New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-29
GOLD TO FLOOD
RESERVE CENTRES
Federal Board Asks Mem
Der Banks Not to Use
Checks for Deposits.
TFrom Tho Trbun. Bureau. ]

Washington, Oct 2S.-Tho signal was
gwen by tho Federal Reserve Board
to-day for the transfer on November
10 of the reserves scattered among the
banks Of the country TO the twelve
Federal Reserve banks which will be
opened on that dnte. In accordance
with the instructions of the board n
Hood OF gold and lawful money Will o.
poured into the reserve centres, the
member banks being cautioned not 70
make payments by draft.
From all directions in the twelve re
serve districts the actual gold by the
pound or hundreds Of pounds and gold
certificates and lawful money almost
by the bale will he moved 10 the new
reserve vaults. The board also sug
gests that payments on account of the
first instalment of capital stock in the
new banks due November be made in
the same way.
In the general notice to member
banks the Reserve Board says:
ut is, of course, clear that II the
banks in nOn-reserve cities undertake
to make the necessary deposit of re
serves with their Federal Reserve
bank by renting checks or drafts on
banks in reserve cities (Which checks
or drafts can be received by the Fed
eral Reserve bank for collection only
there may result an unnecessarily
heavy withdrawal of funds from the
banks in reserve cities. In the same
manner, if banks in reserve cities make
Iemittances of checks or drafts on
banks in central reserve cities, an I'M
necessary burden may be placed upon
the latter.
"The deposits of reserves with Fed
eral Reserve banks must be made Ia
gold or lawful money, aud in order
that the withdrawal of funds from the
vaults of member banks may be as
nearly uniform as possible, and so dis
trbuted as to relieve eny particular
section or sections Of unnecessary bur
den, the Federal Reserve Board urges
all banks 70 ship from their own vaults
gold or lawful money, The Federal
Reserve banks have been authorized u
assume and pay the express charges
involved in making such shipments.
"The foregoing suggestions also ap-
ply to payments on account of the first
instalment of capital stock, due No
vember ..
"In view of the advantage to be de-
rived from the deposits of gold, which
may be used as reserve for Federal Re
serve notes, il is strongly urged by the
board that deposits of reserves in the
Federal Reserve banks be made, so far
as practicable. in gold or gold certiii-
Gates.
due notice Of the establishment o.
the Federal Reserve banks on Novem-
Der Is will b. sent each member bank
by the Secretary OF the Treasury, and
no transfer Of reserve can be made
until this il done.
Member BANKS of large resources
will greatly facilitate the physical
work Of counting reserve money VI
they win send gold certificates in as
large denominations &c possible, or
clearing house orders calling for gold
certificates or gold already counted by
the clearing houses.
"The Federal Reserve Board appeals
to the patriotic spirit of all member
banks. large and small, TO do their
utmost in facilitating the difficult work
now thrown upon the officers OF tn
newly created reserve banks, and 10 40
all in their power TO secure for tho
new system the greatest possible sue
cess from the beginning"