The Birmingham age-herald., 1918-05-11
Alabama Bankers Seek to
 Establish Branch Reserve
 Bank in Birmingham
6continued from raEe Five.O

of the world, he declared To meet the crisis precipitated by the world war it is necessary to mobilize all of Amer icas resources, of which there are only three kinds-men, materials and money that is credit The man power, he said, is mobilized in the army and navy; the materials are mobilized through the eff fcient business management at Washing ion. and the money. credits, can only be mobilized through the treasury de- partment. and the only definite expression of the financial condition of the country is through the treasury and the reserve banks The federal reserve banks, he said, are the reservoirs of the country.
 FIRST LINE OF DEFENSE
 The first line of defense. he stated, is the currency; the second, commercial it is necessary to utilize to the fullest extent all the resources of the country and that can be done only by means of commercial paper in place of open ac- counts. He said the Chamber of Com merce of the United States had estimated that S4,000 GOO was tied up in open book accounts that could not be utilized in an emergency. He said America is the only country in the world today where the seller borrows money to pay for goods he has sold. To illustrate the advantages of trade acceptances he stat ed that a merchant owning S100,000 of open accounts and s100,000 of merchandise could not borrow more than s100, GOO, or 50 per cent, whereas, if he had $1oo. 000 of commercial paper instead of open ac- counts his borrowing power would be $l50 000.
 Dr. Henry NJ. Edmonds of Birming- ham, down on the programme for an address, discussed the world war declar- ing that we believed at the beginning that Germany caused the war and that nothing has occurred since to change our opinion. He denounced the atrocities practiced by the Teutonic allies, deciar- ing that when her armies were stopped by the allied armies and she could go no further she fired into cathedrals, first Rheims and now Amiens. He read ex- tracts from the recently published letter of Prince Lichkowsky German ambassa- dor to London at the beginning of the war in which responsibility for the war was charged to Germany.
 PATRIOTIC RESOLUTION
 Col c. L. Conner of Eufaula offered a resolution pledging the resources of the Alabama banks to the nation so long as the war lasts. The resolution. which was referred to the committee on reso- lutions. to be reported back today. reads:
 "Whereas, this nation is now engaged in the greatest war against the most un- scrupulous foe that the world has ever known; and
 "Whereas, our country in this, it's time Of greatest need, demands of all of it's citizens the greatest sacrifices and the greatest patriotism to the end that this war shall be brought to a speedy and victorious conclusion; therefore be it
 Resolved, That the bankers of Ala bama in convention assembled on May 10 191S do hereby pledge ourselves to give our resources and unswerving SUD- port to our government and it's lawful authorities so long as the necessities of our country may require"
 Alex E. Walker. state superintendent of banks, read a paper on the future of state banks, as prelude stating that r discussing the future of any branch or industrial life in the United States for the time being sight must be lost of all war measures, and treat the sub feet purely from a standpoint of normal times.
 ITO hazard a guess at this time in reference to the future of financial 1n- stitutions would be a bold and uncertain task" he said. Money is plentiful and ba nkers in the United States are feeling so secure and so happy, behind wall of deposits, that any note of discord that might tend to jar them loose from this feeling of fancied security, would be cruel and inhuman punishment Of the worst type.
 The future of state banks and trust companies, he stated, was never so bright and full of promise, their combined re- sources showing greater increase throughout the United States than that of the national banks, in proportion to the amount of capital employed, and he said they are increasing numerically more than national banks, thus putting to rest the prediction that the estapisn- ment of the federal reserve bank would by a gradual death blow to the state banks and trust companies
 By reason of harmonious cooperation between banks operating under nauonai and state laws, they are growing III power and working hand in hand TOT the salvation of the country, wing every where with each other in friendly rlvalry to uphold the honor of the United States in this great crisis.
 WAR EMERGENCY
 Referring to the opposition of cer- tain elements to the conferrlng upon the President of unusual powers III the war emergency. MT. Walker said we hear a great deal said these days about the invasion of state. rights ana the destruction of all forms of sep arate state government, and the cen tralization of power in one national government at Washington l admit there is some ground for this bellef. It is the natural offspring of the nc- cessity which arises in every war to acco mp1ish military purposes. No war can be fought without some form Of revolution being wrought in the or derly conduct of nations affairs and the fact that there has not been greater revolution in our affairs and a more widespread effort made to ceh- traiize all power in Washington. is one of the healthiest indications of the in destructibility of state sovereignty
 According to the speaker two dis tinct characters of state banks are gradually arising; the larger banks and trust companies in centers of pop ulation that lend their resources to fhe daya1onp,ant nf large aufernrisaS