Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-10-29
All Payments Must Be Made
in Gold or Other Lawful
Money in Transferring Funds
to Regional Institutions,
YELLOW METAL is
IN GREAT DEMAND
Funds Should Be Taken From
Vaults Where Possible In
stead of Drawing Upon De-
pOSits Of Correspondents,

tsy ~oEnlHe JOURNAL SPECIAL lrAsto ~isri
Washington. oct 2S-The federal /
reserve board tonight notified all
banks that are members of the new
system that gold on lawful money |
must be used in making the transfer
of reserve deposits from the present I
banks to the federal reserve banks +
This step is designed to fill the vaults
Of the twelve reserve banks with mon
ey at once and win permit the ready
issue of federal reserve notes 10 mem-
ber banks.
The board announced that this or
der will apply to subscriptions 10 be
made to the capital stock OF reserve
banks by the member institutions, the
first installment of which is due No
yember ?. The transfer OF reserves
will begin after the secretary of the
treasury makes formal notification Of
the opening of the twelve banks No
vember 10.
Appeals 10 Member Banks.
THE federal reserve board appeals
to the patriotic spirit OF all member
banks, large and small said the
board in its announcement. TO do
their utmost in facilitating the diff
cult work now thrown upon the Off
GERS of the newly created reserve
banks and TO do all in their power TO
secure for the new system the greatest
possible success from the beginning"
No compilation as yet has been
given by the department showing the
exact amount of money 10 be trans
ferred
The boards announcement in part
Date for Opening Banks.
"rhe secretary of the treasury hav-
ing advised the federal reserve board
that formal notice of the establish
ment of the several federal reserve
banks will be given TO all member
hat arrangements be made now for
the transfer of required reserves BY
the member banks to their respective
federal reserve banks on that date. II is
the desire of the board to arrange for
the actual transfer of the first INSTALL
ment in such manner as to create
he least possible disturbance TO BUSH |
mess conditions in any city or sec (
iion.
Urges Great Caution
1t is Of course, clear that If the
banks in non-reserve cities undertake
10 make the necessary deposits Of re-
serves with their federal reserve bank /
by rendtting checks or drafts on
banks in reserve cities (Which checks |
or drafts can be received by the fed (
aral reserve bank for collection only) 4
there may result unnecessarily q 7
heavy withdrawal of funds from the
banks in reserve cities In the same /
If banks in reserve cities
make remttances of checks or drafts /
IN banks in central reserve cities, an I
burden may be placed T
upon the latter.
"fhe deposits Of reserves with the T
federal reserve banks must be made /
hat the withdrawal of funds from the I
vaults Of member banks may be as
nearly uniform as possible, and so
as to relieve any particular (
section Of unnecessary burden, the /
federal reserve board urges all banks Z
10 ship from their own vaults gold or
lawful money. The federal reserve I
banks have been authorized to as
sumo and pay the express charges in (
volyed in making such shipments.
The foregoing suggestions also APP |
ply to payments on account of the [
first nstallment Of capital stock due |
..
Gold In Much Demand.
In view Of the advantage to be de- T
rived from the deposits Of gold, which (
may be used as reserve for federal re- I
serve notes 1t is strongly urged by
The board that deposits of reserves in +
he federal reserve banks be made so /
far as practicable In gold or gold cer- 1
ificates. {
Que notice of the establishment OF
reserve banks on November IL Will be 7
sent each member bank by the secre- /
AIRY of the treasury and no transfer OF :
reserves can be made until this is
done.
Member banks of large resources +
will facilitate the physical work of i
counting reserve money If they will I
send gold certificates in as large de- +
nominations as possible OF clearing +
house orders calling for gold certifi- /
'ates OF gold already counted by the T
clearing houses"
Try 10 Save Naval Boat.
Norfolk, Va, Oct. 2S. - Powerful /