The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1914-11-16
Wheels Of Biggest Bank in the
World" Slowly Started in
Motion Elasticity
Is Feature
The CAPITAL is
$4,000, O,OOO.O
Banks in Boston, New York, Phila.,
Cleveland, Richmond, Atlanta,
Chicago, St. Louis, Kansas
City, Dallas, Frisco, mo.
By United Press.

Washington, Nov. 16.-The biggest
bank the world has ever seen, the fed
eral reserve bank. capital stock $780,
000,00O designed to prevent panics
and give elasticity to our currency,
opened its doors for business today
In twelve cities, Boston, New York,
Philadelphia, Cleveland, Richmond, At.
lanta, Chicago, St Louis, Minneapolis,
Kansas City, Dallas and San Francisco,
the regional banks formally began
their work. In every city and most
every town of the country, banks form
ally became members of the federal
reserve bank system.
The inauguration of the federal re-
serve bank today marks a complete
revolution in Uncle Sam currency sys-
tenn. Its builders claim it will keep too
much money from flowing into Wall
street to the detriment of the rest of
the country, enable one section of the
country to better aid the business of
another section in time of need,
strengthen credit in times of stress
and thus, by keeping the money sup
ply evening distributed and more cas-
lily available, cure the country of the
panic disease which has been recur-
ring about every 20 years for the past
century.
The way it is going to affect the av-
erage person is something like this: If
John Smith in Kansas has wheat
crop that he wishes to have and if
Kansas is short of money then the
federal reserve board will aid the Kan
sas City regional bank in getting
money at any or all of the other eleven
regional banks. 1t may be that At
lanta hasn't the money to spare, or
that New York may be financing for
Elm shipments, or that Boston needs
her money for her mills, but San
Francisco may have plenty of cash to
spare. If so, then the San Francisco
money will be used to move the wheat
crop in Kansas, the entire system of
credit being so co-ordained that link
ed together as to have banks act as a
unit in helping each other, so that
there should never be a strtingency OF
currency as has happened many times
in the past. but that the entire re-
sources of the whole country should be
ready on demand to help any needy
section.
The new banking currency act, ap-
proved by the president on December
20, 1918, replaces the system known as
the national banking system, inaugu-
rated towards the end of the civil war
Under the old system, the national
bank note currency was based upon
government bonds deposited in the
| treasury and the currency thus issued
has been classed by economists as
bonds secured currency. This plan was
devolved, not only to nationalize and to
unity the currency-which had there
! fore consisted Of notes issued by state
banks--but as well to create a market
for United States bonds, and in this
way to sustain their value. 1t was sue
cessful entirely in the latter purpose,
but it outwore its usefulness as bank
ing system because of its entire lack
OF elasticity.
Every national bank is a member OF
the federal reserve bank system and
many state banks took advantage OF
the opportunity to become members.
The largest district, the Chicago dis
trict, has 952 member banks, and the
smallest district, Atlanta, has 372 mem
Der banks. Each member bank has OBJ
tanned it's membership by subscribing
to the federal reserve bank of its dis
trict in the amount equal to six per
cent of its paid UP capital stock and
surplus. The federal reserve bank
does not do business with the public
in the sense that banks usually do; il
may better be described as a bank OF
banks" It is a depository for a GER
tain proportion of the reserve Of all the
member banks, and in addition may