The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-10-16
IN UNITY
Wilson Wants All Banks Under
Federal Reserve System.
This Necessary To Mobilize
COuntry's Resources.

Washington, Oct. 16.-President
Wilson believes that every bank and
trust company, national, state or pri-
vate, should be a member of the fed
eral reserve system. Only thus, he
says, will it be possible properly to mo-
billie the country's banking resources
for the great burdens which the war
must impose. Thus, he says, bankers
may best fulfill their patriotic obliga-
lions.
The president has embodied these
ideas in a signed statement which the
federal reserve board is sending to eV-
cry banker in the United States.
1t is in part as follows:
1t is manifestly imperative that
there should be complete moblllza-
ton 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 ana
of providing financial machinery ade-
quate for meeting the very great
financial requirements imposed upon
our country by reason of the war "A
vigorous prosecution and satisfactory
termination of the war will depend IN
no small degree upon the ability OF the
government not only to finance ltSel1r
but also to aid the governments as
sociated with it in the war, which
must be kept supplied with munitions,
fuel, food and supplies of all kinds
The banking problem involved is one
which concerns all banks alike. lts
solution does not depend upon the ma
tionaI banks alone, nor upon the state
banks The burden and the privilege
must be shared by every banking in
stitution in the country. The import
ant functions of the federal 4 reserve
banks in the sale of the government
securities in receiving and trans err
ring the billions of dollars involved, III
20 Ill
tecting the reserves of the country
have become so familiar to all that
am sure it is unnecessary to dWell
upon or expound them
eThe extent to which our country
can Withstand the financial strain Tor
which we must be prepared will de-
mend very largely upon the strength
and staying power of the federal re-
serve hanks. The federal reserve ACT
| is the only constructive financial leg
| islation which we have ever mao
| which was broad enough to accom-
modate at the same time banks opef-
ating under powers granted by the
| general government and banks whose
| charters are granted by the respective
states The unification of our bank
| ing system ana the complete mobiliza-
ton of reserves are among the 1uhoa-
mental principles of the act
! THE state banking institutions fol
some reason have until recently seem
ed inclined to hold aloof, Congress
few months ago prescribed very gen
| erous terms for the admission OF the
state banks into the federal reserve
| system which have removed the OBJ
/ iections heretofore raised by state
! banks when considering membership
AS the law now stands it leaves mem
Der state banks and trust companle:
| practically undisturbed in the exercls'
! of all the banking powers conferred
upon them by the states
1.-The law provides also in definlt'
terms the conditions upon which an!
| state bank or trust company ma!
withdraw from the system. Many o
the largest state banks and trust com
panies are now becoming members
realizing that to win the war we mus
conserve ali of the physical, financ1a
and moral resources of our country
that our finances must rest on the
firmest possible foundation, and tina
they must be adequately and com
pIetely conserved so as to respond
Instantly to every legitimate demand
How can this necessary condition b.
brought about and be made perma
nently effective better than by tn
concentration of the banking strength
of our country in the federal reserv
tcxrctoT11 ~