Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1914-02-20
Secretary McAdoo, After
Trip Over Country Reports
Strong Financial Feeling
REPORT is READY SOON
Information Collected on
Tour Will Be Studied In
Creating Reserve Cities

federal reserve bank organization
committee is back in Washington af
ter a five weeks trip through the
country. In a statement issued to.
night it announced that it's selection
of federal reserve cities and defni-
tion of reserve districts would not be
made until careful consideration had
been given to the information accumu-
lated on the trip The statement said
the committee, Secretaries McAdoo
and Houston. found the country pros
porous and learned that bankers and
business men are greatly interested
in the new banking system and con-
fident of it's success. In supplement-
al statement Mr.. McAdoo asserted he
hoped the new system would be estab-
lished in time to take care of crop
moving contingencies next year. but
that if it were not the treasury de-
partment would stand ready to place
it's funds again at the disposal of busi
ness men.
Gvi0CuSC9 VI TIOSPCIISy
The committees statement in part
said:
"In every section of the country the
committee has found a practically un.
animous conviction among bankers
and business men that the currency
bill will bring about most beneficial
changes in the business of the country.
So The committee was presented
everywhere with overwhelming evil
dence of the enormous economic
strength Of the country and of the
rapid progress of every section. The
fact that the nations banking resourc-
es as a whole made enormous ad-
vances every IL or Is years, approx
mately doubling in each such period.
was made evident; while this is true
of the country as a whole, it was
shown that certain sections are ad-
vancing with more rapid strides than
others, and that the country is funda.
mentally exceptionally sound and
strong economically. The facts AMI
figures submitted to the committee 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.
Remove Artificial Conditions
"The committee was impressed by
the frank admission of bankers
throughout the country that the pres
ent banking system not only encour-
ages, but actually has created strik-
ing artificial conditions of banking.
With practical unanimity the opinion
was expressed that the new measure
will restore normal conditions with
greatly resulting benefit; that the pre-
q sent system not only furnishes no
protection in times of real stringency,
d but also in times of real prosperity,
especially when there are bountous
crops, makes it impossible to NEE;
the conditions, and that there has
been presented the singular contra,
y diction of having bankers thrown into
n fear of panic by the emergency OF
wealth. The bankers were unan
imously of the opinion that the es
q tablishment of this reserve system Will
no longer make our prosperity peril
and that it will relieve them of ap-
prehension and distress in those cir
cumstances and give confidence ant
stability to business generally.
ALREADY practically all the capita
represented by the national banks has
come in. A number of state banks
Il have applied for national charters ant
n many have applied for membership ii
n the federal reserve system. In ever!
state in the union which the commit
II tee has visited it has heard expires
sions from governors, banking com
missions and others to the effect tha
where there is any disability agains
subscription by state banks that dis
a ability would be removed, and further
~ nression that state banks, which
were eligible would very general.
seek to enter the system
Nothing to Hamper Business
Here is Secretary McAdoo's state
ment:
"In a few instances the question
n was asked if the new federal reserve
81 banks would be organized in time Il
Ia take care of the crop moving conting
&$encies next fall 1t is hoped that tn
ystem may be established before tina
Dme, but if it should not be. the re
H ources of the United States treasur
vill be placed again at the dispose
CONTINUED on page 81