The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-10-27
WILL RELEASE RESERVE
+ our Hundred Million Dollars
Will Be Made Quickly avail
able, and Treasury Secre-
tary Says He Means to Rush
First Aid to tine Cotton Pro-
ducing States
(By the Associated PrSs.l

(By the Associated Press.l
Washington, ID. G.. Oct. 25.-The
twelve Federal reserve banks of the
new banking system will be opened
for business November 16. This was
officially announced today
secretary McAdoO, authorized by
the currency act to name the open
ing date, made the announcement. His
choice of the 10th, was made despite
the recent recommendation of the di-
r%eCtOrs and governors of the twelve
banks against opening before Novem-
Der 80.
Mr.. MCAdoo declared he had reach
ed ms decision after discussion with
the Federal reserve board and be
cause of emergency conditions in tn
South. He believes the opening of
the banks, especially helpful there,
will benefit business in all sec
tons.
In a statement tonight the Score
eofy made 1t clear that under the new
system the Federal government will
be able by deposits from the general
fund of the treasury in reserve banks
to aid producers of staples. The new
reserve requirements, he pointed out.
will release more thar $500, coo, 600
OF money now held by national banks
as reserves and will add greatly to
lI1C lOdIlII1S power Oh the BANKS.
Secretary McAdOO'S Statement
The statement in partfollows:
Il have determined to announce on
the 18th day Of November, 1914, the
establishment of the Federal reserve
banks in all the Federal reserve dis
tricts. On that date the new reserve
requirements for national banks, a:
prescribed by the act, will become
operative.
am I'M na1lo6 To fhic 6nnicinr nov
ticularly because of the emergency
condition in the South and the conf
dent belief that the prompt opening O
the reserve banks will be very help
ufl to the cotton situation and tt
; general business in all sections of tn,
country.
This conclusion has been reached
after a thorough discussion with M,
associates on the Federal reserv,
board and also after full considera
: ton Of the views expressed by the di
. ~reCtorS Of the Federal reserve bank
: at their recent conference in Wash
ington with the Federal reserv
:. board"
4 am fully aware of the physica
difficulties that must be overcome t
set the reserve banks in motion O
the sixteenth Of November but tn
directors represent the highest de
gree Of American banking ability an
[ am sure hat not only can they NEE
the situation but they will cheerful
take up the task in the same fin
spirit Of service which animated thei
Y discussions at the Washington con
ference.
Treasury to Help South.
LAS the result of the enactment c
s the war revenue measure the part
between receipts and disbursement,
q of the treasury will soon be happil
ILL
s for the treasury to render still create
e service than it has already rendere
in helping the financial situation i
the South and in other parts Of tn
q country, where the need has AZ
peared.
"The prompt opening Of the Fec
eral reserve banks will make the a.
sistance Of the treasury dOubly pow
erful because the Federal reserve a,
authorizes the Secretary Of tt
Treasury. in his discretion, to depos
a large amount Of the honey in tt
general fund in the Federal reser,
banks and to require such banks
IF act as fiscal agents of the Unite
IS States: and also in his discretion
IT deposit the Of the govern
is ment, or any part thereof, in the r
d serve banks and to max disburs
w ments by checks drawn against sue
re deposits.
to Confer Larger Powers.
to Under the present system the Sc
s. rotary OF the Treasury cannot wi
prudence scatter the general fun
of the treasury among the great nur
= Der OF widely separated nation
u banks throughout the country. |
to the present time / W. gone as f
N in that direction as l have felt it "
lc- - or b,t with tho loroor poro
ole wise ~ So ~"
conferred by the Federal reserve a
re and the use which l may be able
1th make of the Federal reserve ban
md as fiscal agents Of the government
!. will be prudent and wise to deposit
large amount Of the general fund