The Detroit times., 1917-06-20
BANKERS
MUST STAND
BY NATION
N. w p. O. HARDING
Heavy Burden Rests
On Them, Says Fed
eral Reserve Official
ASSOCIATION IN
WARTIME FEAST
Simple Menu Presents
Marked Contrast To
Past Banquets

In an address on Business dur
ing the war" at the annual dinner
OF the Michigan Bankers associs-
ton in the Detroit Athletic club
Tuesday night. ". P. c. Harding,
OF Washington. federal reserve
board governor, urged the bankers
OF the country to devote their en-
crgy and resources to their coun-
try IN her hour OF peril
"war Is the chief industry Of the
United States at present" declared
the speaker, land the chief business
OF you bankers is 10 provide the
financial sinews TO bring this war
to successful conclusion"
Altho his address was filed with
optimism for continued business
prosperity thruout the period OF the
war. Mr.. Harding sounded warn
Ing note when he declared that
Prussianism must be crushed for.
ever lest this country be invaded by
the kaiser's hordes.
This war will last until the prin'
ciples we are lighting for are settled
and settled according to American
ideals" he said The vanguard OF
the United States troops is now in
France and the American flag has
been sent 10 France TO stay there
until the kaiser sees its stars and
feels its stripes
Mr.. Harding continued.
The bankers must help investors
pay for the government war bonds
for which they have subscribed. To
fulhl this obligation ali banking re-
sources must be mobilized Herein
lies the great opportunity Of the fed
eral reserve bank system.
The United states must spend So
600 1000. Geo a year during the remain
der Of tho war and must finance an
expenditure Of $4,000. 900 900 year
by each 81 the Allies. but eq per cent
OF this money Will stay in this coun-
try.
The work Of the federal reserve
system viii be the maintenance of a
proper balance OF credit between the
various sections Of the country. To
handle the situation the reserve
board has authorized reserve banks
10 re-discount eligible paper which
y Is Ehort-time paper based on com
Tnerciai transactions az opposed 20
accommodation paper. al a rate Of
three per cent
Reserve banks also arc ready 70 re-
discount any short-tiune note secured
by a government bond.
All available gold holdings should
be turned into the reserve banks.
which VIII give in exchange re-
serve notes In thiz way all banks.
whcther members 81 tho federal re-
serve system Or not, VIII he doing
"A patriotic duty
The speaker urged state banks TO
join the reserve system. il only from
patriotic motives He declares that
a branch Of the federal reserve bank
in Detroit would be Of great bene-
ct 10 the banks OF this city.
Il want to congratulate the bank
.crs Of this country, continued Mr.
Harding "for their uRselish patriot
ism and disregard Of personal inter.
ests during this critical period in
their countrys history
"Business must continue prosper
Gus in this country There must BE-
no relaxation in productive enter.
prises Of the United States There
must be no reckless extravaganza or
waste We have got 10 learn 10
practice cconomies We must con.
serve our gold supply instead of
sending it abroad for Injuries
Preceding Mr Harding's address.
James Schermerhorn spoke His
topic was a condensed report Of
the condition of the state Of Michi
gan"
After giyinE the resources and ua