Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1914-11-16
PLACES CITY in
FRONT RANK AS
MONEY CENTRE
Institution Begins Business
With Total Absence
of Ceremony.
PROMISES TO REsHAPE
DISTRICTS CREDIT SYSTEM
Changes in Statute to Release
$21, 100000 in Reserves Now
Idle in Vaults.
MARKS NEW FINANCIAL ERA
Currency Act VIII Transform Coun.
try's Credit, Says Governor
George j. Seay.
MARKS NEW FINANCIAL ERA
Currency Act VIII Transform Coun.
try's Credit, Says Governor
George j. Seay.

In the presence OF the nine members
OF the board OF directors and small
delegation from the local banking
colony. the Richmond Reserve Bank
Will at o'clock this morning throw its
doors open for business. The certifi-
cate authorizing 1t to begin operations.
executed by the Federal Reserve Board. 3
arrived in Richmond yesterday, and
VIII be posted at reserve bank quar-
ters this morning.
Tho opening will be devoid OF cere-.
mony. Unostentatously equipped,
housed in modest building in the i
very heart of the financial district,
the Federal Reserve Bank OF the Fifth
District Will begin simply and with an
the giant task Of reshapins the coun- y,
try's credit system.
OFFICERS WILL he ADDED ~
AS NEEDS BECOME KNOWN
Governor George j. Seay and Fed
eral Reserve Agent William Ingle will
for some time to come be the banks
only officers. AS the needs OF the In s
stitution are established and become
more definitely known tho other ncces-
sary officers Will be added. For the
present the offlcIal family Will consist,
besides Mr.. Seay and Mr. TngIe, of I.
clerical force OF eight or ten.
The i've more importapt subordinate.
~
with the <tellers- nd assistant, cashiers
Iof, private stitmtions.a arc: w. W,
billiard. OF this city. former teller in.
the American -;ational Bank; c. VI
Blackburn, OF this city, formerly with
the Planters National Bank: Frank
McCauley Leeke. formerly OF the Ma
tional Bank OF Commerce. Baltimore;
7. j. Goodwin, formerly with the Guar
antce Trust Company OF South Caro-
lima, Columbia, S. c., and Thomas Mar
A.. n
Trust Company, OF Baltimore. 5g
Federal reserve notes, recently
printed for the local bank by the
United States Bureau of Printing and
Engraving, Will be available either to-
day or shortly after. These notes VIII
nations. While they Will be In the;
vaults OF the bank and available for
Issue In case OF demand, their ;circula-
tion will not begin until commercial
paper is presented for rediscount.
rIlA lANsFORMATIoN OF CREDIT
SYSTEM. SAYS GOVERNOR sEAY
~ believe that tho Federal reserve
system will bring about a transforma-
tion OF the country's csrdit system,"E
said Governor George j, Seay. last
night, commenting on to-day's siE-
niNcant OCCASION "The country has
been suffering from tho lack Of credit.
This disability will In large part be
removed by the new Federal reserve
currency. and its availability In ex-
change for accredited commercial pa-#
per.
THAT distinguishes Englishman, Sir
George Paish, financial representative
OF the British government and an econ
omlst of world -widc reputation n a
talk before members of the Federal
Reserve Board and officials and d.
rectors OF the Federal Reserve Banks
in Washington, stated that In his opin-
ion the early establishment OF the Fed
eral reserve banks was so import
ant and urgent that bankers should
be willing to sit up at night In order
to accomplish It. He did not ovorstater
the Importance OF tho new system.
In Richmond we have been working
day and night In preparation for the
opening, and We shall be ready to-
morrow morning to take up our task.
Exactly what the reserve bank Will
undertake to do at the beginning is
set forth In circular letter which we
have issued to members This letter
VIC think reflects the conditions which
Will exist over all the country
WILL RELEASE LARGE SUMS 81
NOW TIED UP IN DANK VAULTS
Tho operations of the opening day
and for some time To come Will have
to do largely With receiving and cred
iting the reserve payments of the
member banks. The total amount that
Will be received from this 'source dur;
-
100000. A number OF banks hayestaken
time by the foreloclt and sent inbtbeir
reserve payments, although they arc
really not due until tomorrow The
total amount due from the banks as
the first installment OF their subscrip-
tions to the capital stock or the Rich 4
mond Reserve Bank, has been In hand
for some days. and aggregates ap-
proNimatoly 100000" -.
Tho Immediate effect OF the inaugu-
ration OF tho new currency system will
be therelease in the Fifth Reserve Dis
trict of, approximately, $4,000. 600 In
reserves which Will become available
for loans This money has until now
lain Idle In national bank vaults
REDUCES AMOUNT OF lDLE
CAPITAIStSEPT In REsRFsyE,
Under the national banking law w hich !
Ris superseded to-day by the EFederai
reserve act. national banks were res
duired to keep reserves equalfto 26s per
cont of their deposits. In the case % a.
banks In reserve cities. tho new law
reduces the&reuuired reserve to Is per
cent OF the demand, and S per cent, Sof /
time deposits. while the reductions I'm
the case af country banks are to Ia
and 5 per cent, respectively,l$ The re- y
serves thus,liberated In this distr!ct
for general loan purposes. accordinx Z
to tho last statement OF tlieA Com ptrof-
Ter. OF the Currency, will be in sxeesS
{contlnled on Eighth Pass.S z