Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-10-16

kbI hoNktNd JOURNAL SPECIAL IGhsEp
Washington, Oct. l5.-President
Wilson tonight sounded call for the
mobilization of all the nations gold
reserves under the supervision of the
federal reserve hoard.
In statement made public through
the board, the president called upon
all eligible non-member state banks
and trust companies TO join the fcd-
eral reserve system without further
delay that they may contribute their
share" to the consolidated gold re-
serves Of the country and aid more In
a vigorous prosecution and success
full termination of the war"
Scores Are Assisting.
Scores of such institutions have
flocked to the system within the past
three weeks, among them some of the
largest trust companies in New, York.
Philadelphia and other cities The
movement the federal reserve sys-
tenn has lacked only b final impelljng
force to assume the proportions Of a
landslide. Within less than three
weeks resources OF such institutions
in the system have risen from s1,20o,-
600, 900 to more than $4,000, ,O00,0VO.
Liberty loan financing, the resultant
activity in the money markets, the ef-
feet of the governments huge finan-
cial transactions upon the bond mar
kets and the stock exchanges Of the
country have made it imperative, in
the view of the administration, for
the federal reserve to control not
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 TINS
control be acquired as speedily as
possible. IL
VIII Strengthen Finances,
With the board in active. daily con-
troll of the country's huge store OF
gold. at present more than 81, 900. .o00.-
600. watching every avenue through
which II may be lessened and vigilant
in it's supervision of the country's
banking activities, officials believe
that the financial position OF the conn-
try may be rendered as nearly inn
pEegnable as human skill can make II.
At present the board controls the
activities OF institutions representing
only one half Of the country's total
banking resources The latest report
of the comptroller of the currency
places at several millions above Vs.
900. 600, 900 the resources OF the banks
within the system, Since that report
was issued, however, nearly sl.boo,--
Oo0. 900 In resources have been added
through the acquisition of new mem-
bers.
Many Banks Eligible.
There are, however. between 5000
and 5000 eligible banks and trust
companies with resources estimated
at from $4,000. 100000 to $4,000
900. 900 whose activities are entirely
beyond the control of the federal GOV
ernment being governed only by state
laws. The president addressed him-
self to these institutions.
His statement says:
at is manifestly imperative that
there should be complete mobiiiza--
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 the very great III
nancial requirements imposed upon
our country by reason of the war.
War Depends on Cash.
"a vigorous prosecution and sate-
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 it in the
war which must be kept supplied with
munitions, fuel and supplies Of all
kinds.
THE banking problem involved IS
one which concerns all banks alike.
The important functions OF the feds
eral reserve banks In the sale Of the
governments securities, in receiving
and transferring the billions of dollars
involved in supplying credit facilities
and in protecting the reserves Of the
country have become so familiar to
all that I am sure 1t is unnecessary
to dwell upon or expound them.
Federal Reserve Banks.
THE extent TO which our country
can withstand the financial strains for
which we must be prepared win de-
pend very largely upon the strength