Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1914-11-16
FIRST GREAT CHANGE
IN last FIFTY YEARS
Opening of Federal Reserve Bank:
Marks New Epoch in Country's
Financial System.
READY FOR BUSINESS TO-DAY
They Begin Operations at Time When
Members Of Reserve Board Feel
There Is Splendid Opportunity to
Test Out New Methods.

WASHINGTON. November 1o.--After
months OF preparation by the Federal
Reserve Board and by the country's
bankers. the twelve Federal reserve
banks will open tomorrow for busi-
ness. marking the first great change
in the banking system of this country
in the last 'nfty years.
The twelve banks, designed to take
care of the commercial needs OF the
entire nation, are located in Boston,
New York, Philadelphia, Richmond,
Atlanta. Cleveland. Chicago. Mime
and San Francisco.
For the present their operations will
be limited largely to iscounting of
notes, drafts and bills Of exchange. but
as experience Is gained steps to have
them exercise their other functions
under the currency act will be tale:
Tic directors OF all the banks have
been selected, tho board has named its
representative for each and suitable
quarters have been secured in all the
twelve cities.
Will WATCH pROGREsS
WITH UTMOST INTEREST
officials here VIII watch the progress
Of tho system. with utmost interest
1t starts with 7.511 member banks. with
authorized capital Of S106.Ta5,60o. Of
which one sixth Is in their vaults. The
exact figures for the cash reserves In
all twelve banks have not been ac-
curately computed, but is estimated at
close 10 100000 900, drawn under the
law from tho present reserve agents
OF mcmber banks.
Tho reserve banks begin operations
at a time when members OF the board
feel there, is an excellent opportunity
to test out the system. Their ability
TO rqdiscounti commercial paper has
been counted upon. to loosen the purse
ctr nf han N lee dp N, n
taking care of crops and generally
meet business needs
The formal call fet the opening will
be sent out Tomorrow by Secretary
Secretary McAdoo said Tonight:
The opening OF these banks marks
a new era in the history OF business
and finance in this country. 1t Is be-
lieved that they Will put an end to the
annual anxiety from which the coun-
try has suffered for the past generation
about insufficient money and credit to
move the crops each year, and viii give
sLch stability to the banking business
that the extreme fluctuations In In
.tcrest rates and available credits which
have characterized banking In the past
will be destroye5 permanently.
SUPPLY ABsOElrTk,I.Y ,'
RESPONSIVE no DEMAND
Tho Federal reserve banks provide
for u system of credits based upon
commercial paper. thus at last secure
ing to the country an adequate sup
ply OF tho necessary credits to meet
the legitimate demands of business as
they develop. The supply will be alb
solutoly responsive &c, the demand, and
thus business will be freed from ,ro-
,strictionsl and Limitations from which
it, has suffered In the past because II
has not been able to receive at the
time when most needed the credit IA
clities which were essential, 10 It's
regular and proper development, The
whole country. ssto be congratulated"
The secretary, said he was gratihod
With the prompt and cheerful response
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