The Washington herald., 1914-08-15
COMMERCE AND FINANCE

into effect the provisions Of the new act
makes an appropriate occasion for n
summary OF the activities OF the organi-
cation committee.
President Wilson'S approval OF the act
occurred on December % 1913. This au-
tomatically put into control and defined
the duties Of the reserve bank organiza-
ton committee, which consisted OF the
Secretary OF the Treasury, the Secretary
Of Agriculture, and the Comptroller Of
the Currency. This committee was re-
quired by the banking law TO designate
not less than eight or more than twelve
cities to be known as Federal reserve
cities, and to divide continental United
States, excluding Alaska, into districts
Their decision was not subject to review.
except by the Federal Reserve Board
when Organized. Consequently, among
the first things on the program for the
new Federal Reserve Board will be the
consideration OF appeals for changes In
the location OF regional bank centers
and the boundaries of districts about
which there may be some hope Of read
justment.
The districting Of the country into re-
gional areas was one Of the most I'M
portant pieces Of work accomplished by
this committee. Before the end Of the
first four months, after an extended tour
OF the country, during which hearings
were held at nearly a score Of leading
financial centers. the committee an
nounced its conclusion on APRIL It
partitioned the country Into twelve dis
tricts, and designating Boston, New York,
Philadelphia, Cleveland, Richmond, At
lanta, Chicago. st, Louis. Kansas City,
Minneapolis. Dallas and San. Francisco
as reserve centers. These elections were
made after numerous conferences with
Representatives Of business centers and
sections, including thirty-seven cities
which asked to be designated as Federal
reserve points.
On most OF these representations care
fully prepared briefs were submitted,
containing description. q, statistics, and
analyses OF the merits of the respective
localities for reserve service The CON |
sideration of this mass of testimony was |
by no means the least of the duties which |
fell to the committee In its effort to |
carry out the instructions OF Congress
Practically every one Of the 800 banks |
which accepted membership under the |
reserve system has in this interval OF or
been the source OF . large vari- |
ETY. Of inquiries. The duty OF giving mi
tial Interpretation to the law thus fell /
upon the organizers Many questions, Of
practical application have been disposed
Of and thus was cleared the way toward /
a more uniform understanding Of what
the act required of the Individual bank.
All this has been done not only with
little or no friction, but with the result
that the banking membership is far more
3 unit in appreciation Of the act than at |
any time since 1t became q law.
We. OF course, must pay our debts, but
Is one OF the most important interna-
sfnnaI ho- -,
not necessarily pay them in gold: In or
iinary years We draw sixty or ninety
lay bills in London, for instance, raising
money there which may be used by
American tourists, in payment OF inter
st and dividends on American securi-
les, in payment for imports and 50 on.
But we do not meet those bills by ship
nents of gold. We balance them with
otton and grain bills and bills for our
ther exports So now. IL possible, we {
must keep our gold supply, and meet
oreign Indebtedness with products We
ave for sale. Suppose, for instance, we
hould ship large amounts Of gold to
ottawa for the credit Of the Bank of
England. We would derive no further !
'enefit from the gold. While payment In
xports would distribute money through
ut the country and produce wide benefit.
The monthly cotton report Of the Cen :
US Bureau yesterday reported cotton,
xclusive Of linters. consumed during July
segregated 44s.2ss running bales, COM
AIRED with 1921 bales in July. 1871
otton held in manufacturing establish
lents July 81 totaled s04,f4 bales, {
gainst s57,5s1 bales in 1913, and I24,2e
ales in independent warehouses, against
lbs bales in 1919 Imports reported
Tere S7I3 bales, against 4.l95 bales in
'13 and exports were 136.1T3 bales, 4
gainst 1910 bales in 1919 Cotton spin
les reported active during July were c
l,67es55, against 3o,o22,e54 in 1s1a
at is though the continent OF Europe
ad sunk in the seas" said the head Of q
bank yesterday. I'VE can neither coll d
ct our foreign bills nor pay them. s
financially we were never in better y
lape, but II we had all the money In the
orld we could do nothing. 1t Is a terri
lie thing to see the wheels of a great I,
enterprise that has been built !
p and running for years stop overnight =