The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1915-01-30

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funds may always exercise a benefi-
cial influence.
The vast and complex structure
of modern banking and credit sys-
TENS is one of extreme delicacy of
balance and adjustments, and it
must never be overlooked that it is
highly sensitive to all manner of dis
turbances. as recent events have
painfully demonstrated. The bank
ing 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 in critical
IL system commands, the strength
of is reserves, and it's power to
bring them into action promptly and
cffec lively if needed.
I'm dealing with new districts and
entirely changed banking methods,
time and experience alone car supply
the data necessary for charting the
course to be pursued. This consider
alton, if nothing else, would suggest
the greatest patience and prudence
even if the European horizon were
less clouded than it is today. None
the less. the board realizes that
where extraordinary conditions war
rant extraordinary measures, it is
he foremost duty of the board and
the banks to act promptly and bold
ly."
The board refers briefly to open
market operations of the reserve
banks and announces that regula-
ton. governing the purchase or &C
ceptance will 500 be made public.
With h issue of these regulations,
the report says, there will be ample
employment for all funds of these
banks, which experience demon
strates they maye safely and prop
erly invest at times when such
funds are not absorbed in respond
ing to the demands of commerce.,
industry and agriculture.
In reference to the collection and
clearing of checks, the board re-
ports:
1T was the general opinion of the
directors of the several federal re-
serve banks. expressed at their con-
ference held just before the opening
of these banks, that transit and clear
ing operations should be restricted to
easily manageable proportions in the
beginning. Since the opening a few
of the reserve banks, acting in &C
cordance with authority granted
them by the board, have in greater
or less degree widened the scope of
their clearing activities. At this
time the whole matter is still to be
regarded as in a condition of devel-
opment, but with sufficient expert
mentation going on to materially as
sist the board in reaching sound con-
clusions."
The board points out that another
pressing problem, that of admission
of state banks and trust companies
to the system, is receiving consider
a ion and that at least a tentative
solution of the problems at issue
may be arrived at in the near flu
ture."
The report shows hat SO state
banks and trust companies with ag-
gregate capital and surplus of So
l51,306 have been converted into
national banks and entered the sys-
TEN since the passage of the act. Nine
state banks and four trust compa-
MES with capital and surplus Of
$~17.SS4,0OO have been admitted I'M
der their own charters, with the un-
derstanding that they will accept reg
ulatons for the conduct of business
made by the board. Applications
from 81 other institutions which
prefer to wait for the issuance of
regulations governing their admis-
sion are pending before the board.
The report reviews the steps
the banks in operation November
16. declaring that after getting
opinions from a great variety of
sources it found such a diversity
that it was guided by it's own esti-
mate of the proper moment.
Events have since shown" it
says. that the opening of the insti-
tutions was wisely timed to syn
chroniZe with the restoration of ac-
tivity in our export trade. When
the financial anxiety which prevail
ed during the latter part of the past
summer and the difficulty which was
then experienced in getting banking
accommodations at reasonable rates,
even upon security of undOubted
solidity. are recalled, the substantial
improvement which has taken place
since becomes evident, and is a re-
markable tribute not only to the re-
operative power of American COM
merce and industry, but also and
largely to the beneficial operation Of