Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-01-19
MONEY ACT
LAUDED BY
SMITH
New Era of Prosperity and Bust
ness Freedom Predicted Be-
cause of New Law.

The bankers of eGorgia-450 in
number-after listening to brilliant
speech at the Capital City Club. by
Senator Hoke Smith on the new cur
rency bill-adopted resolution in
dorsing Atlanta as teh location for
the regional reserve bank for the
Southeastern District to be created
under the new law.
H. 7. Powell, of Macon, made the
notion and resolution favoring this
city was adopted with a great display
of enthusiasm.
Senator Smiths speech was the
feature of the banquet, which, while
not directly connected with the move
ment to win for this city one of the
new institutions, constituted a dis
tinct boost for the cause.
Senator Smith said that at first he
had feared Georgia was to be made
a part of the district to be served
from New Orleans and for that rea-
son had insisted on having the clause
providing for but eight banks changed
to read from eight to twelve"
A new business freedom was pre-
dicted by the Senator as a result Of
the new bill, which he said, provided
an elastic currency that had long
been needed
Sees New Freedom for People.
Senator Smith said:
Il have absolute confidence that
the currency bill passed in December
will bring a new freedom to the
American people and that it will be
especially beneficial to our own Sec
ton. | look forward with absolute
assurance to period or great pros
perity, and this section of our Union
Is now known everywhere to be the
section 10 which will come the great
est growth
Il wish to point out some of the
features of the new banking bill that
all may see its certain value.
"All lines of business at times dur
ing each year require more money or
currency than their ordinary capital
This is equally true of manufactur-
ers. merchants and farmers, and it is
especially true when a great crop like
cotton is to be moved.
Banks should be prepared to meet
the requirement in their different To-
calities, and the success with which
they meet it involves the welfare of
the clerk in the store, the la5orer in
the factory, and the small as well as
the big farmer, for 1t affects the sale
of crops, the continued operation of
factories. and the business of the
merchants
Expenses Exceed Interest.
Banks accept the custody of de-
posits, making 1t easier thereby for
the customer to use his funds and
also furnishing places of safety for
those funds.
THE expense of conducting A bank
exceeds the interest it receives for
loans of its capital and profits must
be made from money of depositors.
Reserves kept by banks are por-
tons of their depositors' money set
apart to protect depositors and keep
banks in position to meet any special
call of lepositors.
THE banking and currency act
passed in December was intended to
overcome undenied defects in the old
system, and benefit not alone banks,
but ths entire public.
Under the old system bank re-
serves were concentrated in central
reserve cities. and chiefly in New
York City Two per cent interest
was allowed on them. The reserves
were chiefly loaned on call for spec
ulative purposes. In case of extreme
stringency the reserves were not
available to the banks.
There was no provision under the
old system for increas of currency in
time Of stringency. The banks could