New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-26
Secretary Sees Help for
South in Federal Re-
serve Act.
BIG PHYSICAL TASKS
AHEAD FOR OFFICERS
Many Of the Twelve Institutions
Yet to Get Quarters and
Organize Stats.
fIrom The Trihune Bursau. I

from The Tribune Bureau
Washington, Oct. 25.-Secretary Nc
Adoo tonight overrode the recommen-
dation of the reserve bank directors to
open the new banks November 80. and
announced that the Federal Reserve
System would become operative on No
vember 16 instead.
The earlier date was known to be
favored by both Mr.. McAdoo and Presi-
dent Wilson, who argued with the
bankers when they visited the White
House before their meeting here last
week for start Of the new system as
soon as possible. The vote for the later
date, therefore, was surprise, and so
1t came to be felt that Mr.. McAdoo
would not accept the recommendation,
but direct the opening two weeks ear
iicr, as he has done.
The opening Of the new system, it is
asserted by Secretary McAdoo, will ac-
complish much not only in the way Of
meeting the needs of the cotton states,
but of relieving the financial stringency
in the country generally. The new re-
serve requirements will release more
than $400,O0o,00 of reserve money now
tied up by the stringent requirements
Of the national bank act. which is
superseded by the Federal Reserve act.
The new act will enable the Secre-
tary Of the Treasury also 70 deposit a
large part of the money held In the
general fund Of the Treasury and, In
his discretion, the revenues Of the gov
ernment In the reserve banks, and to
require the banks to act as fiscal
agents Of the United States.
Big Task for Bankers.
II is admitted that herculean task
confronts the director. and officials Of
the twelve reserve banks who will have
charge of the opening Of the new banks
and the transition from the old to the
new regime In some Of the reserve dis
tricts all of the officers have not yet
been appointed. In practically all Of
them quarters must be prepared, with
all the necessary banking parapher-
MALTA, employees hired and sll details
arranged for the rush Of business
which will probably be encountered as
soon as the doors are opened. II is the
purpose Of the Federal Reserve Board
and the directors, IL possible. TO have
all the machinery Of the reserve banks
in running order on the opening day,
30 that there will be no delay in serv-
ing the customers, who are the member
banks Of the various districts.
The establishment Of the system will
probably have more to do with dis
posing OF the financial problems con-
fronting the United States at this time
than any other plan that has been dis
cussed. Under the present system of
scattered reserves held in individual!
financial resources of the country have
been held largely in fixed state, and
have not been available in times Of
stress because of the lack of the char
acter of mobility. The weakness of the
American financial system in this re-
spect has been the subject of general
comment among foreign economists and
financiers, who are amazed at the fail
ure of this country to take advantage
of its great stock of gold
Duty Of Secretary Of Treasury.
Secretary McAdoo said tonight:
"The Federal Reserve act imposes
upon the Secretary of the Treasury the
duty OF announcing in such manner as
he may elect the establishment of \
Federal Reserve bank in any district.
In the discharge Of that duty ! have
determined to announce on the 10th
day of November. 1914, the establish
ment of the Federal Reserve banks in
all the Federal Reserve districts. On
that date the new reserve requirements
for national banks. as prescribed by
the act, will become operative.
IL am impelled to this decision pa.-
ticularly because of the emergency con-
ditions in the South and the confident
belief that the prompt opening of the
reserve banks will be very helpful to
the cotton situation and to general
business in all sections of the country.
"This conclusion has been reached
after a thorough discussion with my
associates on the Federal Reserve
Board, who are cooperating cordially
with me, and also after full considera-
tion of the views expressed by the
directors of the Federal Reserve banks
at their recent conference in Washing
TON with the Federal Reserve Board.
~ am fully aware of the physical
difficulties that must be overcome to
sc, the reserve banks in motion on the
18th of November, but the directors %
these banks represent the highest de-