The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1914-04-10
BANKS BY
CROP MOVING Time.
ORGANIZATION COMMITTEE TRY
ING TO EXPEDITE WORK OF Es-
TABLISHiNG INSTITUTIONS.
WAY TO DEMONSTRATE WORTH
Value Of New Currency System Gould
Well Be Shown by Caring for
Grain Marketing Situa-
ton This Fall.

washington, April S.-EVery elliott
will be exerted by the federal re-
serve bank organization committee to
have all banks expedite the formal
steps necessary to put the new cur
Eency system in operation.
No Crisis Feared.
Members of the committee appar-
emily have no expectation that there
will be any financial crisis to face
requiring the assistance to banks
which the reserve system will pro-
vide, but they are particularly anx-
ious to have the IL reserve banks in
the field when crop moving time
comes around next fall
They hope to be able at that time
to demonstrate how easily and quick
ly the reserve system will take care
of a situation which in previous years
has caused financial worry and which
last fall led to direct loans from the
United States treasury to national
banks in the farming regions.
Banks Must Be Prompt.
Under the law the several steps to
be taken by the banks might be de-
layed so that there would be little
chance of setting the reserve banks
up before autumn, but If the banks
respond promptly there is little rea-
son to believe that the organization
will be deferred longer than few
months.
The committee has worked at full
speed on it's part of the preliminary
work, and the formal notice has just
been sent to the banks, which ask en-
trance to the system, of the location
of reserve banks and the limits of re-
serve distractions. With the notices
will go blanks on which banks must
apply 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.
Must Subscribe $4,000,o00.
AS soon as banks in any one dis
trict have subscribed the $4,O00,OOO cap
ital necessary for reserve bank, the
succeeding steps of organization will
be promptly taken The reserve bank
will be given a charter and the men,
Der banks will exercise their right to
elect six of the nine directors of each
reserve bank.
Officials here are interested in what
limitations may be placed upon clear
ing house associations, through the
Few system. TheSreserve board will
have much power over such associa-
hut ;,,
to predict how far it may go toward
curtailing activities The board, how.
ever is not expected to interfere with
the local functions of any such asso-
Citations, but it's action may take the
line of lessening their grip. particular
ly in the larger cities.
Crop Moving Loans.
Secretary McAdoo announced the re.
suits of the direct loans to banks at
crop moving time last fall. Treasury
funds were deposited in 1913 banks in
62 cities in % states, to the amount
of s37,3S6,OOO. The last of the loans
were repaid by April 1, the limit set
by the treasury. The government re.
ceived as interest at per cent
total of 100000, representing a clear
profit.
3 Mr. McAdoo said the amount re-
quired by banks had been much less
than he expected and attributed this
fact to the restoration of confidence
when it became known that the treas
ury was ready to render such assist
ance.