The sun., 1917-10-16
MOBILIZE GOLD
0FCOUNTRYIS
WILSON PLEA
Urges Banks to Join Fed.
eral Reserve and Help
Win War.
CALLS 1T PATRIOTIC DUTY
Reminds Officers of 5000
n-Member Institutions Of
"Solemn Obligation"

WASHINGTON, Oct i5.--President Will
son tonight sounded call for the mob
!iization OF all the nations gold reserves
! under the supervision Of the Federal Re-
! serve Board
Z In statement made public through
/ the board the President called upon all
! eligible non-member state banks and
trust companies TO Join the Federal re-.
serve system without further delay. His
statemen; follows:
| 1T is manifestly imperative that there
should be complete mobilization OF the
! banking reserves OF the United StAtea
All who are familiar with financial oper.
atoms must appreciate the Importance OF
developing to the maximum our banking
, power and Of providing financial ma
chinery adequate for meeting the very
great financial requirements imposed
upon our country by reason OF the war
| "A vigorous prosecution and satisfac-
tory termination of the war will depend
in no small degree upon the ability Of
the Government not only to finance
itself but also to aid the Governments
associated with It in the war which
must he kept supplied with munitions,
fuel, food and supplies Of all kinds.
All Banks Involved in War.
THE banking problem involved Is one
which concerns all banks alike. Its
solution does not depend upon the ma
tional banks alone. nor upon the State
banks. The burden and the privilege
must be shared by every banking insti-
tuition in the country.
THE important functions OF the Fed
eral reserve banks In the sale OF the
Government securities. In receiving
and transferring the billions OF dollars
involved. in supplying credit facilities
and In protecting the reserves of the
country have become so familiar to all
that am sure It is unnecessary to dwell
upon or expound them.
The extent TO which our country can
Withstand the financial strains for which
We must be prepared will depend very
largely upon the etrength and staying
power Of the Federal reserve banks.
The Federal reserve act Is tho only con-
structive financial legislation which we
have ever had which was broad enough
TO accommodate at the same time banks
operating under powers granted by the
general Government and banks whose
charters are granted by the respective
States.
The State banking institutions for
Inclined TO hold aloof. Congress a few
months ago prescribed very generous
terms for the admission OF the State
banks into the Federal reserve system
which have removed the objections here.
tofore raised by State banks when con-
sidering membership
Special Powers Cndtsturbed.
"As the law now stands II leaves mem.
Der State banks and trust companies
practically undisturbed in the exercise
OF all the banking powers conferred upor
them by the States.
MANY OF the largest state banks and
trust companies are now becoming mem
bers. realizing that to win the war We
must conserve all the physical. financia
and moral resources Of our country
that our finances must rest or thu
frrnest possible foundation and that they
must be adequately and completely con
served so as to respond instantly tc
every legitimate demand How can th,.
necessary condition be brought abou
and made permanently effective better
| than by the concentration OF the bank
ing strength Of our country In the Fed
eral reserve SYSTEM
MAY not. therefore. urge upon IN,
officers and directors Of all non-membel
state banks and trust companies which
have the required amount OF capital ant
; surplus 10 make them eligible FOR mem
bersh!p to unite with the Federal re
serve system now and thereby contribut,
their share TO the consolidated gold re
, serves Of the country?
Distinct Evidence OF PatPiotism.
"I feel sure that as member bank
they will aid to a greater degree than Il
poSsihlp herwiac In prOmOt inY fhA n
tional welfare and that at the same tim,
! tages offered by the Federal reserve sys
tenn they will best serve their own In
terest and the interest Of their Gus
! toners.
81 believe that cooperation on the par
! of the banks is patriotic duty at THU
time and that membership In the Fed
eral reserve system Is a distinct and sig
nihcant evidence Of patriotism.
There are probably eight or mini
thousand State banks and trust com
pan!es eligible for membership whicl
, These Institutions have It In their powc
to add enormously TO the resources o
! the Federal reserve banks. thereb,
broadening and strengthening tn
, foundation upon which our whole hnan
cla stru ture must rest.
I, Permit me to urge that every banl
officer and bank director owes q solemn
.. obligation to the country which an
sure they wish to discharge. ! therefor
wish again to impress upon them m
. solemn conviction that they can be-,
Q sbilities through membership in tn
Federal reserve system"
a rpunnAv NEAp AYYv