The Birmingham age-herald., 1914-10-26
RESERVE BANKS WN l npEN
 ONNOVEMBER 16
McAdOO Announces Date for Beginning of Enforcement of New Currency System.
 Will Help Conditions

Nnshiputon. October 25.--tSpeciaI.b In confident belief that "the prompt opening of the reserve banks win he very helpful to the cotton situation. Secretary McAdoo tonight announced that the federal reserve banking sys- tcm would he put Into active opera tIcn on November 16. This concIusioa wns reached after con ferences between Secretary McAdoo. W. Y. G. Harding and other members of the federal. re- serve board.
 And coincidentily with this announce ment came positive assurance from high sources that no special session of Con gress would be called in November for tho relief of the cotton situation through legislation. The opening of the reserve system 1t is believed, will afford the re- lief that the congressmen from the south have demanded and will still demand their plea for an extraordinary session to pass remedial measures.
 Insist on Relief
 From the very inception of the move ment by the southern statesmen for cot ton relief by legislation. President Wilson and Secretary McAdoo have been nslstent that adequate and ample relief could be afforded through the treasury and the banks. Further they have asserted that such legislation would be harmful, rather than helpful, and that the banks were fully able to cope with the situation
 While November 16 was named some time ago for the institution of the federal reserve system, this later was set back to November 20. and announcement to that effect was made The failure of Congress to pass an administration bill to strengthen the federal reserve law however, and the strident cry of the south for help have moved the financial directors or the nation to return 10 the first date and open up on November t.
 Open November l6
 Washington, October 25.--Thes 12 federal reserve banks of the new banking sys- tenn will be opened for business Novem- Der 1e This was officially announced today .i
 Secretary MeAdoo. authorized by the currency act to name the opening date, made the announcement. His choice of the 18th was made despite the recent rec ommendation Of the directors and gov ernors of the F banks against opening before November 30
 Mir McAdoo declared he had reached his decision after discussion with the fed- eral reserve board and becaus emer- eency conditions in the souti e be- lieves the opening of the banks ,sp pacally helpful. there, will benefit business in all sections.
 In statement tonight the secretary made 1t clear that under the new system the federal government will be able to deposit from the general fund of the treasury in reserve banks to aid pro- ducers of staples. The new reserve Sre- duirements, he pointed out. will release more than $40o.000,00 600 of money, now held by national banks as reserves and will add greatly tU the loapins power of the banks.
 McAdo0's Statement
 The statement in part follows;
 ''I have deterninedsto announce on the 18th day of November, 1914, the establish ment of the federal reserya banks in all the federal reserve districts. sOn that date the. new reserve reqiiirefaehts for ma tional banks; as prescribed by the act, will become operative.
 T am itnpeled to this decision par
 
 ditions in the south, and the confident | belief that the prompt opening of the 1 reserve banks will be very aqlpfu to the ! cotton sipia tion and to general business ip all sections of the couptiy.
 ''rhfsrconclusion has beeir feached after l u thorough discussion with my associates | on the federal reserve board, Who arc | CO., operating cordially with mi, and also |, after fnlr consideration of lefyiews ex- pressed by the directors or the federal | reserve board t fk4.l fssf |
 "T am fully aware of tho phr sical diff 1 ficulties that must be overcoide to set | the reserve banks, in motion .on, tho i6th | of November but the directors of these | banks represent the, highest .is gree of | American banking ability. and I ain sure | that not only can they meet the situation. 1 but that they will cheerfuily take up the
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