Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-11-16

WASHINGTON, Nov. 16.-Financial
panics in the United States are a
thing of the past.
This was the position taken today
by Secretary Of the Treasury McAdoo
and the members of the Federal Re-
serve Board. Their advices from the
twelve cities in which the new Fed
erai Reserve Banks threw open their
doors today for the first time in
dicated that every preparation was
completed for good work by these in
stitutions Through them, the Fed
aral Reserve Board hopes and be-
iieves it will be able to SO equitably
adjust, shift and mobilize the finances
Of the country that a financial panic
with its resultant disaster will be
impossible hereafter.
The secretary sent the following
telegram of congratulations to the
Federal reserve agent and governor
Of each of the Federal Reserve
tanks.
PLEASE accept my cordial congra-
tuIations upon the opening of the
Federal Reserve hank in your district
and my sincere recommendation upon
the effective work you have done In
preparing the bank for business in
the short time allowed for the OPEN
ing. ] am sure that the Federal Re-
serve banks will serve a great and
beneficent purpose in the future of
our country and I am sure this de-
partment and the Federal Reserve
Board may count upon your loyal
cooperation in the important work
and duties which have been confided
to you. My hearty good wishes for
your success"
Richmond First to Respond.
George j. Seay, governor of the
Richmond Reserve Bank, was the first
officer to answer Secretary McAdoo's
telegram. His message announcing
that the Richmond Reserve Bank had
opened its doors for business reached
the treasury department within an
hour after the formal announcement
was sent out.
simultaneously with the opening of
the reserve banks are signs of return
ing confidence among investors. This
is shown by sharp advances in Sc
curities during the last ten days and
the removal of all restrictions on deal
ings in unlisted stocks. The reopen
ing of the New York Stock Exchange
is being hastened by the growing de-
mand for securities and the rapid
building UP of a trade balance with
Europe, which will Offset any lIquila
ton by it in American stocks. and
bonds.
Paul M. Warburg, possibly the most
experienced banker on the Federal
Reserve Board, today declared that
November 18 might be considered the
Fourth of July in the economic life
of the United States, marking the
foundation of the nations financial
ennanciDatiOn,
THE new banking system wisely
administered" said Mr.. Warburg.
will prove to be the means, not of
imitation, but of safety, independence
I and gradual, healthy expansion. How
soon we may become world power,
equal in strength and independence
90 those on whom we have had to
lean until now, will depend upon our
ability to avail ourselves OF the op-
portunity now open to us.
I'VE are starting out today am
bilious of attaining this end, but we
are still far removed from our goal.
With a spirit prevailing of unselfish
moderation and mutual helpfulness,
with careful planning and singleness
of purpose we are certain 10 over
come the obstacles that still block
our way both within and without"
The new regional banks opened ac-
cording to set program. Not all had
permanent quarters and some Were
doing business with borrowed stats.
But they started out with the most
remarkable powers of any banks ever
established in the United States, and
they will, the officials here de-
clare so manipulate the national
finance that there will always be a
stream of currency flowing steadily
from point to point in the country, SO
that hereafter the so-called Wall
Street banks, with their big city"
connections, cannot corner the supply
and so force the rural banks to pay
high premiums for needed cash.
1t is also declared that with the new
banks in existence there is possible
for the first time in the United States
a definition of what really is personal
paper. The regulations of the reserve
board and the operation of the banks
they control will, it is claimed, legiti-
matize commercial transactions and
clear up much that in the past has
been debatable ground between the
banker and the legitimate borrower.
The inauguration of the Federal
E Reserve Bank. the biggest bank in
#the world, with a capital stock of
& $40. .O00, ZOO, 900, today marks COM
plete revolution in Uncle Sans cur
Hfency system. Its builders claim 1t
Hili keep too much money from flow
Ing into Wall Street to the detriment
tf the rest of the country, enable
me section of the country to better
Ia the business of another section
- time of need, strengthen credit in
ines OF stress and thus, by keeping
csntinasd on Psse .. Column -