The Birmingham age-herald., 1914-04-07
ID HURRY PUTTING
 NEW BANK SYSTEM
 INTO OPERATION
No Financial Crisis Ex. pected by Regional Bank COmmittee-SOme De-
 lay Is Expected

Washington, April 6.-Every effort will or organization committee to have all banks expedite the formal steps necessary to put the new currency system into operation. Members of the committee apparently have no expectation that there will be any financial crisis to face requiring the assistance to banks which the reserve sys- tenn will provide, but they are particular ly anxious to have the 12 reserve banks in the field when crop moving time comes around next fall. They hope to be able at that time to demonstrate how easily and quickly the reserve system will take care of a situation which in previous years has caused financial worry, and which last fall led to direct loans from the United States treasury to national banks in the farming regions.
 Delay Expected
 Under the law the several steps to be taken by the banks might be delayed so that there would be little chance of set ting the reserve banks up before autumn, but if the banks respond promptly there is little reason to believe that the organ ization will be deferred longer than a few months. The committee has worlxe
  work and tomorrow the formal notice will be sent to the 75is banks which ask en- trance to the system, of the location of reserve banks and the limits of reserve districts. With the notices will go blanks on which banks must apply for subscrip- tions for stock in the respective reserve banks. Thirty days are allowed for banks to make the first payment of the re- quired per cent of their capital and surplus
 As soon as banks in any one district have subscribed the s40O0, 900 capital neees- eary for reserve bank the succeeding steps of organization will be promptly taken The reserve bank will be given a charter and the member banks will ex- ercise their right to elect six of the nine directors of each reserve bank.
 President Wilson probably will name the five members of the federal reserve board he is entitled to appoint by the time the reserve bank charters have been granted. Then the administration is ex- lected to do it's utmost to push the organ ization of the system along. The reserve board will name three directors of each reserve bank and with this task performed the banks will be ready to operate.
 Interested in Limitations
 Officials here were interested today in what limitations may be placed upon clearing house associations through the new system. The reserve board will have much power over such assoeia tions, but no one in authority cared today to pre- dict how far it might go toward curtail- ing their activities. The board, however, Is not expected to interfere with the local functions of any such association, but it's action may take the line of lessening their grip, particularly in the larger cities.
 Secretary McAdoo tonight announced the results of the direct loans to banks at crop moving time last fall. Treasury funds were deposited in 193 banks in 62 cities in S states. to the amount of S37,- SS6,o0o The last of the loans were repaid by April 1, the limit set by the treasury. The government received as interest at 2 per cent total of s260.000 representing a clear profit. MT. McAdoo said the amount required by banks had been much less than he expected, and attributed this fact to the restoration of confidence when 1t became known that the treasury was ready to render such assistance.