn for business In tho Convcrso Ilulld I'g. Milk Hireet, where temporary quar "is h.ivo been established, The prospec tive ilepnaltH will run tn nboilt JfJO.OOO 000, I' ie eattmated, hut lb bunIncRS of these ne'ounts ran bo bundled by a small staff of flflelent clerks. CHICAGO. Heller Pi-cling In lliialness linrrn Mrenil;, siijs llnnker, r'nrAoo, Nov 15. -Pronounced revlrsl b 'r;i.e nnd Indiislry will mark the In tiiiKiirHtloii In-iiniri'ow nf the Federal re eri bank sjstem, ill the opinion of Chi C'K'i i'ankers. "The opening of ths Federal raaerva New Era Near, Say Bankers Praising Federal Reserve United States May Become Creditor Nation, Not, Borrower, if Hopes of Lenders in Finance Are Fulfilled in AVisc Management of Bank. BUSINESS TO EXPAND; PANICS NO LONGER FEABED A nw era In tt.e business ana bank ing of the country begins to-day, In the opinion of the greatest bankers and bust ness men of New York, with the open Ing of the Federal reserve banks. The most striking summary of the probable effect of the retrve system that lias yet been heard In Wall Street Is a quotation from tbe director of the Hank of France made during one of the finan cial crises In this country. "If you gathered your reserves and con centrated your banking resources," he said, "your country would not have to seek money from us. That would not be the only rtutt : your country would In fact be lending money to us." In time and not in tho very distant future, said men whee words carry un usual weight In all banking matters, the country has the chance through the con centration of It enormous koM supply In the reserve .system of becoming a creditor nation, lending not only In Eu rope but In the great undeveloped, com mercial fields of South America and the Orient. A central bank of the t'nlted States, though made up of twelve apparently In dividual units, has at last been created, In the opinion of the banking community of New York. The fact that the Federal reserve system, starting to-day with the transfi-r of reserves from the member banks. s a single central bank has bnn established to the full satisfaction of the leading bankers of this city, despite the effoit of the Democratic party to avoid It. This, has been achieved in practice. New York Is convinced, because the con trol of tho bank Is under one bead, the Federal Hesorve Hoard, and tb re sources of the system are piped together In one reservoir. Confidence In Its Heads. The result will ho, ns stated by one of the bankers In New York whose opin ion has a nationwide significance, that within three years. If the management of tho bank 1. as wU ns the present gov erning body promises to make It, the busVnetis and banking communities or the country will not be able to explain bow the country got along for so many years without It. The first Immediate reaon for the en- thuslastlo support that New York Is gh Ing rigidly adheres to a national policy fre the Federal reserve sstcm is its strong ' 'rnm sectional hlns nnd political Infill ronndeiiCH In Ihe character and shilltv of ences. aril If It confines Its activity In the men at the. head of the system In the ren.Q board and of those In charge of u.l?, V. " ...:.,..? I, .1,1 . L:?Jr: hoard's rulings and declarations of mten- tlon on commercial paper, a fundamental an" currency in times or exceptional of lie system, received the high praise ot stringency In the money market, the led- bankers generally In New York. risen e bank system will prove of Another factor of Importance that has Incalculable benefit to the entire country " won New York's .hearty support of the Mn,t "'. vice-president of the auar- svateni is that the Administration Is closelv '"'tr Trust Company and one of the lead- In accord with the reserve board. It Is I "5 m'n ln oountry In foreign ex ..in ...,i....i ... .. a. change said: that the system might become the prey of a party in other hands tban lho.t t the head of tho present Administration and the present reserve board. Amendments to secure stronger banking control are j still regardod as necessary. Nevmthe. le.H 1 . ret OKluMl ua mi ,1.11,110 iture of the system that a series of chocks and balances b.a- been provided by which through the watchfulness of one reserve bank on another the Influence of politics may be mitigated. An F.xeellrnt .start. Samuel McRoberts, vice-president of the National City Bank, spoke with approval of the work accomplished by the Federal Iteserve Hoard. "The Federal reserve nstem has been given an excellent start." he said, 'In the ruling tho board has made regarding ommerclal paper eligible for tho banks' rediscount." Alexander J. Hemphill, president of the Guaranty Trust Company, said : "I thoroughly approve of the Federal reserve act. I believe It will be of great benefit to the country. I do not seo how, under wise direction, we can now be sub ject to panics, unless nil the reeerve banks should lose their heads. We shall bo no longer dependent In such marked degree on Kurope. I feel certain that the trust companies win cooperate wuii me. var ous regional tescrve banks to make the whole system a complete success, and In this way servo the best Interest of the people." William A. Head, head of the banking and Investment house of William A. Head & Co., said: "I approve heartily of the Federal re serve bank. Its ultimate effect, I be lieve, will be to benefit greatly the coun try and the people. I do not think that money rates at the present time should be reduced more than moderately, and I believe that thin will be the nctlon ot the Federal Reserve Hoard. The effect of tlio system should be to rander money available when needed and to stabilize rates." Victor Morawetz, who had an active barfk nhou'.d Tesult In a marked Improve ment ln business," said George M. Reyn old, president of the Continental and Commercial National Hank nnd a director of the Chicago Federal reserve bank. to-nlgm. .t, sentimental effect has already manifested Itself bv a better feeling In v,,, ...... The. nr.ictleal rood will come front actual operation. If the banks generally rediscount, as It Is almost sure they Will, mo lnuuenco aur iini.ru) cnitni will be Immeasurable." SAN FRANCISCO. Banlc to Start There With 10,000, OOO, IVMh f00,000,000 Expected. Ban FnAvejsco, Nov. IB. The Federal reserve bank for the San Francisco dls trlct. comprising California., Oregon, Washington, Idaho. Nevada nart Arizona, will be ready for business to-morrow morning. H Is expected thnt at lent ,10,000,000 will be deposltod nt onte, and 1 that ns soon as posslblo there will be de posited JfiO.OOO.OOO. Inauguration of the Federal reserve syHUiu will ffo Mr ta establish fln"pet.ii confldcrtce, according tn the opinions ex pressed by tho leading bunkera of this city. ATLANTA. Met or.l Hopes Ilcorvr Mm ill. Clien Inc Mny Help Cotton Mtiinllon. Ati.hnta, Nov. H. The hankers of At lan a are op"mr:!n In rer;nrd to the hen ellls that will rnrult fiom the opening nf the Fudoral tescrve bank hera to-morrow and (his optimism Is shared by -the part In the dlous:lon of the Mil during Its formulation, when Interviewed as to Its effect, said! "Whether the Federal reserve bank system will prove a success or a failure will depend upon tho control nnd manage ment of the Federal reserve hanks asd upon the action of tho several national nnd fltato banks throughout the country. No banking system can of Itself produco proaperlty. The Federal reserve bank system Is merely the machinery designed to place banking In the United States upon a sound basis. "If used wisely this machinery may accomplish great good, but If used un wisely It may produce Incalculable harm. A sound banking system under well In formed nnd prudent management Is the greatest possible aid to prosperity nnd Is necoseary as a safeguard against finan cial troubles, but the best banking system without well Informed and prudent man agement Is unsafe. "The Federal reserve banks will become the foundation of our financial system. I'nder wise management they will accom plish an Immense amount of good, but If through unwise management they should break down a national catastrophe would reeult. Conservatism and foresight, there fore, should be the keynote of thff man agement of the Federal reserve bank sys tem. "If bankers should proceed on the as sumption that the Federal reserve bank --Ill ...I .. , ,t.m tho J ,, O I V I :i ; i ... III CAt'It llMnH IU!!!-' I 1 ,1115111 H11U "lir ill ' tnndlns credits the result will be dis astrous. If the managers of the reserve banks should be lacking In conservatism and foresight or If they should proceed on tbe assumption that they can manufac ture prosperity by expanding credits the result likewise will bo disastrous, Improper Influences, "Again. If tho Federal Iteserve Board In Washington should undertake to manage the banking business of the country. If It should allow Itself to be affected by po litical Influences or sectional bias, or If It should undertake, except In times of extraordinary emernency, to xerclo cer tain of its powers, such the pocr to shift the icserves of the reserve baniis or to suspend reserve requirements, the sy tem will prove a fallur" nnd will do more harm than good. "On the other hand, If bankers through out tho country and the directors of the reserve bunks exercise conservatism and foreslf-ht. If the Federal Iteserve Hoard , normal time, to the supervision of th r e- 1 serve nanus ho as io nep ineni mways in a sound condition, with amrde reserves en-! i 1'lng them to supply additional credit j t "The IVdoral reserve banks can have ,,n r-,., tion. as they aro now. they can be only I a benefit to biiMiiess. to banking and to the people of the country There should1 no longer h tho wide fluctuation in rates , and volu-s that hsve endangered Ameri- can business and flnan.'e In the pant." Effect on Mnln llnuki. fleoige C. Vim Tuyl, Jr., former super intendent of the Stat Hanking Depart ment, and now president of the Metropoli tan Trust Company, who guided the move ment which resulted In the new State banking act,wh.ch bea-s his name, said. "Ono of the main objects In the passage of the new State banking net. In addition to tho original purpose of correlating and modernizing the old bins on the stntute books, was to bring tho State banking Institutions Into harmony with the na tional system. Through reduction of re serves to meet the Federal requirements, through the granting of privileges of dis counts and acceptances, through amend ing of tho Ihw regarding stock holdings enabling State Institutions to Join the na tional system If they desire, the new 'aw has put .State Institutions on nn equal basis with the national banks, nnd in fact granted pi l lieges which It will require amendments to the Federal reserve act t0 ,.,. for ,h(. tonal institutions, "One of the first .advantages that have accrued to the State Institutions Is the i eduction of reserves. Though tho law permitting the reduction went Into effect on April 16 of this year, the full advan tage of this has not been enjoyed until now. On Monday those State institutions which nre members of th Clearing House will have reduced their reserves to the lower figures permitted by the law. Though I consider the estlmute nf 177, 000,000 of released reserves in the State Institutions of New York city ns possibly too high, the usefulness nf (ho great .imnu.it of new banking resouices released for business purposes cannot be overem phasized." bankers and business men of the Southern States Included In the Atlanta reserve district. "The opening of the Atlanta reserve bank, snla Joseph A, Jlcvorfl, "means the dawn of a new financial day for ' the South. It mean a mobilization of the rerve nnd tho turning of them Into general trade channels which will up doubtedly greatly aid business conditions. It was n wlso decision to Inaugurate the reserve system at once In view of the European war and the crista that baa re sulted. I hope the reserve bank here will bo oble to do something to relievo tho cot ton crlilr." The new bank will start business with $4,C00,O0O deposlti paid In by the mem ber bank as their flrat Instalment, Eleven r.lerkB, nn nsjlstnnt secretary nd treas urer nnd Mr, McCnrd, a governor of th system, will compose the office force. ST. LOUIS. Uftle Knrly Drninnd for Ttedls cotinClnir 1'rl Hour Kxperted, St. lVwin, Nov. 15, On the stroke of ! to-morrow morning tho fit, Louis Fed em! Jiesen-e liniiK, Kigltli Federal lto servo district, will open for business In leniimrnry quarters In the Tlnatmen's Hank lltilldlmr. Ltttlo early demand for tlm redl'rountlng privilege Is expected hero by William Mci'hesney .Martin, ehalr. man of the board of ihe St, 1uils Instl lotion Th" St. Louis bank yenterduy was nnnn lill"Ml.v fleiled a special member of ho S . Lcula Cleprhir; llouso Assooln t nn op tiio same basis n the United Rlntes Suh-Treasury and the Post Ofrlcn; that s, without any voire lu the mana ce ment of the nssoclatlea. COTTON CONFIDENCE AS EXCHANGE OPENS To-rlny One of Most Momentous in History of New York Trading. OLD DECEMBER PROSPECTS It Is generally conceded that lo-day will be one of the most momentous In the his tory of the New York Cotton Exchange. Fortunately, developments nt Its reopening are anticipated with confidence. Tho ef ficient work done by the conference com mittee In the formation of a syndicate disposes of the problem of liquidation of speculative long cotton and all likelihood of financial troubles, which until recently wero tegarded as a menace, seems to have been eliminated. There Is some tolk of voluntary liquidation by certain firms later on, but the Integrity ot their commit ments has been absolutely preserved, It Is said. There are various conjectures as to the prlco at whloh the market will open, hut these are unimportant. Under tho plans I made by the conference committee the nyiiuifrtl'" Will n?unm him uururn ui uii" llquldated long cotton nt the moment the price of December touches 7. B0 cents or below. A great deal of this cotton has al- ready been disposed of. Fully 40,000 bales have been sold above 7.50 and the re-1 mslnder can be easily absorbed. The financial guarantee to the banka that have extended their aid Is Ur In excess of . mllremniit.. ' I There Is a possibility that some of those J who are not wen inrormeii may ho unduly i yujn'eui m v.r itum wniu ie!l their holding of old Do- ;;",.ln?. .arc "'"te maturities. lK.nd anxious to se! cember contracts, according to a semi official statement esterday. Such an ac tion, 'It was said, would be the result of Ignorance, for the reason that old De cember Is not going begging. It haa a distinct value in relation to the later POSltlOllM. Tut Sd.v Is Informed on the beet of au'.horitv that (ft mjiTlmmn rfier.rno. . . , , . , . between old December and JanuAry of tho new contracts Is not over 31 points. This maximum difference is figured ns follows: A carrying charge ot 10 points nnd a care fully estimated difference between the value of old and new contracts of 2.1 points. Consequently, If any operator Is overanxious to dlposn of holdings of old December it would be well for him to keep his eye on the price at which the new- January contract Is selling, miary contract is selling. There Is first rate authority also for the! statement that the most powerful Interests on the market are prepared to take care of th entire local stock of cotton on the " or ' "" r " P0'"" "'i.',.? . w... 1,0,1 those holders of old December who 1 ZVJtZf? l?J$tl "17?f with actual cotton should bear in mind th relntlve value of these contracts as they aro estimated tiy the leading merchants of the trade. ENGLAND TO AID EXCHANGE. tioTernmeni Will r.narnnlee l.nans tn l.Mrrnool Merchants. er; rbte Petpatel, t Tax ri London. Nov 15 The Hoard of Trade aitiiounccs a scheme to facilitate tho te- opening of the Liverpool Cotton Kxchang" to-morrow The Uovernment will guar .inter 50 Iier Cent, atlvancet. In nirelinnt oy the bank ir respect to cotton futures, ' Tho Liverpool Cotton Kxeh.inge will guar- autre 2.1 per cent., leaving tho risks to the banks 25 per cent. These advances are to be refunded a year after the termination of the war. M'ADOO CALLS BANKS HP DftCTflW "MJlDDnWU Sprroiarr PlKnlcaspd Ovrr Tlinir .... , , . . . Fnilnrp to Join in Cot ton Fool. Hostom, Nov 15 Secretary MeAdoo appears to be .11, pleased over the fact ,i ,.e .v. w,-... v. v..... h. t . . J Ihe cotton pool. In despatch Henry I.. Illgglnsnn, Secretary yss undertaken, Uosto,, banker. py nd-H. $35.Oft,Oi.O f Rold to d!chArsr forelsm ob1iratlnnr Next o New Vmk, Iloston ni-nded noA nmr than any city In the countiv. and was therefore next to the largest beneficiary . ,h. .,1,1 , i. w hk..i ru. In the gold fund. Iloston subscribed only 7,000,'io0 to that fund. Southern cities were allotted $7,000,000 In (lie gold fund and they promptly and willingly tub- scribed tho full amount, when 1t wai. more dlfllcult for tho banks of the South to do this than for the banks In any other part of the country. Including St. Louis, the Southern sub scription to the gold fund was 512,000,000. It seecis particularly narrow nnd a mltnl.n ...llt- fnr th- lln.lnn Vt.nl-. t.t , .i fall to reciprocate when the South neeJs nsilstanre nnd aHka Huston to do so little. "An unwilling man Is always prolific In excuses. I should regret for Boston's own sake, If the banka there failed to do their pat. The fund will b raised with out Iloston If noceasary." 5,000 RETURN TO WORK. nnatneaa Metes Up at the (Heel Mllla at 1rr. CiticAno, Nov, IB, Five thousand men will return to work In the steel mills at Clary to-morrow after an Idleness ranging from one week to three months. The return of tho 5,000 does not menn that the mills will attejiipt to operate nt full capacity nt once, Tho mills employ ,000 when they are running full blast. MISSING GUARDSMAN RETURNS. lands Peara of Mlrlilleton n Friend. "aV purposes, plus the cost of main . a- , 'tenatirr. will amount to '250,000,000 illail A Islted sfew t ork. annually Hut these Improvements Mtmn mirs. N Y.. Nov. 15 Herman are essential P Smith, the voung National Guardsman, whose sudden departure from till city nn Tuesday last nlnrroed his wife and two Utile children, jeturned to his home io - night He said thnt he had been In New York, Hcor's of his friends had searched the country around this place for him. Some had believed that ha waa dead. YOAKUM'S POSITION ON U. S, OWNERSHIP Railroad Man Favors Copart nership in Letter to Jud son C. Clements. TS FOR FEDERAL CHARTERS WAsntNoros', Nov. 16. -The following letter from n. F. Yoakum regarding the statement frequently appearing In the newspapers that he Is a Government rail road ownership advocate has been re ceived by Judge Jtulson C Clements of the Interstate Commerce Commission: "ST. I.oriR. Nov. 12. 1914. "Dbar Judok Clkmbnts: While testi fying before you a few days ago Governor Folk asked me If I thousht tho remedy for existing conditions to lie governmental control of securities or some other close t elation between tho Governnent and the railroads. I said that was getting Into a big question, but If ho wanted my views I would give them briefly, which I did. "Newspaper comment and personal loi ters Indicate that my position as to the relations between the Government and tho railroads appears to be misunderstood, I 'n favor of a form ot Government co """""nlr.Mn ll,tln,:u"ht"1 f" v"n I believe that co-partnership arranpe- ments under special Federal charters to be granted to nil I roads desltous of operat ing under a Federal license would be tho via,! Miliitln,, .if fhn rnt.iil I tn ant fl.ul conditions. 'Taking all the requirements of the 150,- 000 miles of railroads In the I'nlted States ",r. inciuaing rew ' ?hn ...,.;.7 7, , n j... ....I iciraiuu v. iciii,ii.u .annuls. uiiuiim tracks, safety signal appliances, reduction need not less than J'50,000,000 a year. mis does not Include new construc tion. When the general situation Improves the railroads will 1. able to borrow some of this needd mosey nt from say S per cent, to ii per cent, per annum. "The cost of money is Just as much an expense of transportation as the cost of coal. ties, rails or other material used "? uiiruciiim. 1n.11n1rnar.50 In the construction, maintenance and operation or railroads, and Indeed Is oni of the largest Items of expense the rail- road have to contend with "The Government pays only 3 per cent. for the money used In the construction of tho Panama Canal, which Is ranldlv becoming an Important factor In trans- poriatlon. The canal would never have uvru uuiii wunoiii uovemmeni credit ami i i-uii-enueni cneup money. mo united ' Mates nas also authorised and la now preparing for the construction of a rail road In Alaska. I recognlie that the canal Is a good and wle Investment, and that the AUkan railroad will he equally as good fur the del elopinent of that now country In thine two enterprises tne uovernment lends Its credit for con structlon work and shoulders the deficit unill they become seir gardless of any looses gainer. The 3 per cent tne construction of and to be eold for the Alaskan railroad furms security for smsll I tiVatrtr in-lniri VtatOra wild like Invitation. ulatlng tl. anen.V. V, AT, " . , "H. ' uniting in expenses and revenues of rail- mads It should go a step further and i safely ail them In future tlnanclnr and I in considrrauon therefor enlov a imr. , cmisi.lrr.iuon therefor enjoy a share of the prortts. n-.M rrnr-srntation Ton the boards of directors. "ln this letter I si all not attempt to i go Into detail as to these special charters J but there, are no real dlfflruItiH m m iti- ing them absolutely safe for the llovern- men;. r.rofltnhl t. r th. Lm,l S., vntnRi'ous to tho railroad!. The change l '-cutM should bo giadual through the creation nf a low Interest b.. Clovernment railroad bond to take the place of the underlying higher Interest bearing railroad bonds as thev may ma ture, or they could bo exchanged under ramming process. Knch transaction 1 should bo approved by the Interstate Com-i inerce Commission, always provided that 'the net earnings of the railroad must 1 be at least 2i 1 times th.t lntr.t ,tn tl... 1 ',ov,'rnmen.t bonds exchanged for .a... alt j 1 'ur rt All Junior mortKiiKe bonds and. I'onds. on which th. rZlr Z, , IV "rt.be reanoneible, but would under eeiul-I table tenns to agreed upon share in 1 me nronis with th ti,i,i,i,... . At a rough estnn.it,.. In th- ..our.. a few years one-half of the present un'- derlvlng bonds, or ntxnit IS.noo oini. .....1.1 ... : ' "'"'n' " rsr.'aiii;ril or r,ritn.l..,l i, alow f these old bonds bear per rent ami per cm. and a few 7 n.. .' ' ' . ' -horefore under the pronosod system ther.i , .,,, ,Ventually bo a sM.ng to t h r-rn 1 , roads of approximately i tort onrt ono I a year In Interst alone. Tills ,' on' the assumption, that mirth .i iinr..,,.,... I , ZTLrZ' R, flr"1 wo,1,', i nw nttrnctlvo to niriltfrp. nnd iniutnrva ; aw tho nresrnt 3 nrr cpik rM-AMvi....! 1 Panamn c'nn.il bond.. If in thin win the nnr?''' of rotr.v can pay $iu0non,. in tne item of Irtro.t. Vovenumnt re the i , , ":.,r''TJ" ;. ," ",,"r tne prni.rs.,1 cnpi-t, ,,'p hrrangeiiient proo'i'uv rrom 'i,,,ooo.n, a u, t"o nno no') . year " have no queani..hnrs about Govern ment ownership of rallrn-ds It is merely a question of what is tlie 1t thing to do to nrrlve at n solution that will give the b't nnd most economic service and establish the mot prnfl'sblo and satlsfae. tor- relitlons hetwe-n the public and the rallioid'. I feel eonflrVnt th.it th rs of r,-trmdi would be willing to sell ' ,h, O.IWrnnUH S .1 teiSinahla nrlr but e-n so 'he Rwpran.ni t-nt . bicsnt ,0 n.nler-s: ,h f revenues are nholtt Hires tltm the uresent tnn, e the Government through taxation. "I f.ivn- the use of tho Government's proposed share of railroad Profits for the upkeep of country rouls. "Wc liuve two million miles of publlo roads, of which over one million miles are post roads, n the Kastem States the. nverage ocst to improve public rouls Is about JO, 000 per mile. In the middle West from 2,000 to 3,fi00 p-r mile. The cost of maintenance of public roads In Kabtern Slates Is given nt J5S0 to JK70 per m:ie, In tho cnlnl States shout J300 ier tnlle T e tMi interest on coun ty nnd Si.uo bonds and tho mat of main tenance, which Is paid by dn-ct tax, Is approximately ? lOu.ooo.OOO n year, and this tux Is Increasing yoarly. in the last two years tho bonds Issued and au thorize! for road purposes amounted to ...orM tlotn i an.noritnfin nnd i. .v.- course nf a very few years tho interest on all tho bonds Isiued for publlo high "Tlm I favor the creation out of cnpailnershln profits rf a fund to he up. PU'd to riefriv the .xiieuse of country ,i."ls. theioV lessening taxation and opening up new nuliiial feeders to evnr.v railroad lu mo country. General nsiist once to the railroads In borrowing money at a low rats would avoid a tremendous economic want. B. V, Toakum," I'attor lumrll ,Snicfltj ietmont oppear tcttkty In appronmntHv fifteen hundred neirs-: , wipers fn the VntteAMalrs, Canada, (treat IWtoin, .Souii A trtea, Australia and SeanHnarla, ln "tour lancuaees. MetrnpoMnn ettten ate not rmtrnllrd bv the hindltatf. henee ire are remitted') I Jo puMIn these tnstructtrt termtms In the leadtna newrpapert, paving therefor at adeerltHno rale J,' ; f iXTV.nXATioNAi. nint.K stvdksts AfsnvtArioK Jj Able To Withstand In The Evil Day "WATCH YE. STAND FAST IN THE FAITH. QUIT YOU LIKE MEN" Necessity of "Rightly Dividing the Word of Truth" Separation of Wheat From Tares in Progress Special Trials of Faith and Obedience Easy to Fall Divinely Provided Armament of Grace and Truth A Wily Foe Self-Examination a Duty. ritn.AnKi.PHiA, ta., I November IS, -I'ns- tor Kusscll's text I tn-dnv was. "Tako unto you tlm wholo armor of (Jod, thnt VP may be nbln tn withstand In tho evil day, nnd, having done all. to stand." F.phosl.ms fl:13. Alt the Apostles I pointed forward to mir ilny to the conclusion of tho present Ago nnd tho .nnuguratlnn of tho New Kingdom, Wltn one voice they all i loll ns thnt ibis A no is tho one In which evil, as personified In Satan, "tho prince nf tills world," prevails, nnd lu which the Lord's i'ano nnd His people aro ..- i.,. nt TKiML-ht. Thev all tu ' 11M t'Jat th inauguration of MWa,' Kingdom slgl.llles u mnmen- IM" Cl.iy llio nmn;m " """' hl .l,a a.i.l!..lri.tu lllilll bo cut off." fln . u.,spiv nmi kindly ve piled their eyes In rosiioct tn the length of time before the ItPign of Hlghteousness would begin. Hence the Apostles all speak of the New nisjiensatlon ns Imminent not, how ever, declaring It to be expected In their dav; rather, thev expected to full nsl'eop In ilenth. but with the assurance that wlih the ilawnlng of tho Now Dis pensation they would share in "Ills Resurrection"--Christ's resurrection tho resurrection to glory, honor nnd im mortality on th spirit plnne. Our text Is one of these prophecies respecting tho future picturing tho in auguration of Messiah's Kingdom. I.Ike nil other Scriptures bearing on tins sun. Ject. It Implies that th.. vt-lr-ti of sin tn tho transition rremi th Reign of Right- pnusness. from the uotnlnlnn of Satan to th dominion of Christ, will be a great ; Tune of Trouble, because Minn ana n:s deluded subjects will not qutcKiy nnu meekly renounvn inoir claims io e.iruuy iloinlnlon and submit themselves loyally to the King of kings nnd tho Lord of lords. This will neeimltnte he break ing in pieces of these systems th- Ir subjugation. As wo hav aheady pointed out. this . lirenWlnir and shaking and trouble are fr m1 ovorv ouartei' andTiro de- ami that to foUnwrd by tho flr of Miowii us tho conllK t between thr I"" '" ' ' ' " " " , " I I"""" " -ni the prince of the , word-merchant ptincos, m.inufact'tr- mg prln.-es. teliglou. and political' "c Prin pl.nc ..lid kingK showing it- that eventually then- will bo two gro.ir illvi- """ in tho conflict, and that the whole earth w.ll ho ternbl devastated In the ensuing anan hy. .. i "" ,ill Pnj" Fpnn HelMoiiUf. ur text rercrs to tn present lime ns nn evil day upon religious people a d.tv mi PASTOR RUSSELL) susiuining. lie- v V" . '...". . formulates! In tho n.ir k AM. line nave the public Is 'l.5E,Jr ,, ' ;;; v ,, l-n neglecting their study of the Hlble nt. bonds sold for "'rln'n,V'U!:t '.."P J1 ".m. .ru '1 - I Thev have failed to heed the words of the Panama Canal , o: me eartn. uuier wr.iuui u. ......... . , , ,n.lw cor.struct.on of the ' bmn the trouble upon the nations. ; 1 "',. ' , '.'.' "t-V " ' , ill xo-id low rate Picturing to is the winds of war. to bo ,i iJii.i- ;i,,. n.h. ,r I . 1 1 ..... .1 .. ,.np,1,,,..nT.Anrwnn,nllatll..". .'J't. t..,.. i " ' I iouutt . 'IU rjt tll.7 rni tow t..tt- , ,, . "f "'m j'l fnMi V. ? ?,rre., nP nly. . strongly, confidently, intell'-Ibn- .quipped with the helmet, tile somonnwhenf hr';1 .hn. w"' '.'ho ! the jhtej,, 7.10 sword and Church, have already been m this evil 1 .' . or nlunp lnlt" m ,l.., r, tf.tr,..., I tn It! nltl tnt for Mnnlt. vcirs. and 'hat It still continue and will merge ."to th- evil day upon th- world, This moans that the ov.l day upon the 1-1.,. ,.). ltAo., Iwtf,,-.. .lif. ..fit .litv- uttnn the nation;. This Is In full accord with IHU.lt l"--4l ait. Hit: iwii.-t ,1 -m tho Thurrh. t Pet. -117. rr nearly forty yours tho Church has ,0' .wi.i tiiw'.iprrrtiiire Lut'OFn tlfil1a Ollil tllt- 1:,Ki al"nc, ""' V('ry llnts lni'1C,,orl by mo "' m"1". varlnits other descriptions of this time furnished us in the Now Testament. lilting til .r- p. i mil 1 lloosopnv, i iinst.,111 , Scior.i c, n'. itisin, nimi.-r i r.ti. ism. F.oluiinn,iii and various other . onfus. mg to.ichillgs. havo . nine forward. K.irh contain fr.igni.'tits of truth ami inascs "f ''rI'0'" r',,,ni xh" Scrli;itr.il stand- I'olnt they aro brought forward at th. P"""-nt titiut by tlm Adversary, Satan with a view to confusing tho people ati.l leading them awny from tho Truth. Satan Is roprosontod n being esp.. chilly active at this liino for iho reason thai this l tho tlmu when spcc'.il !Uht upon tho Pivlno clinraoter and Plan aro duo tn come 1 the Chiifih Seeing that lllo people arc awakening tn moro .nio .igo u tnn.ium on r. I'g.ous subjoc s. tho Advcisury hr.ngs forth ., more intelligent illinium on r. I'giou host of philosophic t entangle, to in. lead, putting darkness m tho guiso of light, nnd endeavoring to make, the light of thti ilawnlng New Pay appear .is durkiiPP". This the Apostle refers tn ln tho context I v. 12)- ' For wo wrestle not ngnlnst tlesh nnd blood, but ngninst principalities, against powets, against tho ruler. of the darkness of this Age, nnd against wicked spirits In high posi tions." These wicked spirit, we understand tlio Scriptures to teach, nre tho fallen ""f;,''? ' '' , ''TSr t o''c mtliTncv-ne Se VJV. Zr angels. ilUd demons throughout tho Sitnn they hnvo not erased their war faro ngnlnst tlm Lamb and those who follow Him, nor will they eras, until, l ,1, .Inn f mn Imm-, tinnl Mhnll lilnil In the duo time, Imminuoi shall bind thnt old Horpent and restrain all his evil lnlluenocs, to the Intent thnt tho world may bo no longer deceived. Revelation 20:1-8. During this evil duy the, truthfulness ot the Apostlo'H word has boon demon strated, that tho people of God require the wholo nrmor of Clod that they m.ry bo nblo to withstand these seductive nnd evil influences, Only thus jtuldod. with tho Truth, prntpclo.l vvitli Hie breast plate of righteousness, shod with the preparation of tho Gosp. l nf Peace, nrmed with tho shield of faith nnd, In tellectually with tho helmet of salva tion und tho Sword of the. Spirit, which Is tlio Word of God only these huvo i hnn etblo to stand, nnd to holp others to I Clod's people, yot slupidly blind tn re Btnnd, In a tlmo when thousands linvoispoct to the teachings of Uod's Word, The fnreis.l nf the irrenl lllslrest nf Nailons is graphliall; sei r.irlli In Ihe T.ilnnin THE BATTLE OF ARMAGEDDON ! '!.! 1 II. IIIIO I'tlil'S, MIUI 1K l IHII7 111 l'AS.lllt III SVI'I 1, Sftcwlth this coupon m III secure to vim lhl elualile Ii.i.iU im.t free, Its chapter eipnnndlng Ihe V4lh Chapter of SI, Matthew's lioiel I.M.irlli inanr times Ihe prlre of the inluine, V.lilre.s IM I'.K.N'A I IOIAI. TDIII.lt MClllIMh AfslirU HON. 17 llli k Street, llrook It it, N, V., anil prlni lpal bonk .tores boon falling Into errors. Into somo being turned aside frnr unbelief from the slm- idlolty of the (lospel Ir.snire of the Itpdemptlon through tho death of Christ, nnd others having their faith entirely shipwrecked. Wo might ay that the evil day Is reaching Its cllmnx nnd changing Its form, Tlin errors themselves havn lot tlielr charm and are proving more nnd mero unsatisfactory to thoso who hiivo bp(n (1,.rplvP(1 bv tnpnii jfntn-. in th groat Time of overwhelming Trouble, tho deceived ones urn beginning tn feel their logs their los of fnlth In the Hihle. their lass nf fulfil In everything some even realizing that they are godless ",. 1 tlnA (iti. I n,i.lm- , n ,,,,.. I,, tli,. world." It Is a tiltlnblo condition. Would that I could sjio.ilc the wonl whloh would assist those and guldo them to iv right understanding of the Hlhlc nnd tnio fnlth In 3od, bnsd upon a reason able and Scriptural understanding of tho Dlvlno character nnd l'l.in' Whnt a sad spectacle presents Itself on every hund, and how perplexed the world In Honer.il Is with what no see, and how few h,ie any knowledge or any word of real comfort or encourage ment In offer' Fur forty years ill world has been crying. Peace' Peace! For forty years two hundred thousand professed representatives of Christ have been tolling the world that Christ bus been reigning and conquering tho earth, iinil that soon every knee will bow 'o Hllli porhnps deceiving themselves on the subject, while others lire being de ceived. Now, n tho grand climax of all this misrepresentation of Uod'.s real character and Plan and Kingdom, the war is thundering, the world Is In nnnitemont, and new armies and new battlefields are continually l'lng formed a groat confirmation in Kuropc as tho newspapers declare , a beginning of a corroboration of St, Peter's rteolara turn that the so. ml oaitli Is to bo con sumed. (if tho two hundred th.oMind pro fessed ministers of Christ, probably ona hundred and eighty thoii.-iinl ibclare privately, if not publicly, th.it they have tin fnlth In the lllolo ns find's inspired Message to II. people. The other twenty thousand aro sadly confused. while still clinging to the Ullile as the Hivlnc Word The truth with all these ministers is thnt they have been giving heed to the creeds and traditions ,.f men the wholes have already fallen most ab. Jectly. while th tenth that aro Mill reliabl.. as to he abio to d fh"m.''v.s or for the ? I ock 'nein. .. s or tor meir hoik. If such conditions prrvai do little for ul nnionget tno n.t: sier. wnn nugni wo expect or tho Christ. an peopt,. who pay thorn for instruction, who have boon overcharged In business and pleasure nnd are now ',ik - their leaders, falling Into the dlt'h of unbelief, uncertainty, perplexity'.' It is h sad spectacle. Only comparatively few nf Clod's people have followed the Apostle's advice, have put on the whn! ov il day. Illtile Miirtj Imperatlte. In accord with tho Lord's Word, we aro seeking to sound nn alarm, not for "'"X ?,,lfVeV nf thos who tho benefit nf tho-o who have fallen, are The liivino provision for our day 1 so won derful that even "babes In Christ." starved for the milk of tho Word, niav quickly appropriate strong nnd nourish ing food, and become clear In the Knowl edge nf !od and in a proper understand ing nt the niiiie. thus being enabled tn rojolco In this evil day and tn assist others. So wonderful the Divine provision of Truth that tlm'-o without the helmet protecting th-ir Intellects ftnin the vnnoiis conflicting theories and creeds may bo supplied nnd assisted in putting nil ihe helmet of salvation -an intellec tual appreciation of tho Pivitie thing So abundant is the Divine arrangement ih.it tho broa.stpl.ite of righteousness tho ftindnmentnl truths respecting Di vine .lustico. Wisdom. Love and Power. ovorlnc and protecting the heart nnd flu- vitals -niav bo quickly adjusted by ihio who tun sutllciently a wake and d"slroiis of putting on the breastplate : i Itrhloonsnoss. sn ahund.int are the P.vlii.. provision f-r tho willing nnd obedient that thev may qulcklv put on tho siimlals of preparation provided in tho Lord's Word, which will onablo thoin to triumph over tho adverse con ditions of the present life with speed and comfort. To-day. a never be.fore, the Sword of the Spirit, the Word of find. Is sharp, and to-day. ns nrver before, the people .if C.nd mav nulcklv learn hnw tn ns thl weapon as against every form of ignorance, superstition and Sathnlo op position. Kqulpped with all these, ar.d with tho knowledge of the fulfilment of "1" frri.iur.,l prophecies, the man of thoroughly furnished, tnay haM a groat shield of fmtli Rtiftlolont tn cover every other circumstance or condition huunav " ' 1 i c urge, inr.n, tll.lt t lie people of Clod everywhere begin ufresh n study of the Divine Word, not through their old spectacles, whloh have confused nnd bewildered them ln the past nnd In the present, but allowing the Hlblo to Interpret Itself and, with the asslstnnce which God has been pro viding for Ills people during thoso forty yrnrs. equ,p themselves not only to be strong fir tho present, but nlso for the coming (lavs. For if wo rem! Iho Rible nrtght. the terrible collapse of chiirchl an.ly nnd imitation kingdoms of God'i dear Son will soon bo upon us. That will b nn awful ilinc for the wnrld In general, but tlm perplexities and troubles nf (hat Cny will l. intensified In tho case of those who have leon professedly 4 iM If 'A 1' In! iiili 'il ! t . t I i i!'' iff fit r . .' fyA 'I 1 el !3 if. (I Mt i K- f. s 1 1,1 jf