The Bridgeport evening farmer., 1917-12-08

sity of going forward, resolutely and regardless of sacrifice, to the accom- plishment of the great task to which God has called us"
 The Federal Reserve System re- ceived Secretary McAdoo's enthusias- tic praise for it's part in the war financing program. He pleaded for further strengthening of the reserve system by the entrance of State banks and trust companies.
 Intelligent men all over the coun- try" he said, 'are beginning to real ize that the financial power of the United States should be strengthened to the utmost limit if we are to meet successfully the tremendous strain upon our resources, occasioned by our own part in the war and by the cred it's which it is essential that we should extend to the foreign governments cooperating with us in the war, and if we are to be equal to the demands. in large measure, at least, of world leadership which will inevitably be thrust upon us as a result of this war.
 Financial strength can come along from consolidation of the financial powers of the country under one homogeneous system. It cannot be had under the present arrangement, involving as it does 49 separate bank ing systems or banking controls in the United States. In the Federal Sys- tenn we have the one cohesive and powerful financial organization in the country. In addition to the Federal System, we have AS systems, author ized and administered under the laws of each of the States or the Union. This is a serious element of weakness and will be proven so when the test of 8 great responsibility and need comes. We must be prepared for a larger measure of international de- mand upon our resources in the fu- ture than ever before in the past.
 Self-interest alone should compel every eligible State bank in the coun- try to take membership in the Fed eral Reserve System. But in addi- ton to that, in this grave time of national peril, patriotism should com bine with self-interest to make them take that course.
 "It is my earnest hope that the State banks of the United States will see this question in it's proper light. They have been joining the Federal reserve system recently in greater numbers than ever before, but prog ress should now be even more ra pid. The Federal reserve law is now so liberal to State banks that they get nothing but advantage by joining the system, while they are bound to suf- fer serious disadvantages. especially in time of test and trial, if they re- main outside"
 The secretary disclosed that neu- tral countries had entered cordially upon negotiations looking to stabiliz- l ing foreign exchange rates without shipping from the United States the
 gold which had been accumulated here in the last few years, At the the negotiations had been completed. 1 Under the governments system of | forbidding gold exports except under license by the Federal Reserve Board, | Secretary McAdoo explained, "the exportation of gold has not been per-
 mitted except in those cases in which | unusual circumstances have seemed to justify the issue of licenses for it's export. The department has not,
 however, rested contest with a mega tive policy of prohibition, but has ini- tiated series of negotiations having for their purpose the substitution of arrangements which, while holding l the necessity for large exports of gold,
 would yet stabilize the exchanges be-
 tween the United States and neutral
 countries"
 Although the nature of these nego-
 tions were not disclosed. it is under stood they relate to investments in
 the United States by neutral capital 1 and to restriction of imports from
 neutrals. The secretary explained that the United States now held more
 than one-third of the worlds gold
 monetary stock.
 i Praising the policies of the farm loan system, Secretary McAdoo said some method must be devised for dis
 posing of farm loan bonds as soon as
 issued in order to avoid suspending
 the loaning operations of the banks. l He recommended also "that the limit
 of $10,000 imposed by law upon loans
 to any one individual be increased to l S25,0o6."
 Up to one week ago credits ex- tended to allied government amount 1 ed to S3,SS3, ,9e0,000. The latest loans have been at F per cent. but Secre-
 tary McAdoo explained that this rate
 in turn will be further increased in case there should be higher rates of
 interest paid by the United States
 during the continuance of the war for
 the moneys that it may invest in the purchase of foreign obligations"