Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-02-24
NEW CURRENCY SYSTEM
Likely to Be Adopted Before Harvest
Time,

Likely to Be Adopted Before Harvest
Time.
The Federal reserve bank organiza-
ton committee, back in Washington
after a five-weeks' trip through the
country in statement last Wednesday
night, announced that its selection of
Federal reserve cities and definition of
reserve districts would not be made un-
til 1t had carefully considered informa-
tion accumulated on the trip. This
statement said the committee found the
country prosperous and learned that
bankers and business men are conf
dent Of the success Of the new banking
system.
In a supplemental statement Secre-
tary McAdoo declared he hoped the
new system would be established in
time to take care Of crop moving con-
tingencies next year, but that IL it
were not, the treasury department
would stand ready to place its funds
again at the disposal Of business men.
Committees Statement.
The committees statement in part:
I'VE have spent practically from the
4th Of January to the present time in
hearing the views Of business men and
bankers on the problem of dividing the
country into not less than eight or
more than twelve districts and Of To-
eating in each district the main office of
Federal reserve bank. OF the two
questions the division Of the country
into districts is the more important
and difficult. The committee asked
those who appeared before 1t to direct
their attention to these two problems.
"A great many able and impartial
business men and bankers have sub
mitted their best information and opin-
ions, and always in a spirit of great
fairness.
THE committee has held hearings In
eighteen cities and has heard from
every community Of consequence in the
sections Of tho country it has visited.
Confidence in System.
I'm every section Of the country the
committee has found a practically un-
| animous conviction that the currency
bill will bring about most beneficial
changes in business. The committee
was presented with overwhelming evi-
dence Of the enormous economic
strength Of the country and Of the rap
Id progress Of every section. The fact
that the nations banking resources as
whole made enormous advances ev-
cry twelve or fifteen years, approx
mately doubling in each such period,
was made evident; while this Is true Of
the country as a whole, 1t was shown
that certain sections are advancing
with more rapid strides than others,
and that the country Is fundamentally
kceptionally sound and strong eco-
nomically. Facts and figures in every
part Of the country show amazing
growth and strength and disclose
condition Of financial, industrial, COM
mercial and agricultural soundness and
prosperity that leaves no doubt as to
the future.
Flaws in Present System.
The committee was impressed by
the frank admission of bankers that
the present banking system not only
encourages, but actually has created
artificial banking conditions. With
practical unanimity the opinion was
expressed that the new measure will
restore normal conditions with great
resulting benefits; that the present
system not only furnishes no protec-
ton in times Of real stringency, but
also, even in times Of great prosperity,
makes it impossible to meet the condi-
tions, and that there has been present
ed the singular contradiction Of having
bankers thrown into fear Of panic by
the emergence Of wealth. Bankers un-
animously were of the opinion that the
establishment of this reserve system
no longer will make our prosperity q
peril, and that 1t will relieve them Of
apprehension and distress in those con-
ditions and give confidence and stabil-
ity of business generally.
Field Survey Complete.
1.-The committee has finished its sur
vey in the field. It has yet to make
examination Of important documents
and data, and can not render any de-
cision until it has thoroughly examin-
ed this matter.
Already practically all capital rep
resented by the national banks has
come in. A number of state banks
have applied for national charters, and
many have applied for membership in
the Federal reserve system. In every
state the committee has visited 1t has
heard expressions from governors,
banking commissioners and others, to
the effect that where there Is legal dis
| ability against subscription by state
banks, that disability would be remov-
ed, and the further expression that ell
gible state banks very generally would
seek to enter the system.
1.-The committee is gratified with the
results Of its trip"
McAdoo's Statement.
Here Is Secretary McAdoo's state
ment:
In a few instances the question was
asked If the new Federal reserve banks
would be organized in time to take care
of the crop moving contingencies next
fall. 1t is hoped that the system may
be established before that time, but II
it should not be, the resources OF the
United States treasury will again be
placed at the disposal Of and be used
for the protection Of the legitimate
business interests. Treasury resources
are believed to be adequate for the
purpose and if they should not prove
to be- then it should be remembered
that the Aldrich-Vreeland Act has
been extended until June 30, 1915. and
the tax on circulation taken out under
this measure has been reduced to the
point where bankers may resort to 1t
with advantage in case necessity
should arise The financial situation Is,
Sound apd aatisfa ctOry and