Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-01-28


all times be steadying influence,
| leading when and where leadership is
requisite. but never allowing itself to
become an instrument for the promo
t'on Of the selfish Interests Of any pri-
vate or sectional group, be their aims
and methods open or disguised
Time and experience will show
what the seasonal variations in tho
credit demands and facilities In each
Of the reserve banks of the several
districts will be and when and to what
extent Il reserve bank may, without
| violating its special function as a
guardian of banking reserves, engage
In banking and credit operations.
The vast and complex structure of
modern banking and credit systems Is
one Of extreme delicacy Of balance and
adjustments and II must never be
overlooked that il Is highly sensitive
to all manner of disturbances as re-
cent events have painfully demon
strated The banking systems of the
larger nations are closely related to
one another, and financial distress or
collapse at one point quickly permits
shock to all others Safety for US I'm
critical times will depend on the con-
tidence our system commands, the
strength Of its reserves, and its power
to bring them into action promptly
and effectively If needed.
In dealing with new districts and
entirely changed banking methods,
time and experience alone can supply
the data necessary for. charting the
course to be pursued. This cOusld-
Grafton, if nothing else, would sug-
gcst the greatest patience and pru-
dence even If the European horizon
wcro less clouded than 1t is today.
None the less, the board realizes that
where extraordinary conditions war
rant extraordinary measures, It is the
foremost duty of the board and the
banks to act promptly and boldly
More Regulation.
The board refers briefly to open
market operations of the reserve
banks and announces that regulations
governing the purchase OF acceptanceS
will soon be made public With the
| issue of these regulations, the report
says, there will be ample employment
for all funds of these banks, which
experience demonstrates they may
safely and properly Invest at times
when such funds are not absorbed In
responding to the demands of COM
merce, industry and agriculture.
The board points out that another
pressing problem, that of admission
of state banks and trust companies
to the system, is receiving considera-
tiOn and that at least a tentative
solution of the problems at issue may
| be arrived at in the near future"
The report shows that 8 state banks
and trust companies with aggregate
| capital and surplus Of $9,15l ,306 have
been converted into national banks
and entered the system since the
passage of the act, Nine state banks
and four trust companies with capital
and surplus of $17,SS4,O00 have been
admitted under their own charters,
with the understanding that they will
accept regulations for the conduct of
business made by the board. Applica-
tiuns from II other such institutions
which prefer to walt for the issuance
of regulations governing their admis-
sion are pending before the board.
The report reviews the steps which
led up to the decision to put the banks
in operation November 16, declaring
that after getting opinions from a
great variety of sources, 1t found such
q diversity that it was guided by its
Cwn estimate Of the proper moment.
Events have since shown" 1t says,
that the opening Of the institutions
was wisely timed to synchronize with
the restoration of activity in our ex-
port trade. When the financial anX-
iety which prevailed during the latter
part of the past summer and the diff
ticrlty which was then experienced in
getting banking accommodations at
lp1SOuab blp rates even uDOn security
If undoubtcd solidity, are recalled, the
substantial Improvement which has
taken place since becomes evident,
and is a remarkable tribute not only
to the recuperatiye power Of Amer
lCan commerce and industry but also
and largely to the beneficial operation
of the new banking system"