New-York tribune., 1918-06-21
All Resources Needed
r. H. Tremain Tells N. Y.
Bankers They Accept Bene-
fits and Give No Return
EITHER Cooperation or a
Financial House Divided
Against Itself Will Result"

ATLANTIC CITY, June 20.-R. H
Tremain, deputy governor Of the Fed
eral Reserve Bank of New York, and
Pierre Jay, agent for the institution,
urged members of the New York State
Bankers Association to-day at their
twenty-ffth annual convention, in the
Hotel Traymore, to ally their banks
with the Federal Reserve system. They
pointed out that the state bankers are
deriving benefit from the system and
arc Withholding their full cooperation
at a moment when every resource is OF
value to the nation.
Estate institutions represent 30 per
cent of the banking resources Of this
nation" said Mr.. TrcmaiE, ":.nd every
last one of them Is benefiting through
the sense of security and other bene-
fits which the Federal Reserve system
has brought to pass. If you do not
unite with US we shall have q financial
house divided against itself. Unite the
state banks Of tho country with the
system and we shall have financial
bulwark that will withstand any as
sault.
Growth of Resources
"To- day the banking resources of the
United States amount to $4,000, 100000,
or more than seven times what they
we're in 1890. Before the war when
this country needed credit it went to
Europe for it. War has reversed this
situation. III three and half years
this country has purchased $2,500,000,
900 Of American securities from Eu-
rope and up to last week had loaned
our allies across the sea $5,490,000 900.
Starting with 1914, Federal Reserve
banks had resources of $27O,OOO,OO0.
! Two years later resources had grown
and on June II their resources had
reached a total Of 1911, 100000. In a
sample days business, the New York
Federal Reserve Bank on May % last
handled rediscounts amounting to
S5 400 100000, collected notes on Lib
erty loan collateral amounting to
$26,500,000 and certificate Of indebted
ness loans Of s1l6, 100000.
"The Federal Reserve system has
measured up TO every requirement.
Reserve deposits of the system in 1914
amounted to s249,ooo, 900, in 1916 to
$648, 100000, and on June Z of this
year to ST 900. On June ID the
New York bank held total gold re-
serves amounting to 1861, 100000, and
the whole system had gold reserves Of
81 1854, 1000, 900.
Discounts Growth Large
"Rediscounts have grown in similar
proportions: In 1914 4e banks bor-
S22 900 600; in 1917, 332 banks $6,513-
100000 and for the first five months Of
1918 377 banks have borrowed S4,000,-
900 1000. At present we are holding in
New York $1,e7o, 100000 of gold accu,
mulated in three years. We shall
probably have to ship out some Of our
gold soon, for the balance of South
American trade is running against u.s."
II call upon you now as citizens to
do your part in strengthening the
credit of our country and Of the other
in this world emergency. The CO.
operation of the state banks Is need
ed, and it should be forthcoming"
John Fl. Gregory, president Of the
association, declared in his address
that the Shaffroth bill to guarantee
deposits up to $4,000 was a menace to
! the banking system, and should be de-
| feated.
"This bill is the reverse Of q safe
guard" he said, "since it puts pre-
MUM upon careless and inefficient or
even dishonest banking, with the price
Of all these evils to be paid by con-
servatively managed and successful
banks. Further, l think that the time
is most inopportune for such legisla-
ton, because by the statement OF the
Controller Of the Currency it has re-
suited in a shifting of deposits from
national to state banks in the few
states which have a guarantee law"
The New Officers
The National Bank section elected
these officers: President, S. E. Ward
New York; vice-president, F. A. Bos-
worth. Utica; secretary, J. C. Curtis
Albion; executive committeeman, A
G. Stone, Ithaca; Dewitt E. McKins
try, Newburgh. The following were
elected by the State Bank Section
President, Edward Wells, Johnstown;
vice-president, J. O. Sheldon. Gouver
neur; secretary, A. Flagg Robson. Penn
Van; executive committee, Ottt
Churchill, Hamburg, and c. M. Smith