Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-12-16

,bo;r ,uoucnce in convincing state
hanks OF the dcsirapility OF their join
ing the reserve system. As part OF us
plan OF cooperation. the VIE ma
Council is again addressing the VIZ
rinia State banks on THIS suoJccl' '"'S
time calling the matter 10 M
tcntion through copy or the state
,nnnt rcccntlv issued by President Will
son.
PRESIDENT WOULD
~. President saws: "It is manifestly
imperative that there should ne COM
plete mobilization OF the banking re-
serves OF the United States. All VINO
arc familiar with financial operations
must appreciate the Importance OF oe-
vnIoninr TO tho maximum our banking
nowsr and OF providing financial ma
cb,nery adequate for meeting the very
.rea. financial requirements imposed
nnon our country by reason OF tho
var. A vigorous prosecution and salts
factory termination OF the war VIII ae-
pcnd in no small degree upon the aoii-
ity OF the government no. oh'E ~
finence itself. but also to aid the gov
,rnments associated with it in the war,
which must be kept supplied with
munitions. fuel food and supplies OF all
kinds
.-rhe banking problem involved Is one
which concerns all banks alike. It's So
luton does not depend upon me ma
tional banks alone, nor upon the Stale
banks The burden and privilege must
he shared by every banking institution
IN the country. The important 1unc-
lions Of the Federal reserve banks III
the sale OF the governments securities,
in receiving and transferring the Dill
lions OF dollars involved. in supplying
credit facilities and in protecting the
,tr,s
familiar TO all tina, am sure II is UNI
necessary to dwell upon OF cXpound
them.
TNiIY BANKING SYSTEM
As FUNDAMENTAL IDEA
,"rhc extent TO which our country can
Withstand tho financial strains Tor
which We mus, II. prepared viii de-
pend very largely upon the strength
and staying power OF tho Federal re-
serve banks The Federal reserve act
IL the only constructive financial loE!s-
lRtion which we have ever had which
was broad enough to accommodate n
tho same Inns banks operating under
powers granted by tho Federal govern
mcnt and BANKS whose charters are
granted hy the respective States. The
tnitication OF our bankin. system and
the complete mobilization Of reserves
arc among the fundamental principles
az the act.
TN" State banking institutions for
some reason have uutil recently seemed
inclined "a hold aIoof Congress few
months ago prescribed very generous
terms for the admission OF the state
banks into the Federal reserve system
which have removed tho objections
heretofore raised by State banks when
considering membership. AS the law
now stands il leaves member state
banks and trust companies practically
undisturbcd by the states The law
provides also in definite terms the con
ditions upon which any state bank oy
trust company may withdraw from the
system. Many of tho largest state
banks and trus; companies are now be
coming mcmbttS, realizing that 10 VIII
the war We mu>St conserve all OF tn,
physical. iinancia! and moral resource.
of our country; that our finances mus
rest on I'll" irmest possible foundation
and that they must he adequately ant
completely conserved SO a. 10 respon,
instantly TO every legitimate demand
How can this necessary condition u,
brought about and be made permanent
~ effective better than by the concen
tration of the banking strength Of on,
country in the Federal reserve system
CALLS uPoN ALL BANKS
TO GIVE THEIR SHARE
May not. therefore urge upo,
the officers and directors OF all non
member STATE banks and trust com
names, which have required amount o
capital ard surplus 10 make them eliri
bic FOR membership. to unite with m
feder"l reserve system only and there
by contribute thcir share 20 the con
solidatcd gold reserve OF the country
feel sure that as member banlSe IN.
VIII aid 10 = greater degree than
loss.nlt Otherwise in promoting III