Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-04-19
CURRENCY system
To HELP FARMERS
First Step Is to Meet De-
mands for Money to
Move Crops.
M'ADOO IS CONFIDENT
Willingness of Bankers, to Cooperate
Causes Treasury Secretary
to Expect Great Things
M'ADOO IS CONFIDENT
(BY JONATHAN WINFIELD

Washington, April lone Of the
first real benefits to accrue from
the new currency system, the flrst
step in the inauguration which Was
taken by the organization committee
when it named the federal reserve
district and CT Lies, is movement 10
meet The demands Of the farmers IN
the crop transporting periods OF the
fall. While the time is short III which
20 put the new system into work
ing condl ton for the next crop NOV
ing, Secretary OF the Treasury Will
liam McAdoo believes that bankers
throughout the United States Will CO.
operate with the federal reserve
board, name directors and Immediate
ly subscribe the capital stock OF the
reserve banks. Should the system,
however, not be in working order by
crop moving time, Mr.. McAdoo states
that the treasury department will
again send into the various districts
all the millions Of dollars necessary
to remove the crops or prevent tlgh
money conditions.
+ The committee is. aware that
emergency resources for the crop
moving period will be available either
! through the repetition of last years
crop loan or under the Aldrich-V eer-
land act, which has been extended
until July, 1915" said Mr.. McAdoo.
But it is the desire of the commit
tee to demonstrate the ability OF the
new system to meet the test of the
crop movement without recourse to
these emergency measures.
While there remains a tremendous
amount of work to be done before
actual banking business can be trans
acted through the reserve banks,
treasury officials believe. that with
the progress that has been made so
far, the work of the federal reserve
board soon to be appointed by the
president, will proceed rapidly.
Law Confusing.
versant with the. provisions OF the
Owen-Glass measure as they should
be, Blu this is not lobe taken as a
reflection upon the financial minds.
Certain sections of the currency
measure were clouded by the VERDI
age used by the trainers of the act
and, as usual many constructions OF
the sections are given by various ex-
ppIlS WHO nave ICdO tAu tCtCllpSCu
to explain them.
Sections 19 and % of the measure
relating to demand deposits, and the
prohibitions placed upon officials,
directors or employees Of member
banks, are not general understood.
The organization committee, however,
has put Out the don't worry" sign,
explaining that in the near future,
correct interpretations of all sections
of the act will be made by the fed
eral reserve board and that all the
bankers will have to do is to "si.
tight and wait.
And this in eject is just what the
federal reserve boards business will
be. ut is charged under the law with
the administration Of the nations
currency system, and in short the
running of the financial affairs of
the country. From time to time this
board will hand down decisions re-
lating to various sections of the act.
1t also viii make regulations gov
erni2g the conduct OF the reserve
banks and branch banks that will be
established so as to facilitate banking
conditions 1t will be the governor
of the financial machinery of the
country.