The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-09-03
New York City, Aug. 2s, 1915.

Conflicting statements emanate from
our Imperial Treasury Department.
last week the Comptroller of the
Currency paid very glowing tribute
TO the banking institutions and the
new banking system, outlining enthus-
iastically their superior facilities for
graphing with any financial problem
no matter how vast or how intricate.
"The National banks of this country
and the twelve Federal banks says
Comptroller Williams, shave at this
time an unemployed loaning capacity
sufficient to enable them, if need be,
to carry for our own people at mar
ket value the entire cotton crop, and
half, if not the whole, of the wheat
and tobacco crop, which it is not, of
course, conceivable that they will be
asked to do, and also finance, until the
purchasers can pay us in gold or its
equivalent, a thousand million dollars
or so of exports of foodstuffs or man
ufactured products to be shipped to
the rest of the world The total re-
serve of the National banks now ex-
ceeds by $319,0O0000 the greatest re-
serve ever held by the National banks
at any time prior to the passage of the
Federal Reserve Act. The Federal
Reserve banks in the twelve reserve
centers have total cash resources of
1875. 100000; and while these banks
have discounted bills and acceptances
to the amount of about $40,000,O00
there is sufficient gold in the reserve
banks to allow for further loaning
capacity of more than $3.50, 100000 ad-
ditional, provided they utilize their
70 he
To say nothing of the State banking
organizations.
The Secretary of the Treasury, with
much blowing of the trumpet, announ-
ces that he has decided to deposit $780,
100000 in the Federal Reserve banks
of the three Federal districts "for the
purpose of enabling those banks to
rediscount loans on cotton secured by
warehouse receipts"
If the banks are as strong and as
reliable as the Comptroller states
they are, it is difficult to understand
the necessity of deposit of govern
ment money for the purpose indicated
by the Secretary of the Treasury.
The new Federal Reserve System was
organized to cover just such contin-
gency as seems apparent at the pres
ent time, and it has the resources and
the organization to meet the problem
successfully.
So far as the deposit of government
funds in the reserve banks is con-
cerned, this is right and proper, and
was so intended by the Congress that
approved the Federal Reserve Act.
But any suggestion that the banking
associations are unable to cope with
the situation is an unfair reflection,
not only upon the bankers of the
United States, but upon the Reserve
system as we'll. 1t will be recalled
that at about this time last year the
Secretary's paternalistic concern for
the welfare of the cotton states was
found to be equally unnecessary. The
cotton situation was admirably hand
led by skilfull and patriotic Southern
bankers, who stood ready to devote
their energies and their resources for
the relief of their needy brethren,
and who are best qualified to choose
and apply the proper remedy.
Cotton Declared contraband.
For several weeks the cotton trade
has anticipated the action of Great
Britain in declaring cotton contra
band of war, and so, when this de-
cision was announced, it had no per-
ceptible effect on the cotton market.
The possible consequence of this