The evening world., 1913-12-27
How Federal Reserve lnstitu.
ton, With Only Banks as
Depositors, Will Work.
ITS CAPITAL. S,5,OOO,OOO.
Business" Not Stock Gam.
bling, to Have First Call
on Money.

h New York the greatest bank IN the
country, backed by the Government, and
putting into practical operation the now
system OF banking and currency just
created by Congress.
The Institution will be named tho Fed
eral Resene Bank OF New York. Its
temporary quarters probably will be In
the sub-Treasury At the northeast corner
Of wall and Nassau streets. Its per.
mansnt home. TO bs ixed later. will not
No an imposing structure. like those Of
other banks In the financial region.
Rather will Il seek iodsinGs In some
ohacs skyscrseer or In q small. modest
building conveniently located In 4 side
street. For this sll-powcrful Federal
Reserve Banks principal work Is to he
done behind the scenes. and the genera
public will not come into direct contact
with Il.
There vii, DO no long lines Of deposit
tors erowding its lobby and corridors. no
rushing In and out Of clerks and mes
sengers. no bustling cashiers and teliers
behind hne marble counters and bronsA
Oratinss. II will b quiet financial head.
quarters. operating principally through
~ medium Of other existing institu.
tens. dealing IN credits moro than In
cash.
oAkkS WILL OE THE ONLY
oGPoSIroRs.
q y 20 be Q bank for bankers. The
osiy dspositors listed on l,s books will
- banka It's debut will not be spec
teeulsr. Its transactions will be unob-
uusivs. There will be no scramble ANA
rush, NO violent disturbing Of the money
marta
80 far a. the public can see. there
will not Be q ripple on the surface Of
Wal street. and depositors In existing
banks will continue to do their business
u the aasne ole way. Its existence will
~ felt rather than seen.
ne principal object OF this new sys-
ten II to assist the average business
man In obtaining better accommodation
~ kis own bank, TO AFFORD . better
market for his notes. 70 make II easiss
for him TO obtain financial assistance Ia
the conduct OF legitimate enterprises.
,undss the old system most Of the
money IN the country wss either helt
or controlled by the banks OF New York
The spscuiators OF Wall street had frs
call On the use Of that money. Tht
business man came second. The nov
systsn 10 Intended to put the business
man Arst and the specuiator second.
Technically spsaking. the system In de
signed 10 suvpiy more elastic currency
en- sxpansion OF business credita an,
greater mobility OF reserves throueh hou
the oountry instead OF . concsutrutio
IN Wail street.
The FEDERAL Reserve Bank OF Ma,
York IL to be one Of eight or more sim
liar banks established In various part
sf :hs United States. each serving
dsdnsd region. acting ~ the ressry
bank for existing Institutions In !ts pal
ucular territory. 'r'r
Secretary Of the Treasury Meade
viii start out next week travelling a,o,
the country arranging for the establish
meat Of these new regional reser,
hanks. II has been definitely decide
tina. = York W. have one and CT
cago another. Location Of tho othe
y yet to be determined.
PNeol0eN1 TO SELECT FeoERA
RIeeRve noARo.
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aes' type that can b. 10 M ana IN
WI no'o once tor Ten sears NJ 'Af
seAry.
-, hsss sss,., gentlemen men, n wa.hlns.on was
Will aGe- rather slnery,sora NJ