The Bridgeport evening farmer., 1917-10-16
MOBILIZE GOLD
OF COUNTRY IS
WILSON'S PLEA
Urges Banks to Join Federal
Reserve and Help
Win War

Washington, Oct. 16 President
the mobilization Of all the nations
gold reserves under the supervision of
the Federal Reserve Board.
In statement made public through
all eligible non-member state banks
and trust companies to Join the Fed
era1 reserve system without further
delay.
At present the board controls the
activities of institutions representing
only one-half Of the country's total
banking resources. There are be-
tween 5000 and 5000 eligible banks
and trust companies, with resources
estimated at from IL to-16 billion
dollars, 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:
sit is manifestly imperative that
there should be complete mobiliza-
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 and
of providing financial machinery ade-
quate for meeting che very great finan-
cial requirements imposed upon our
country by reason of the war.
"a vigorous prosecution and salts
factory termination of the war will
depend in mo 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 be kept supplied
with munitions, fuel, food and supplies
of all kinds.
THE banking problem involved is
one which concerns all banks alike
It's solution does not depend upon the
national banks alone, nor upon the
State banks. The burden and the
privilege. must he shared by every
banking institution in the country,
1.-THE important functions Of the
Federal reserve banks in the sale of
the governments securities in receiv-
ing and transferring the billions of
dollars involved, in supplying credit
facilities and in protecting the re-
serves Of the country have become SO
familiar to all that I am sure it Is
unnecessary to dwell upon or expound
them.
1.-THE extent to which our country
can withstand the financial strains for
which we must be prepared will de-
pend very largely upon the strength
and staying power of the Federal re-
serve banks. The Federal reserve act
Is the only constructive financial leg
islation which we have ever had
which was broad enough to accommo-
date, at the same time banks operat-
ing under powers granted by the gem
eral government and banks whose
charters are granted by the respec-
tive States.
THE State banking institutions for
some reason have until recently
seemed inclined to hold aloof. Con-
gress; a few months ago prescribed
very generous terms for the admis-
sion of the State banks into the Fed
eral reserve system which. have re-
moved the objections heretofore raised
jby state banks when considering mem
bership.
/ 'As the law now stands it leaves
members of State banks and trust
companies practically undisturbed in
the exercise of all the banking pow.
| eEs conferred upon them by the
states.
Many of the largest State bank.
| ana trust companies are now DecOrn.
| ing members, realizing that to win tn,
| war we must conserve all the physical
financial and moral resources of oul
country-that our finances must res
on the firmest possible foundation ant
that they must be adequately ant
completely conserved so as to respont
instantly to every legitimate demand
How can this necessary condition bt
brought about and made permanent,
| effective better than by the concen
tration of the banking strength of ou
country in the Federal reserve sys
| tenn?
MAY not, therefore, urge upo1
4 the officers and directors of all non
| member State banks and trust com
| panies which have the required
amount of capital and surplus t,
make them eligible for membership
to unite with the Federal reserve sys
tenn and thereby contribute thei
share to the consolidated gold re
serves of the Country?