Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-10-16
PRESIDENT CALLS
. FOR MOBILIZATION
OF GOLD RESERVES
Urges State Banks and
Trust Companies to Join
Federal System.
MEMBERSHIP is DISTINCT
EVIDENCE OF PATRIOTISM
Would Make Financial Condition
of Country as Nearly I'm
pregnable as Possible.
MOVEMENT NOW UNDER WAY
Lacks Only Final ImpcIling Force to
Assume Proportions of
Landslide.
MEMBERSHIP is DISTINCT
EVIDENCE OF PATRIOTISM
MOVEMENT NOW UNDER WAY
Lacks Only Final ImpcIling Force to
Assume Proportions Of
Landslide.

dent Wilson tonight sounded call
for the mobilization OF all the nations
gold reserves under the supervision Of
the Federal Reserve Board.
In statement made public through
the board. the President called upon
and trust companies to join the Fed
eral reserve system without further
delay that they may contribute their
share" to the consolidated gold re-
serves OF the country. and aid more eff
fectively in "a vigorous prosecution and
successful termination of the war"
Scores Of such institutions have
flocked to the system within the past
three weeks. among them some OF the
largest trust companies OF New York,
Philadelphia and other cities The
movement to the Federal reserve sys-
tenn has lacked only final impelling
force to assume the proportions OF a
landslide. Within less than three
weeks, resources of such institutions in
the system have risen from s1,2oo.ooo.-
600 to more than $4,000, 100000
| Liberty loan financing, the resultant
activity in tho money markets. the Of
feet OF the governments huge fnan-
ciar transactions upon the bond mar
kets and the stock exchanges of the
country, have mads 1t imperative, In
the view OF the administration. for the
Federal Reserve Board to control, not
major fraction OF the gold reserve
OF the country, but the entire amount.
The recent embargo on gold exports
has made II highly desirable that this
control be acquired as speedily as pos
sible.
WANT TO DE- IN CONTROL
OF HUGE STORE OF GOLD
With the board In active daily con-
troll Of the countrys huge store OF gold,
at present more than $4,000, 900 600,
watching every avenue through which
1t may be lessened and vigilant in Its
supervision OF the country's banking
activities, officials believe that the
! financial position of the country may
he rendered as nearly impregnable as
| human skill can make it,
At present. the board controls the
activities OF Institutions representing
! only onc-haif OF the country's total
banking resource The latest report
or the Comptroller of the Currency
places at several millions above Sl6.-
ooo,oO0co0 the resources of the banks
within the system. Since that report
was issued. however, nearly $1,000. O0O,-
ooo IN resources have been added
through the acquisition Of new MEM
bers
There are. however, between $500
and 5000 eligible banks and trust COM
pantes. with resources estimated at
from Sl2.0o0.0OO.00 to $4,000, 600. 900
whose activities are entirely beyond
the control OF the Federal government.
being governed only by State laws.
The President addressed himself to
these institutions. In his statement he
said:
! 1T is manifestly imperative that
there should be II completes mobiliza-
ton Of the banking reserves of the
| United States.
"A vigorous prosecution and satis-
factory termination of the war will
depend in no small degree upon the
ability OF the government. not only to
| hnance itself. but also to aid the gov
crnments associated with IL In the war,
which must be kept supplied with mu-
| nit!ons. fuel. food and supplies Of all
kinds.
PROBLEM INVOLVED
CONCERNS ALL BANKS ALIKE
The banking problem involved is
one which concerns all banks alike.
! Its solution does not depend upon the
national banks alone. nor upon the
State banks. The burden and the
privilege must be shared by every
| banking institution in the country. -.
! May not, therefore. urge upon the
| officers and directors OF Ill E:nmom-
bcr State banks and trust companies
which have the required amouat OF
capital and surplus to make them
I eligible for membership to unite with
the Federal reserve system aow, and
thereby contribute their snare to the
consolidated gold reserves OF the coup-
/ try? l feel sure that as member banks
/ they Will aid TO a greater degree than
! Is possible otherwise In promoting tho
national welfare. and that at the samo
I time by securing for themselves the
advantages offered by the Federal re-
serve system they will best serve their
| own interest and the interest OF their
customers | believe that cooperation
/ on the part OF the banks is q patriotic
duty at this time, and that membership
| in the Federal reserve system 10 q dis
tinct and significant evidence OF pa
| triotism."