Evening star., 1914-11-16
Nations New Currency Sys-
tenn Put in Operation Today
by Formal Order.
MILLIONS IN THE VAULTS
READY FOR CIRCULATION
Aggregate Of the Federal Reserve
Notes Ordered by Controller
Exceeds $3.50, 100000.

twelve federal reserve banks were es-
tablished and ready for business. 1t
was the final step required to set in
motion the nations new currency sys-
tenn, and it found the regional banks
ready for operation.
The Secretary sent the following tele-
gram of congratulations to the fed
eral reserve agent and governor OF
each federal reserve bank:
Please accept my cordial congratu-
lations upon the opening of the federal
reserve bank Of your district and my
sincere commendation upon the ehec-
tive work you have done in preparing
the bank for business in the short time
allowed for the opening. 1 am sure
that the federal reserve banks will
serve a great and benefcent purpose
in the future of our country, and 1 am
sure that this department and the fed
eral reserve board may count upon
your loyal cooperation in the impor-
tant work and duties which have been
confided to you. My hearty good wishes
Tor your success"
Likened to Fourth of July.
Paul NJ. Warburg, possibly the most
experienced banker on the federal re-
serve board, today declared that No
yember 16 might be considered the
Fourth of July in the economic life OF
the United States, marking the founda-
ton of the nations financial emanci-
patton.
George ]. Seay, governor Of the Rich
mond reserve bank, was the nrst Of
flcer to answer Secretary McAdoo's tel
egram. His message announcing that
the Richmond reserve bank had open
ed it's doors for business reached the
Treasury Department within an hour
after the formal announcement was
sent out.
The banks in each of the twelve
districts were prepared for the launch
ing of the nations new currency sys-
TEN. Every step that the reserve
board thought necessary for this nrst
great change in the countrys mode OF
banking in the last fifty years had
been taken. While directors of the
several banks had had only three
weeks in which to perfect their organ
izatlons, they had promptly responded
they take up their-work today.
Location of Regional Banks.
The regional banks which will serve
as centers to provide for the CONNER
cial requirements of the country have
been established in New York. Boston.
Philadelphia, Cleveland. Chicago, Min
ndanolis, st. Louis. Kansas City. At
iants, Richmond, Dallas and San Fran
cisco.
Their operations for the next few
months will consist largely of the re-
discounting OF notes. drafts and bills
of exchange. Later their field will be
extended to permit them to exercise
remaining functions defined by the cur
rency law.
In the new system are 1871 member
banks, with an authorized capital
placed at $106.795,6 500. One-sixth of
that amount has been called in and
placed in their vaults. Cash reserves
in the twelve regional banks are esti-
mated at nearly $250,0OU.000. drawn
under the currency law from present
reserve agents of the member banks.
Members Of the federal reserve board
felt today they had established the
system just when conditions present.
ed excellent opportunity to test Its
value Ability of the reserve banks to
rediscount commercial paper has been
looked to as q means of providing
financial machinery for the movement
Of crops and meeting general business
needs.
0SCGSIdAy 1AoNSo Sse~tS~
49,. .ho o.,;, NJ tho
~. ~.
tarx ~ Of business and finance In the
United States. Secretary McAdoo added:
ut is believed that they will put an
end to the annual anxiety from which
the country has suffered for the past
generation about insufficient money
,,. +o NOV. +b. crons eac oh
a mil, civ. s,,cb t.h,,,tv +o tbe
-. g.. ~.
panKihe ous'hess liza. 'he o.e
fluctuations in interest rates and avail
.h,a credits which have characterized
Ill, ~ ao,+rorod
banking IN the past Will oe oes'foSeu
permanently.
svstem according To its inter
nret.rs are to he found in the elias
t;citv l. vii, give to recognized paper
enrrsncv The federal reserve notes.
,,hich nroba biv will repIace the IA,
r,iiiar nationaI hank notes. will he ia
n''aS commarciai naner arising ont
actmal business transactions II is
oesas .n. o accnrdinr to the f,ow in the
tioe y. nhiigations bavine hacL of
them Ia,se 81 a III .,'.eh
gional Dallas sxnsctsd 70 nd manhsr
banks having good paper. but needing