Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-09-26

Coaiinuea from Psro One
f.uropean Powers on one side and two on
enc other The Federal Reserve act, even
before the Federal Reserve banks were
fully organized, was the means OF carrying
us safely through that crisis, for the act
extended for one year the life OF the AL
drich-vreeland notes and made their issue
practicable.
"Reyival OF confidence and a return to
normal conditions were coincident with the
establishment of the Federal ReAerve
hanks Their operation has given TO every
element in this country--the national banks.
tho state banks, the manufacturers, the
merchants and the individual depositors-
a sense of security which otherwise would
have been totally lacking.
within a few months four million sub
scribers have absorbed an isesue Of ST.
900 600 900 OF az per cent Government
bonds. the most gigantic financial operation
this country has ever known. Yet there has
been no finanical strinEency, no violent huc-
tantions In call money rates, nor In discount
rates.
MEMBERS HAVE no FEAR
THE country is now about TO engage In
a campaign for the sale OF the second issue
OF United States Liberty bonds. Ihe
amount of the offering viii be az the very
lowest, so per cent greater tran the nrst
The crops Of the country will be moving at
the same time, and we should remember
that before the establishment Of the red
cra Reserve b inks money stringency our
ipg the crop-moving period was mater
Of annual recurrence. The twelve Federal
Reserve banks are the fiscal agents OF the
Government Through the facilities afford
ed by them and by means Of the orgam-
zations which they have Effected the Gov
ernment OF the United states expects TO
gather up the funds necessary for its sup
port in the present crisis. and by reason
-. L. nN Ia
Federal Reserve banks TO rediscount for
them, the member banks look forward with
out fear to the impending demands upon
Them.
THE capital of the state bank and trust
company members of the Federal Reserve
system amounts to more than S6l,00000O
their surplus to more than S62.0J0.O0O and
their total resources to more than Sl2OO,-
O00. 900. and new applications for member
ship are being received every day, from
small banks as well as large. The banking
laws Of Pennsylvania formerly prohibited |
the stock ownership which is necessary for
the admission of bank. but they have
very recently been amended In this re-
Epect
PLEA TO STATE BANKS
"I am confident that IN few weeks
more the resources Of the state menber
banks and trust companies VIII amount |
to more than $4,000. 100000. and I cannot
companies OF America will give earnest
consideration TO the contingencies ahead
of us, motives of self-interest as well as
patriotic desire to cooperate viii deter
mine them to apply for membership, and
that In time the number us state bank
members will be nearer Cighty-tOur hun
dred than eighty-four'
ALLIES DEPEND Oh Us
Frank confession that the burden Of
financing the Allies has been passed on into
the hands of the United States by England,
upon whom rested that burden for the first
three years OF the war we've made by II.
H. Brand munitions commissioner to the
United States from England, in speaking
before the national bank section Of the
American Bank Association in the Hotel
Trsymore today.
Englands war expenditures between
August T. 1914, and August 4. 1917. have
amounted to S25. 900, 900 900, said Mr.. Br md
and the daily expenditures since April l,
1917. including loans to the Allies, have
been at the rate Of S35.00O,OO0 a day.
IF population is taken as a basis said
Mr. Brand, this is equal to an expenditure
in the United States of about S70,00O,000
n day BY our last war loan we raised
So. 600 900 900. With you this would mean
raising, in single financial operation, Sl0,-
600. 900, 00O."
Pointing out that a nation can so on