The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-10-20
FEDERAL RESERVE SYSTEM.
MOBILIZATION OF NATIONS GOLD
REssKRvE ORDERED.
PRESIDENT Wilson Calls Upon All Elig-
ibic Nom n-Member Banks and Trust
Companies to Join Federal Reserve
System and DO Their Share Toward
Winning War.

mooihz1tton Oh All the natiOnS gOid
reserves under the supervision OF the
federal reserve board.
In n statement made public through
the board the president called upon
all eligible non-member State banks
and trust companies to join the fed
erai reserve system without further
delay that they may contribute their
share to the consolidated gold re-
serve Of the country and aid more ef-
fectiveiy In "a vigorous prosecution
and successful termination OF the
war"
Scores OF such institutions have
fiocked to the system within the past
three weeks. among them some OF the
largest trust companies OF Now York.
philadelphia and other cities. The
government to the federal reserve
system has lacked only a final impell-
Ing force to assume the proportions
OF a landslide. Within less than
three weeks. resources OF such insti
tutions I'm the system have risen from
$1,000. 600. 900 to more than $4,000.
900. 900.
Liberty loan financing. the result
ant activity I'm the money markets. the
ecest OF the governments huge finan-
ciai transactions upon the bond mar
kets and the stock exchanges Of the
country have made II imperative. In
the view OF the administration. for the
federal reserve board to control not a
major fraction OF the gold reserve OF
the country. but the entire amount.
The recent embargo on gold exports
has made Il highly desirable that this
control be acquired as speedily as
possible.
With the board inactive. daily cor
troll Of the country's huge store OF
gold. at present more than $1,000
100000. watching every avenue
through which II may be lessened.
and vigilant In Its supervision OF the
country's banking activities. officials
believe that the financial position OF
tho country may be rendered as near
~ impregnable as human skill can
make IL.
activities OF institutes representing
only one-half OF tho country's total
banking resources. The latest reports
Of tho comptroller OF the currency
places at several millions above $16,-
100000. 900 the resources of the banks
within the system. Since that report
was issued. however. nearly S1.50O.-
100000 I'm resources have been add
ed through the acquisition OF new
members.
There are. however. between 5000
ard 5000 eligible banks and trust
companies. with resources estimated
MT from $4,000. 900. 900 to s16.0OO,-
100000 whose activities are entirely
beyond the control OF the federal
government. being governed only by
state laws. The president addressed
himself to these institutions. His
statement follows:
Tho White House:
1T is manifestly imperative that
there should be a complete mobiliza-
tion OF the banking reserves OF the
United States. All who are familiar
with financial operations must appre-
ciate the Importance OF developing to
the maximum our banking power and
OF providing financial machinery ade-
auate for meeting the very great
financial requirements imposed upon
our country by reason OF the war
"A vigorus prosecution and salts
factory 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 gov
ernments associated with I'm tn,
war. which must be kept supplied
with munitions. fuel. food and sup
piles OF all kinds.
The banking problem involved is
one which concerns all banks alike
Its solution does not depend upon the
national banks alone nor upon the
State banks. The burden and tho
privilege must be shared by every
banking institution In the country.
The important functions OF the fed
erai reserve banks In the sale OF the
governm ent's securities. i'm receiving
and transferring the billions Of do.-
lars involved. In supplying credit ia
cillties and In protecting the reserve
OF the country, have become SO ia
miliar TO all that am sure II Is un.
necessary To dwell upon or expound