Norwich bulletin., 1914-04-07
To Expedite
 Reserve Banks
HOPE TO HAVE SYSTEM WORK
 ING BY CROP MOVING TIME.
NO CRISIS LOOKED FOR
Organization to Promptly Follow Sus- seription of the $4,ooo, 900 Necessary in Each District.

Washington, April 6-Every effort will be exerted by the federal re- serve bank organization committee to have all the banks appellate the form al steps yet necessary to put the new currency system into operation.
 Members of the committee apparent ently have no expectation that there will be any financial crisis requiring the assistance to the banks which the reserve system will provide but they are particularly anxious to have the twelve reserve banks in the field when the field crop moving time comes next fall. They hope to be able at that time to demonstrate how easily and quickly the reserve system will take care of situation which in pre- viouS years has caused financial wor- ry, and which last fall led to direct loans from the United States treas ury to national banks in the farming regions.
 Formal Notice to 7,548 Banks.
 Under the law the several steps to be taken by the banks might be de- layed so that there would be little
 chance of establishing the reserve banks before autumn but if the banks respond promptly there is little req son to believe that the organization will be deferred longer than a few months The committee has worked at full speed on it's part of the pre- hminary work. and tomorrow the formal notice will be sent to the 7,64S banks which asks entrance to the system, of the location of re-
 serve banks and the limits of re- serve districts. With the notices will go blanks on which banks must ap- ply for subscriptions for stock in the respective reserve banks. Thirty days are allowed for banks to make the first payment of the required six per cent, of their capital and surplus.
 As soon as banks in any one dis trict have subscribed the S4,000. 900 capital necessary for a reserve bank, the succeeding steps of organiza- tion will be promptly taken. The re- serve bank will be given a charter and the member banks will exercise their right to elect six of the nine directors of each reserve bank
 President Wilson probably will name the i've members of the federal re- serve board whom he is entitled to ap- point by the time the banks and the reserve bank charters have been granted to them.
 Then the administration is expected to do it's utmost to push the organ ization of the system along. The re- serve board will name three directors of each reserve bank and the banks will then be ready to operate Powers of Reserve Board. OuuCld1S u0I0 were interested (Oudy in the uestion of what limitations may be placed upon clearing house asso- citation through the new system The reserve board will have much power over such associations but no one in authority cared today to predict how far it might go toward curtaining their activities. The board, however, is not expected to interfere with the local functions of any such associations, but it's action may take the line of lessening their grip. particularly in the larger cities.
 Secretary McAdoo tonight an nounced the receivers for the direct loans at banks at crop-moVing time last fall. Treasury funds were de- posted in 193 banks in 62 cities, in 2S states, to the amount of $37, ,3S6, 900. The last of the loans were repaid by April 1, the limit set by the treasury i The government received as interest at 2 percent, total of $260, 900 represent l ing a. clear profit MT. McAdoo said the amount required by banks hao l been much less than he expected, and | attributed this fact to the restoration l of confidence when it became known | the treasurer was ready to render ! such assistance.