The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-04-07
CURRENCY SYSTEM
READY BY FALL
ORGANIZATION COMMITTEE Is
ANXIOUS TO DEMONSTRATE
ITS EFFECTIVENESS.

Washington, April G.-Every effort
will be eXerted by the federal re-
serve bank organization committee
to have all banks expedite the form
al steps necessary to put the new
currency system in operation.
Members of the committee appar-
entity 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 twelve reserve
banks in the field when crop-mov-
ing time comes around next tan.
They hope to be able al that time
to demonstrate how easily and
quickly the reserve system will take
care of a situation which in prev
ious years has caused financial wor-
ry ami which last fall led to direct
loans from the United States treas
ury to national banks in the farm
ing regions.
Under the law the several steps
to be taken by the banks might be
delayed so that there would be lit
tie chance of setting the reserve
banks up before autumn, but if the
banks respond promptly there is
little reason to believe that the
organization will be deferred longer
than a few months.
Notices Go Out Today.
The committee has worked full
speed on its part of the preliminary
work and Tuesday the formal no
tice will be sent to the 7,54S banks
which ask entrance TO the system of
the location of reserve banks and
the limits of reserve districts.
With the notices will go blanks on
which banks must apply for sub
scriptions for stock in the respect
i've reserve banks. Thirty days are
allowed for banks to make the first
of the required per cent
of their capital and surplus.
AS soon as banks in any one dis
trict have subscribed the $40OO,OOO
capital necessary for reserve ban:',
the succeeding steps of organization
will be promptly taken. The re-
serve bank will be given charter
and the member banks will eXer-
else their right to elect six of the
nine directors of each reserve bank.
Wilson to Name Board.
President Wilson probably will
name the five members of the fed
eral reserve board he is entitled
to appoint by the time the banks
and the reserve banks have been
granted to them. Then the admin
istration is expected to do its ut
most to push the organization of the
system along. The reserve board will
name three directors of each er-
serve bank and with this task per
formed the banks will be ready to
operate.
OFFICIALS here are interested in
what limitations may be placed
upon clearing house associations
the new system. The re-
serve board will have much power
over such associations, but no one
in authority cares to predict how
far it might 90 toward curtailing
their activities. The board, however
is not expected to interfere with
the local functions of any such as
sociation, but its action may take
the line of lessening their grip,
in the larger cities.
Secretary McAdoo Monday nigh,
the results of direct
loans to banks at crop moving time
last fall. Treasury funds were de-
posted in 193 banks in sixty two
cities in twenty eight states to the
amount of s37,3S6,OOO. The last of
the loans were repaid by April l,
the limit set by the treasury. The
government received interest at p
per cent, a total of $260,0OO, rep
-aSentinP a clear nrofit
Mr.. McAdoo said the amount re-
luired by banks had been much
ess than he expected ana attributed
his fact to the restoration OF con-
idence when it became known that
he treasury was ready to render
such assistance.