Bisbee daily review., 1917-12-06

"It may also become necessary" he added. ito concert some constructive measures through which essential credits may be provided for those in- dustries and enterprises in the coun- try essential to the efficient and sue cessful conduct of the war. The sub feet requires the best thought and study. It is receiving the most earn est consideration.
 Nations Resources Abundant.
 "The courage and resources of the nation are so abundant that Americas success in the war is beyond question if they are properly organized and in- telligently used. The economic and financial condition of the country was never so strong and Americas spirit was never more aroused to the i'm portance and necessity of going for ward, resolutely and regardless of sacrifice, to the accomplishment of the great task to which God has call ed us'
 The federal reserve system received Secretary McAdoo's enthusiastic prais ing for its part in the war financing system. He pleaded for further strengthening of the reserve system ! by the entrance of state banks and trust companies.
 Finances Should Be Strengthened. Intelligent men all over the coun- | try" he said, "are beginning to realize that the financial power of the United ! States should be strengthened to the utmost limit if we are to meet sue cessfully the tremendous strain upon | our resources occasioned by our own 1 part in the war and by the credits which it is essential that We should extend to the foreign governments CO., operating with us in the war and if we are to be equal to the demands, in large measure, at least of world lead ershio which will inevitably be thrust upon us as a result of this war Financial strength can come alone 1 from a consolidation of the financial powers of the country under one hon. | egeneous system. It cannot be had un- | der the present arrangement, involv- | ing IS it does 49 separate banking sys- tens or banking controls in the United States. In the federal system we have the one cohesive and powerful fi- nancial organization in the country. In addition to the federal system we have 4S systems, authorized and ad. ministered under the laws of each of the states of the union. This is a serious element of weakness and will be proven so when the test of a great responsibility and need comes. We must be prepared for a larger measure of international demand upon our re sources in the future than ever before in the past Self-interest alone should compel every eligible state bank ir the country to take membership in the federal reserve system. But in ad dition to that, in this grave time oi national peril, patriotism should com bine with self-interest to make then take that course.
 State Banks Can Help.
 ''It is my earnest hope that the state banks of the U. s. will see this question in its proper light. They have been joining the federal reserve sys tenn recently in greater numbers thar ever before. but progress should now be even more rapid. The federal re serve law is now so liberal to stat, banks that they get nothing but ad i vantage by joining the system, whil, they are bound to suffer serious disad vantages, especially in time of test anG trial if they remain outside"
 The secretary disclosed that neutra countries have entered cordially upoI negotiations looking to stabiliZing fore ign exchange rates without shipping from the United States the gold whict has been accumulated here in the las few years. At the time he prepared his report, none of the negotiations had been completed.
 Upon the governments system O forbidding gold exports except $updel license by the federal reserve board Secretary McAdoo explained, "the ex | portation of gold has not been permit ted except in those cases in which un usual circumstances have seemed tC justify the issue of licenses for its export. The department has not, how ever, rested content with a negative policy of prohibition, but has initiated series of negotiations having fol purpose the substitution of arrange ments which, while holding the neces sity for large exports of gold, would yet stabilize the exchange between the United States and neutral countries
 Hold Third of Worlds Gold.
 Although the nature of these nego tiations were not disclosed, it is under stood they relate to investments in the United States by neutral capital and to restriction of imports from neu. trals. The secretary explained that the United States now holds more than one-third of the worlds gold monetary stock.
 Praising the policies of the farm loan system, Secretary McAdoo said some method must be devised for dis. posing of farm loan bonds as soon as they are isued in order to avoid suspending the flaming operations of the banks. He recommended also that the limit of s10,000 imposed by law upon loans to any one individual should be increased to $25.00O."
 Will Increase Loan Rate. Up to one week ago credits extend ed to allied goverpments amounted to $S,993. 100000. That latest loans have been at IA per cent. but Secretary McAdoo explained that this rate in turn will be further increased in case there should be higher rates of inter- est paid by the United tSates during IL.