Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-11-25

banks and general banking relations
ships growing on, of the orcrat;o?
The Federal Reserve Board itself
besides cooperating closely with the
authorities of the Treasury Depart
? mcnt in efficiently conducting the loan
operations OF the Federal reserve
banks. further sought TO develop u
general policy that would support and
aid tho banking community at largo
III taking and distributing the new
issue Of bonds For this purpose IL
frs, established Il special rate OF per
cent per annum FOR the discount at
Fedora, reserve banks of the direct
nftccn-day obligations OF member
banks secured by the temporary Ger
tincatcs Of Indebtedness which were
ISSUED III order Ia anticipate the pro-
cccdS Of the sale OF the new bonds.
Carrying further this same policy.
il later established a - per cent rate
! OF discount at Federal reserve banks
I intended for the nincty-day paper OF
ordinary bank borrowers thereby en-
aiding the member banks of the SyS-
tenn to extend accommodation to bond
! buyers in The assurance that they
would be able 10 obtain accommodation
from tho Federal reserve banks by
D feulStOuntins tnCSS ntltS III tTuSE W
aid the customers of banks not MEM
bcrs Of the Federal reserve system,
! il further authorized the member
/ banks TO act as agents for nonmc!nbcr
institutions by rcdiscountinE the notes
of bond buyers who desired I" obtain
assistance from their own banks with
on, being obliged to transfer their
business 20 member banks. Savings
Il
I surcd that the board would III every
way co-opcrat" with them IN avoiding
shock or disturbance tn existing con-
ditions. and that the Federal reserve
system stood ready to cNtrnd 10 them
! rca sonablc accommodation in the
even, Of necessity resulting from with
drawals made ~ dcpositors IN order
10 purchase or invest in government
bonds.
No account of the service cf the
Federal reserve system would. how
ever. Ice complete without a reference
20 tho process by which The actual
work OF floating III bonds Of the ncw
Liberty loan WAS carried out. Such
undertakings are always best described
by those who have had to bear ;hc
brunt OF them. William Nice Martin,
/ chairman OF the Federal Reserve Bank
of st. Louis. who. in common with
other Federal reserve agents. bore AN
| important part in the task OF locally
placinE the new loan in the several
districts. has sketchcd this undertake
| ing in hitherto unpublished state
mcnt as follows
On the night o; May the Score
tary Of the Treasury issued to the
press statement giving such details;
OF the loan as had been agreed anon
up to that time. At tho same time
! he advised the Federal reserve banks
that he had decided TO use them as the
central agencies for handling the issue.
ARRANGES IN ONE MONTH
PLAN FOR Liberty BOND SAIL:
On May u the full prospectus was
tclegraphcd the banks 10 l." made
public on Monday. the 18th. The sub
scription$ had TO close on June L.
so the Federal reserve banks had Jus ,
one month in which to perfect an or
EaniZation for the sale Of the pronor-
ton of Se,00o.000, 300 of bonds allotted
10 the respective districts. and for the
handling OF details OF the subscrip-
lion.
1t took twenty days TO perrec, the
prospectus, and one month was left in
/ winch 10 try to get into personal touch
I with the people in a country 50 large
as ours. With these facts. even thong !,
one has faith TO believe that our ma :
I non can do anything. he cannot help
wondering whether in SO short :! time
the bonds could have been sold with
out the Federal reserve banks Few
people. unless they have had actual
| experience, realize the mul;iplicity Of
aetaii involved in distributing subscrip-
non banks, receiving them back prom
cry iiled. entering them on the
records. answering questions and y, :
SciElne the first cash deposit
NO district handled less than $40
c"o'ooo IN subscriptions, many were in
II ~ q.
forgotten that subscription for $50
!ahcs as much detailed work a. ono
t"r sl.ooo.oop 1t must also he 70
hemhered that in so larr" loan $50
SUBSCRIPTIONS are very desirable. |;
VIII be even more necessary =, 80,
/ ;hem in the next Offering An iii
once work tho Federal reScrv. HANKS
. had 10 attend to in thirty days When
mo aliotmchts were Announced ,f,.r
June -. the books had 10 MAXI M
"oluSt ments and receive the !nstallmcn,
payments
multiplicity Of detail can lao han
dl"d only by division Of labor. and r,r.
'u""'elN thcr" were twclvr Ec1.rI ~,
serve banks. we'll organized wo,I.j,c
,Hr'h,r under tho supervision of The
rcdcrai Reserve Board. with officers
,oc"'i! known TO tho public serves.
..ch oank mad dehni,c district IN
when II had established practiraIIv
I daily relationship with the oib,r h,,i'.
~ Is believed that no bank. .roun of
phhhS. or all the banks i'm any civ
'h G'Ncn territory could have had the
u"H'iHSh cooperation Of all elements
IN inc community that was given 70
'ne Federal reserve banks. They were
''""S6 the possibility OF ANY suspicion
OF serving selfish ends. Thcv coild moi
possibly have any purpose other rhan
/ I" make IN" Liberty loan Il great sue
cess. and banker. broker. manufacturers
BUSINESS man. and laborcr could ioin
,oScihcr under the leadership Of an
I institution for which there could he no
/ business jealousy.
INC working out in twenty DAYS OF
q prospectus governing so large an is
Su"' without precedent in this conn
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