With the adoption of the Federal Reserve Act, there was a general feeling that American business and banking had entered upon a new epoch. Many bankers throughout the country hastened to apply for membership in the respective Federal Reserve Districts and the sentiment among the banks was typically expressed by the directors of the National Copper Bank, who said: "As we watched the development of the Act in Congressional debate, we became impressed with the advantages to be gained through its operation, and our later and more careful study has only strengthened our earlier impressions.

"The great essentials - reserves, circulation, discounts, acceptances, refunding of bonds, foreign branches, farm loans, clearing of transit items - are well provided for, but with a wisdom which recognizes the dangers of sudden change, and allows years in which to perfect the transferring of banking operations from the old course to the new. It is true there is great power centered at Washington, but the country's past experience with the Treasury Department has been such as to warrant confidence in the future policies of the Federal Reserve Board - the central controlling body established by the new Act.

"Doubtless there will be alterations in the Act from time to time, as experience points out better methods here and there, but in the main we believe the Act will stand the test, and marks the longest step forward that American business has taken in many a day."

Although the Reserve Banks have not yet been subjected to any severe test, the belief is, in fact, general that the United States has now the best arrangement in its history for making the banking system responsive to the needs of trade and the monetary system elastic enough to prevent the recurrence of the once-dreaded panics, such as those of 1893 and 1907.