New-York tribune., 1914-10-22
Thinks ltWrong That Con
fidence Is Lacking in
Business Situation.
RESERVE DIRECTORS
VOTE FOR NOV. 30
Secretary McAdoo and Paish to
Meet New York Financiers
Tomorrow.
From The Tribune Bureau.


Washington, Oct. 2l.-President vii.
son told the directors Of the Federal
Reserve banks to-day that the only
thing lacking IN the present busines,
situation was confidence. lie said ther,
was a psychological element involved -
state of mind which should be cor.
Tected in ourselves; that the country
should feel that there was nothing ia
wait 70 in putting business upon the
fcoting upon which he hoped 1t would
remain for many years.
my feeling about the present situs.
tion IS this, gentlemen: The only thing
lacking is confidence" he said. "The
circumstances of the world are extraor.
binary, but we ought not to allow our
mental attitude to be extraordinary
We are more nervous than there is
cause for, and il we 20 about business
as If nothing were happening business
VIII take care OF US as we take care OF
it. That is my conviction. will not
again use the word psychology but
there is psychological element, there
is state OF mind involved in this
thing which il would be very useful if
we were TO correct, and the way TO cor
rect IL with others, perhaps, is to cor
rect 1t in ourselves-to feel that there
Is nothing to wait for in putting bust
ness upon the footing upon which il is
TO remain, hope, for a great many
years TO come"
The President talked TO the Reserve
Bank directors in the White House.
where they called to meet him. II was
apparent that the presence Of so many
bankers made a deep impression, be-
cause the President said that he did
not expect TO say what he did say when
he started to talk to them.
He told them he congratulated the
country upon being in the hands in
the matter of banking of such body
of men.
81 believe. gentlemen" he continued,
that we shall look back upon the be-
ginning of this system with genuine
satisfaction and that it will give the
country more and more satisfaction as
it is developed in operation.
For my own part ! believe that the
best thing that can be done for the
country is to open the banks at the
earliest possible date; otherwise VIC
should seem TO doubt their efficiency.
Otherwise we should seem 10 discrcdit
In part the very thing that We are un-
dcrtaking."
A recommendation that the federal
reserve banks be opened on November
so, instead Of November 10, as pro-
posed by the Secretary Of the Treas
ury, was made by the directors Of re
serve banks, who ended their confer
ence here to-day. The vote on the
question Of opening was close, thirty
five directors favoring the proposition
to open on November Is and thirty
seven that for opening on November 90.
Most of the opposition to the earlier
date came from the directors repre-
senting the reserve centres, such as
New York, Chicago and st. Louis The
of the Southern banks
were almost unanimously in favor Of
the earlier date, expressing the opinion
that the establishment Of the reserve
system would aid the Southern States
which have been stricken by war con
ditions and the suspension of cotton
shipments. The objection was made
that in the larger cities and reserve
centres arrangements for opening the
banks could not be completed by No
vember 16. In Chicago and st. Louis
governors have not yet been appointed
Members OF the Reserve Board, how
ever, called attention to the fact that
the action of the directors was only
advisory, and that the Secretary of the
Treasury might still decide on the
earlier date for the opening. The Re-
serve Board will consider the recon-
mendation tomorrow.
The directors Of the banks will de-
vote themselves to the task Of arrang-
ing the details for the opening. II was
said to-day that several sites for the
New York bank were under consider
alton. and that there would be no diff
fculty in securing satisfactory quar-
ters.
The conference of the Secretary of
the Treasury with Sir George Paish
and Basil Blackett, representing the
British Exchequer, and representatives
OF the New York bankers will be held
on Friday afternoon. Invitations to
New York bankers have already been
sent by Secretary McAdoo, but the list
will not be made public until their ac-
ceptances have been received.