The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1914-02-26
NEW BANKING SYSTEM.
AcAdoo Hopes Reserve Banks Will
be in Operation Soon.

nOunced that It's SelectlOn OF reueI al
reserve cities and definition of re-
serve districts would not be made
until it had carefully considered in
formation accumulated on the trip.
-he statement said the committee
found the country prosperous and
learned that bankers and business
men are confident of the success of
the new banking system.
In a supplemental statement Sc
cretary McAdoo declared he hoped
the new system would be established
in time to take care of crop moving
contingencies next year, but that II
it were not the treasury department
would stand ready to place its funds
again at the disposal of business
men.
Committees Statement.
The committees statement in
part:
1--WE have spent practically from
the 4th of January to the present
time in hearing the views of business
men and bankers on the problem
of dividing the country into not less
than eight or more than twelve dis
tricts and of locating in each district
the main Office of a Federal reserve
bank. OF the two questions the divi-
sion of the country into districts
is the more important and difficult.
The committee asked those who ap-
peared before it to direct their at
tention to these two problems.
"a great many able and impartial
business men and bankers have sub
mitted their best information and
opinions, and always in spirit of
great fairness.
''The committee has held hearings
in eighteen cities and has heard
from every community of conse-
quence in the sections of the country
it has visited.
Confidence in System.
t'In every section of the country
the committee has found practical
ly unanimous conviction that the cur
rency bill will bring about most
beneficial changes in business. The
committee was presented with over
whelming evidence of the enormous
economic strength of the country
and of the rapid progress of every
section. The fact that the nations
banking resources as a whole made
enormous advances every twelve or
fifteen years, approximately doubling
in each such period, was made evl-
dent; while this is true of the coun-
try as a whole, it was shown that
certain sections are advancing with
more rapid strides than others, and
that the country is fundamentally
exceptionally sound and strong eco
nomically. Facts and figures in
every part of the country show amaz-'
ing growth and strength and disclose
a condition of financial, industrial,
commercial and agricultural sound
ness and prosperity that leaves no
doubt as to the future.
Flaws i'm Present System.
'"The committee was impressed by
the frank admission of bankers that
the present banking system not only
encourages, but actually has created
artificial banking conditions. With
practical unanimity the opinion was
expressed that the new measure will
restore normal conditions with great
resulting benefits; that the present
system not only furnishes no protec-
ton in times of real stringency, but
also, even in times sof great pros
perity, makes it impossible to meet
the conditions, and that there has
been presented the singular contra
diction of having bankers thrown in
to fear of panic by the emergenee OF
wealth. Bankers unanimously We're
of the opinion that the establishment
of this reserve system no longer will
make our prosperity peril and that
it will relieve them of apprehension
and distress in those conditions and
give confidence and stability to busi-
ness generally.
Field Survey Complete.
''The committee has finished its
survey in the field. 1t has yet to
rake examination of importan: docu-
ments and data, and can not render
any decision until it has thoroughly
examined this matter.
ALREADY practically all capital re-
presented by the national banks has
come in. A number of State banks
have applied for national charters
and many have applied for member
ship in the Federal reserve system.
In every State the committee has