Arizona republican., 1914-10-29
Members of New System Notified That Subscrip- tions Prepara tory to Opening Nov. 16 Must Be i'll Actual Cash
SEEKS TO AVOID
 ANY DISTURBANCE
Transfer of Funds by Cheek or Draft Might Cause Un- necessary Strain on Cen tral Banks in Reserve Cities
ASSOCIATED PRESS DIsPATcHl


 WASHINGTON, Oct. 2S.-The federal | reserve board notified all member banks of the new system that trans 1 fers Of deposits to the federal reserve l banks preparatory to opening on No vember l6 must be in actual money, preferably gold, in order to fill the vaults of the twelve reserve banks with actual cash and avoid undue strain on certain centers.
 Subscriptions to reserve bank stock must also be made in cash. The board has appealed to the bankers patriotism
 to make the new currency system and the reserve banks successful from the start
 The board announced also that this order will apply to subscriptions to be
 made to the capital stock of reserve
 banks by member institutions. the first installment of which is due November
 A. The transfer of reserves will be- gin after the secretary of the treasury makes formal notification of the open ing of the twelve banks November 16. No compilation has yet been given
 by the department showing the exact amount of money to be transferred. The boards announcement in part
 follows:
 The secretary of the treasury, hay ! ing advised the federal reserve board that formal notice of the establishment
 Of the several federal reserve banks be given all members November Is, it is | necessary that arrangements be made
 now for the transfer of required re- serves by member banks to their re- spective federal reserve banks on that date. It is the desire of the board to arrange for the actual physical trans fer of the first installment in such q manner as to create the least possible disturbance to the business conditions
 of any city or section
 Tt is of course, clear that if banks
 in non-reserve cities undertake to make the necessary deposit of reserves with their federal reserve bank by transmitting checks and drafts on banks in reserve cities, on which checks and drafts can be received by federal reserve banks for collection only, there may result unnecessarily heavy withdrawal of funds from banks in reserve cities In the same manner ii banks in reserve cities make remit tances by checks and drafts on banks : in the central reserve cities, an unnec- i essary burden may be placed upon the i latter.
 The deposit of reserves With the
 federal reserve banks must be made in
 gold or lawful money, and in order that 1 the withdrawal of funds from the vaults of member banks may be as
 nearly uniform as possible and so dis | tributed as to relieve any particular 1 section or sections unnecessary bur
 den. the federal reserve board urges all banks to ship from their own vaults gold or lawful money. The federal re- 1 serve banks have been authorized to
 assume and pay the express charges l involved in making such shipments l The foregoing suggestions also apply to payments on account of the i first installment of capital stock due 1 November ,.
 1 In view of the advantage to be de-
 rived from deposits of gold, which may be used as reserve for federal reserve
 notes. it is strongly urged by the board ! that deposits of reserves in the federal
 reserve banks he made, so far as prac- ticable in gold or gold certificates.
 Due notice of the establishment of the federal reserve banks November i 16 will be sent each member bank by