THE SUN, MONDAY, NOVEMBER 16, 1914.
Reserve Banks and Cotton Exchanges Open
OPEN TO-DAY TO
Tanic Dangers "Will Not Oc
cur Under Xew System,
END OF CEO? MOVING
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
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
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
'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
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.
t"-Kna City ....
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.
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
"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
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
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
"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'
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
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.
.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."
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
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
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,
"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
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
"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
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.
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.
AS EXCHANGE OPENS
To-rlny One of Most Momentous
in History of New York
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
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 .
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
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.',.?
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
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
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
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
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
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 -
He said thnt he had been In New
Hcor's of his friends had searched the
country around this place for him. Some
had believed that ha waa dead.
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
'Taking all the requirements of the 150,-
000 miles of railroads In the I'nlted States
",r. inciuaing rew '
...,.;.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
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,
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')
" 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
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
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."
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
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
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'
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.
"" ,ill Pnj" Fpnn HelMoiiUf.
ur text rercrs to tn present lime ns
nn evil day upon religious people a d.tv
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
.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
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
from the slm-
idlolty of the (lospel Ir.snire of the
Itpdemptlon through tho death of Christ,
nnd others having their faith entirely
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
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,
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
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
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
" ' 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
(I Mt i
s 1 1,1
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