Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-01-19
A I | A \ | A
AHEAD IN
RACE, HI:
SAYS
New Era of Prosperity and Busi-
ness Freedom Predicted Be-
cause of New Law.

Speaking before more than $50
bankers of Georgia assembled at
the Capital City Club, United
States Senator Hoke Smith Mon.
day predicted the dawn of new
era of prosperity as a result Of
the passage of the currency bill
and expressed the belief that At
lanta was almost certain to get
one of the regional reserve banks
Senator Smiths speech was tho
feature of the banquet, which, while
not directly connected with the move-
ment to win for this city one of the
new institutions, constituted a dis
tinct boost for the cause
Senator Smith said that at first he
had feared Georgia was to be made
a part of the district to be served
from New Orleans and for that rea-~
son had insisted on having the clause
providing for but eight banks changed
to read from eight to twelve"
A new business freedom was pre-
dicted by the Senator as a result OF
the new bill, which, he said, provided
an elastic currency that had long
been needed
Sees New Freedom for People.
Senator Smith said:
Il have absolute confidence shat
the currency bill passed in December
will bring a new freedom to the
American people and that it will be
especially beneficial to our own secI
ton. | look forward with absolute
assurance to a period of great pros-
perity, and this section of our Union
is now known everywhere to be the
section TO which will come the great
est growth
Il wish to point out some of the
features of the new banking bill that
all may see its certain value.
"All lines of business at times dur
ing each year require more money or
currency than their ordinary capital.
This is equally true of manufacture
ers, merchants and farmers, and 1t is
especially true when a great crop like
cotton is to be moved.
Banks should be prepared to meet
the requirement in their different los
calities, and the success with which
they meet it involves the welfare OF
the clerk in the store, the laborer in
the factory. and the small as well as
the big farmer, for it affects the sale
of crops, the continued operation OF
factories, and the business of the
merchants.
Expenses Exceed Interest.
Banks accept the custody of de-
posts, making it easier thereby for
the customer to use his funds and
also furnishing places of safety for
those funds.
THE expense of conducting bank
exceeds the interest it receives for
loans of its capital and profits must
be made from money of depositors.
Reserves kept by banks are por-
tions of their depositors' money set
apart 10 PlotSSI uePOoi'oAS 0ii" ASep
banks in position to meet any special
call of depositors.
The banking and currency act
passed in December was intended to
overcome undenied defects in the old
system, and benefit not alone banks,
but the entire public.
Under the old system bank re-
serves were concentrated in central
reserve cities, and chiefly in New
York City. Two per cent interest
was allowed on them. The reserves
were chiefly loaned on call for spec
uative purposes. In case of extreme
stringency the reserves were not
available to the banks.
There was no provision under tha
old system for increas of currency in
time of stringency. The banks coui&