Omaha daily bee., 1914-02-20
PROSPERITY is EVERYWHERE
MeAdoo and Houston Back in apCi.
tai After Long Trip.
CONFIDENCE IN MONEY BILL
Country shown by Facts and FiE-
ure- 90 ne Exceptionally sound
Rnd strong, Secretaries
Declare.


WASHINGTON. Feb. ls.-The federadl
reserve bank organization committee.
back In Washington after five weeks
trip through the country. in a statement
issued tonight, announced that its selec-
tion OF federal reserve cities and definl.
tlon OF reserve districts would not 90
made until careful consideration had
been given to the information accumu-
lated on the trip. The statement said
the committe. Secretaries McAdoo and
Houston. found the country prosperous
and learned that bankers and business
men are greatly interested in the new
banking system and confident OF its sue
cess.
In supplemental statement Mr.. Me-
Adoo asserted he hoped the new system
would be established In time to take care
Of erop-movlng contingencies next year,
but that II II were not the Treasury de-
partment would stand ready to place It's
funds again at the disposal OF the busl-
ness men.
Evidence of Economgc strength.
The committees statement. In part,
said "ln every section OF the country
the committee found a practically unan-
imous conviction among bankers and
business men that the currency bill will
bring about most beneficial changes IN
the business OF the country. The com.
mlttee was presented everywhere with
Overwhelming evidence OF the enormous
economic strength OF the country and of
the rapid progress OF every section. The
fact that the nations banking resources
as whole made enormous advances
every twelve or fifteen years. approxi-
mately doubling in each such period, was
made evident. While this Is true OF the
country as whole, II was shown that
certain sections are advancing with more
rapid strides than others, and that the
country Is fundamentally exceptionally
sound and strong economically. The
facts and figures submitted TO the COM
mittee in every part OF the country show
condition OF financial industrial. COM
merclal and agricultural soundness and
prosperity that leaves no doubts as 70 the
future.
Impressed by Admission.
The committee was impressed by the
frank admission OF bankers throughout
the country that the present banking sys-
tenn not only encourages but actually has
created striking artificial conditions Of
banking with practical unanimity, the
opinion was expressed that the new
measure viii restore normal conditions
with great resulting benefits that the
present system not only furnishes no pro-
tection in times of real stringency, but
also, even in times OF great prosperity,
especially when there are bounteous
crops, makes II impossible to meet the
conditions hat Aaa 49,
sented the singular contradiction OF
providing bankers thrown into fear Of
panic by the emergency of wealth. The
bankers were unanimously of the opinion
that the establishment of this reserve
system will no longer mako our prosper
ty peril and that II will relieve them
OF apprehension and distress in those cir
oumstances and give confidence and sta
bility to business generally.
| Already practically all the capita
represented by the national banks hs,
come in. number OF state banks hav,
applied for national charters and man,
have applied for membership in the fed
erai reserve system.
In every state In the union which th,
committee has visited It has heard ex
presslons from governors. banking com
missioners and others 10 the effect tina
where there Is any legal disabilIt!
against subscription by state banks. tina
disability would be removed and the fur
ther expression. that state banks whic
were eligible would very generally see
to enter the system"
MeAdoO's Statement.
Here Is Secretary McAdoo's statement
'In a few instances tho question wa
asked II the new federal reserve bank
would be organized in time to take car
OF the crop moving contingency mex
fall. II Is hoped that the system ma
be established before that time, but II
should not be the resources OF th
United States treasury will be place
again at the disposal Of and be used fc
the protection OF the legitimate bushes
interests OF the country. The treasur
resources are believed TO be adeuuat
for the purpose, but IL they should nc
prove 10 be, then II should be remen
bered that the Aldrich- -Vreeland act ha
been extended until June 20, 1916, an
the tax upon circulation taken out unds
this measure has been reduced to II
point where bankers may resort TO
with advantage II necessity shoul
arise. The financial situation 10, ther,
fore sound and satisfactory and theI
il every reason why business should pr,
ceed normally and with confidence an