The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-11-19
Secretary McAdoo Signs. For
NAL Statement Announcing
New Financial Machinery
Is Ready For Business.
DIRECTORS ARE HOPEFUL
This Is Financial Fourth of July
Says Warburg-Banks VIII
Limit Activities Until
Well Established.

Washington, Nov. 1.-THE countro
today entered on a new era in fits
banking and currency affairs. when
Secretary OF III Treasury McAdoo Of
fciaiiy announced the establishment OF
IL federal reserve banks, and the
opening OF the new federal reserve sys-
tenn. Although without formality, the
Importance OF the opening Of the new
system is fully realized here and
throughout the country.
That It will go far to make credit
conditions easier throughout the Uni
ted States, not merely now but per-
manently, Is the expectation, Many
believe b a 1t will go far to make the
United States the dominant power Of
the world. The immediate effect, as
estimated by Comptroller Williams,
VIII be to release $3.50, 600, 900 in gold
and legal tender which will form the
basis for a possible loan expansion OF
$1.000,0 0O. 600.
The secretary sent the following tele-
gram OF congratulations to the federal
reserve agent and governor OF each OF
the federal reserve banks:
Please accept my cordial c~ongratula-
tons upon the opening of the federal
reserve bank of your district and my
sincere commentator on the effective
work you lave lone in preparing the
bank for business in the short time
allowed for h opening. / am sure
that the federal reserve banks will
serve a great and benefcient purpose
in the future of our country and i am
sure that this department and the fed
eral reserve board nay count On your
loyal cooperation in this important
work and duties which have been con-
fided to you. My hearty good wishes
for your success"
Financial Fourth Of July.
Paul M. Warburg, possibly the most
experienced banker OF the federal re-
serve board, today declared that No
vember 16, might be considered the
Fourth OF July in the economic life of
the United States, marking the founda-
ton Of the nations financial emancipa-
ton.
"The new banking system, wisely adj
ministered,S' said Mr.. Warburg, will
prove to be the means not of initiation.
but OF safety. independence and gradual
healthy expansion. How soon we may
become a world power, equal I'm
strength and independence to those OH
whom we have had to lean until now.
will depend upon our ability to avail
ourselves of the opportunity now open
to us. We are starting u today am
bilious of attaining this end, but we
are still far removed from goal.
With a spirit prevailing of unselfish
moderation and mutual helpfulness
Will "a AOAoA PAcAAAAAAAA5 dAu IA AOAAOSS "a
purpose, we are certain to overcome the
obstacles that still block our way both
within and without"
First Operations Limited.
The IL banks designed to take care Of
the commercial needs of the entire ma
tion are located in the following cities:
Boston. New York, Philadelphia, Rich
mond. Atlanta, Cleveland, Chicago,
Minneapolis, st. Louis, Kansas City,
Dallas and San Francisco.
For the present the operations of
the banks will be limited largely to
the rediscounting OF notes, drafts and
bills of exchange, but as experience Is
gained steps to have them exercise
their other functions unesr the cur
rency act will be taken. The directors
of all the banks have been selected,
the board has named its representative
for each. and suitable quarters have
been secured in all the IL cities.
1871 Member Banks. .
Officials here will watch the pro-
gress of the system with the utmost in
terest. It starts on its mission with
1911 member banks. Their authorized
capital Is put at N06, 795, 800, Of which
one-sixth has been called and is In
their vaults. The exact figures for the
cash reserves In all IL banks has o
been accurately computed, but the es-
innate put the amount at close to
$3.50, 000, 900 drawn under the law from
the present reserve agents of member
banks. .....
The reserve banks begin operations
at a time when members of the board
feel that this is an excellent opportun-
ity to test the value of the system. On
their ability to discount commercial
paper has been counted upon as one Of
the to loosen the purse strings
OF banks, provide machinery for car
ing for crops and generally meet busi-
ness needs.