The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-10-16
imperative That There Shall Be
Complete Mobilization of
All Banking Reserves
MEMBERSHIP HELD TO
BE PATRIOTIC DUTY
Extent to Which Country Can
Withstand Financial Strain
Dependent Largely on Stay
ing Power of Reserve banks

Washington. Oct 15.-President
Wilson believes that every bank and
trust company. national state or pri-
vats. should be a member OF the
federal reserve system Only thus,
he says Will IL De possible properly
to mobilize the country's banking re-
sources for the great burdens which
the war must impose. Thus, he says,
bankers may best fulfill their patriotic
obligations.
The president has embodied these
ideas in a. signed statement which
the federal seresve board Ia tonight
sending to every banker In the United
States. Il La as follows:
1T is manifestry imperative that
there should be a complete moziliza-
tlon OF the banking reserves of the
United States All who are familiar
with financias operations must ar
prectate the importance of dsposfng
to the maximum our banking power
and of providing financial machinery
adequate for meeting the very great
financial requirements imposed upon
our country by Sreason OF the war.
A vigorous prosecution and satisfac-
tory termination OF the war will de-
pend IN no small degree upon the
hU@1tAS VA tiiT EohEt iA4AFAtN NV way
to finance itself. but to aid the gov
ernments association with n I'm the
war. which must he kent supplied
with munitions, fuel. food and sup
plies Of all kinds. The banking pro-
hien involved Ia one which concerns
all. banks alike. It's solution does not
depend upon the national hanks alone.
nor upon the state banks The bur
den and the privilege must be shared
by every bank institution in the coun
try The important functions of the
federai reserve banks in the sale or
the government securities in receiv-
ing and transferring the billions Of
dollars involved. in supplying facili-
ties. and in protecting the reserves OF
the country have become so familiar
to all that ] am sure II unnecessary
TO dwell upon or expound theF.l
Depends on Reserve Banks.
THE extent to which our country
ear withstand the financial strain FOR
which we must be prepared win de-
pend very largely upon the strength
and staying power Of the federal re-
SERVE banks. The federal reserve act
Ia the only constructive financial fegis
lation which we have exer had which
was broad enough to accommodate
at the same time hanks operating
under powers granted by the general
government ard banks whose char
ters are granted by the respective
states The uniffcation of our bank
ing system and the complete mohiH-
cation of reserves are among the
fundamental principles Of the act
The state banking institutions for
some reason have until recently seemed
inclined to hold aioof. Congress a few
months ago prescribed very generous
farms for the admission OF the state
banks into the federal reserve system |
which have removed the objections
heretofore raised by state banks when !
considering membership As the law
now stands IL leaves member state
bank and trust companies practically |
undtsturbed in the exercise OF all the
ban king powers conferred upon them
by the states,
The law provides also IN definite
terms the conditions upon which any
state bank or trust company may
withdraw from the system. Many of
the largest state banks and trust COM i
panies are now becoming members |
realizing that TO win the war. We must
conserve all of the physical. financial. !
|