Evening star., 1918-04-12
CONCENTRATION PLEA
MADE FOR FINANCE
BY A. FLEMING.

By I. A. FLEMING.
IN the present national crisis the fed
sral rssSrvs banks Of the country and
the President Of the United States are
pleading for the concentration of the
banhine power Of the nation in the fed
eral reserve system. urging state banks
and trust companies to throw their I'm
msnSs resources In the system.
It is claimed that neither the banking
business nor the commerce Of the ma
tion can grow az 1t should without a
more unifed system. Approximately rs
DER cent Of the commercial banking re-
sources are in the federal banking sys-
tenn, but only about 80 per cent Of the
banks.
George J. Seay. governor of the Rich
mond reserve banks says:
1T Is not enough. More complete con-
csntration of reserves and broader
rold base are required that we may run
no risk OF failure to soundly prepare
70 meet the nations credit needs"
President Wilson declares that ut Is
manifestly imperative that there shall
be a complete mobilization Of the bank
ing resources Of the United States and
this cannot be without the state banks
ana trust companies coming III.
1t is held that this is no time to
quibble over the loss of few dollars
or hundreds of dollars annually through
loss OF collection charges; that this Is
not the time to worry over the fact
that surplus reserve in member banks
does not earn interest, when vastly
more important matters are OF daily
consideration. Furthermore. rights of
great trust companies entering the sys-
tenn are not invaded in any way. A
little larger reserves never injured the
status Of any bank.
without this system (unified and
concentrated) it would be impossible to
finance our enormous domestic and for
eign trade, to raise the tremendous
credits required to assist foreign gov
ernments making common cause with
US against Germany and to take care
of the extraordinary expenditures en-
tailed by our part in the war."-The
President.
1T is therefore with the feeling that
the statement OF the President contains
q warning as we'll as an admonition
that we bring it before the officers and
directors Of the state banking institu-
tions OF the NTH federal reserve dis
trict."-George ]. Seay.
The address of the President and
other facts were laid before all state
dication Is plain that further pressure
will be applied unless the suggestions
are effective in causing a larger influx
- state banks and trust companies into
the system.
Putting on Penalties.
1t Il also within the power Of the Fed
eral Reserve Board. and they are using
their power In this respect. to favor
banks In the system at the expense of
the. banks that are still without the
fold.
A large balance carried by a mem,.er
bank with a non-member institution
was recently ordered withdrawn, the
claim being made that 1t was an ex-
Ance might readily be carried with
member banks
II . full unified system of banking is
only possible through national legisla-
ton, an enort by the President toward
such unincation might readily be ex-
pectsd to bring reSults.
1ar Silver Very strong.
The prospects for the passage of the
bill FOR the fixing Of one dollar an
ounce a. the price at which the gov
eminent viii buy all silver offered. has
hAd decided effect on the market for
bar silver In the last two days. From
around ssK It advanced early in the
wax to SIN and yesterday touched
IN up points. while today IL also
sold At e3x. Mexican silver dollars
nave also advanced. 30 that they are
nov Is cents each. instead of the so
eents Of . few years ago.
Mercantile Preferred Dividend.
Directors OF the International Mer-
oaatils Marine Company met yesterday
md declared Q s per cent on the pre-
fefred shares. acting conservedly, as
310y hed looked Tor several times that
declaration.
1sdtscount Rates.
The prevailing rates Of rediscount in
the nth district. Richmond reserve
bank. have been revised as follows:
emberf banks collateral secured by
liberty bonds or Treasury certificates
Jiftssn days and less. 4 per cent; Gus
temsrf notes tndorsed by members,
same secufity. per cent: sixty to nine
ey days. IN per cent. Members banks
eonaterai notes. secured by eligible pa
aeeeptancea, Az per cent; for sixty TO
ninety days. ~. Commercial paper.
eAort maturity. Az and Az.
Ths revision was made to meet the
Tates at which banks have agreed 10
anAnce liberty bond subscriptions.
On the Stock Exchange.
Business on the daily session of the
3cal stock exchange quieted down
oGAdn this afternoon. Probably the re-
eeesions IN prices In New York may
nsvs checked buying operations, al
ehouGh there has been small sym
pathy betwsen the movement on war
street. and in the local market for
many days.
Transactions included washineton
Gas shares At 60; a little Lanstor
1enotype stock at 81. a few shares OF
Aerxenthaler at lis. a slight decline,
ana Capital Traction S. at 90. Bid
prices were OF, as a rule.
CAPT. WILMARTH TO HELP
IN MODELLING FOR DRAFT