The sun., 1918-10-10
PATRIOTIC APPEAL
TO STATE BANKERS
Urged to Join Federal Reserve
System and Mobilize
Credit for War.
DEMANDS STEADILY GAIN
New York Branch Points Out
Urgent Need Of Rounding
Up Resources.
DEMANDS STEADILY GAIN

The Federal Reserve Bank or New
York is making a renewed appeal to the
banks of this district outside Of the re-
serve system, II was announced yester-
day, asking their reconsideration Of the
OF joining the Federal Bank
system Immediately. The appeal Ia based
upon the necessity Of mobiliztnR credit
for the prosecution OF the war. and let
tiers to each of the 272 banks In this
district not members have been mailed
in a patriotic endeavor to convince them
that their own interests should he side
tracked for at least the duration of the
war.
Since the Federal reserve statute was
ena acted eighty-nine State banks and
trust companies in the Second Federal
reserve district have Joined the system.
Most Of them have done 80 since last
year. when tho Guaranty Trust Com
pany. the largest institution Of its kind,
set the pace by becoming q member.
This includes. however, twenty-seven
banks that have Joined since July !
ten In September.
Figuring on the basis OF the num-
Der OF applications on hand. Federal Re-
serve officials said yesterday that at
least ten would be admitted this month.
This pace, however. 10 not fast enough
to suit the governors and directors Of
the bank, and they are making q pub
Ito appeal on purely patriotic motives
to these institutions TO come into tho
fold. II for no other purpose than to aid
the Liberty Loan and place the re-
sources of the district squarely behind
the Government In tho war.
VIII Ask All Banks to Join.
That this appeal will also DO made In
the eleven other Federal Reserve dis
tricts OF the country is indicated by the
fact that the total resources Of the insti-
tutions outside of the system are more
than billion in excess OF the resources
Of those in the system. Last April, ac-
cording to figures supplied by the local
bank. the total resources Of non-member
banks were $1,000. o00. 900. while the re-
sources OF member banks totallsd about
Sc, 600, o00. 900.
The number OF banks OF the entire
country that were members of the sys-
tenn on October 3. the blank says, were
1?l. The number Of non-member State
banks and trust companies for the whole
country. on the other hand, totalled
more than 1900 on that date. This is
taken as indicative OF the possibility
that the Federal Reserve Board itself
may take como steps in the direction of
driving in tho outsiders.
a campaign Of this kind, although not
SO intensive. was begun shortly after the
country entered the war, and while IT
was quite successful 1t has not produced
the results expected. With respect 20
the local situation an official OF the New
York Federal Reserve Bank said yes-
terday:
"Never before has the country been
50 much IN need of the mobilization of
It's entlce credit resources. The credit
demands Will grow with each successive
loan. Already the conservation of credit
for npn-eSsentials 10 a necessity. Tha
effort to conserve credit inaugurated Inv
the Federal Reserve Board only EN-.
phasizes the need for mobilization of all
tof our credit resources
Call to Patriotic Duty.
"Under normal conditions the State
banks and trust companies with their
more or less petty reasons for staying
out OF the system might be Justified for
padding their own canoe. Non-membar
, banks have to depend upon Themselves
for the protection OF their depositors in
| time OF stress or on some member bank
! and in the last analysis the protection
Of theE depositors and their own stock.
holders depends upon the hnancia
strength OF the Federal reserve system
| In View OF this dependence, In view n,
the need TO make the Liberty Loan q
success and In view of the necessity "a
expand the credit resources OF the coun.
try, shouldn't the State hanks and trust
companies that are eligible Join IN,
system az a patriotic duty in View OF In,