The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-02-17
RESERVE BOARD PLANS
TO f0aESIAll TROUBLE.
Banks Threatened With Runs by Pro-
Germans VIII BE Given I'm
mediate support.
COUNTRY IN HIGH STATE
OF FINANCIAL PREPAREDNESS
Owners of Shipments Tied Up by
blockade VIII Also BE Given Relief
on Bills of Iading on Non-pcrish-
able Products.

Washington, Feb. 16.-Anticipating
tate temporary business strains in the
United States, the federal reserve
board. II was learned tonight. has
laid extensive plans to fortify the
country against dangerous develop
ments, 1t has ordered the ptIing up
of a supply of federal reserve notes
10 he used to forestall currency strin-
gency, lack OF confidence in financial
institutions and general uneasiness on
me part of the people of the United
States
Already the board has received In
timations that a need for hasty fnanc-
ing may come at any moment. In
some cities banks have been subject
ed TO runs. II being said that German
sympathizers were Withdrawing their
funds IN an effort to embarrass the
banks. To both member and nom
member banks of the federal reserve
system. the federal reserve board
quietly directed that instant relief
he afforded. In some instances large
sums OF gold and In others large guam
titles of notes have been shipped to
points under stress. with the result
that financial uneasiness was localized.
Congestion Brings Problems
interested in the tremendous stores of
goods piled at the North Atlantic sea-
ports, The new German submarine
warfare has prevented the trans
shipment Of thousands Of tons or ex-
port merchandise This is held In
storage and cars and the owners are
unable 70 get theh" money for the
goods.
Realizing that many owners Will
have to finance these goods. the fed
cTal reserve banks expect 10 be called
upon TO advance money in couscrva-
tive amounts on bills Of ladlng, ware
house receipts and other evidences OF
ownership of non-perishable COM
rrpti:teS T hrs will enable the owners
of the impounded wealth to obtain
funds at a reasonable rate OF interest.
which VIII tide them over the pres
ent period of staRnation or commerce
due to Germanys warfare.
The railroads OF the country are
making herculean efforts to aid the
situation also. Following a confer
ence of thirty big trunk line railroad
executives, at which It was agreed to
st!Een embargoes and prevent the
movement eastward of all freight
but that actually needed for food and
heat the railroad men have returned
plan into active operation. The in
terstate commerce commission today
announced that Il Is cooperating in
the work
Planning Mobilization.
Meantime railroad representatives
are comforting with officials of the
war department on plans for the
of the railroads OF the ma
tion for purposes OF modifying
troops. II necessary. transporting
supplies and munitions and otherwise
furtherlng the work Of national pre-
paredness. This work Is being drne
largely In secret. IT is admitted. how
ever. that a clockwork system has
been devised whereby the utmost
usefulness can be obtained from the
American railroad system on the
shortest notice.
George NJ. REYNOLDS, one Of tho
leading ienkers OF Chicago has in
formed the federal reserve board that
he. and many other representative
American bankers feel that the coun-
try Is now in A position to Withstand
"a financial strain eight times as great
as that felt In the panic of 1907. The
board Is especially anxious that its
preparations do not lead the public
to feel that there Is imminent danger
Of financial chaos I'm the country. II
states that its action In preparing for
any strains is wholly precautionary.
and. in all proba bility, never will be
made necessary.