Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-03-12
State Banks Should Join
The Federal Reserve System.

IN identifying itself with the Federal Reserve
System the Bank of Camilla, Camilla, Ga. has
- set an example of timely patriotism as we'll
business sagacity. This is the eighth State bank
in Georgia to respond to President Wilson's appeal
ito unite with the Federal Reserve System now, and
thereby contribute the consolidated gold reserve
of the country"
81 believe" the President added that
operation the part of the banks is a patri-
otto duty and that membership in the Federal
Reserve System is a distinct and significant
evidence of patriotism. The extent to which
country can withstand the financial strains
for which must be prepared will depend
largely upon the strength and staying power of
the Federal Reserve banks"
The other Georgia State banks which have
squared themselves with this sound and loyal prn-
ciple are the Citizens and Southern Bank, of SaEan
nah; the Central Bank and Trust Corporation of
Atlanta, the Trust Company of Georgia, Atlanta;
the American State Bank, of Athens; the Savannah
Bank and Trust Company; the Brunswick Bank and
Trust Company; and the Citizens Bank, of West
Point.
These institutions are serving the best interests
of their depostors and stockholders and the best in
terests of their community and State well do
ing their part toward the winning of the Men,
bership in the Federal Reserve System is privilege
as we'll as a duty to which State bank should be
Indifferent. This System combines the resources of
some nine thousand member banks whose total
strength stands protectingly behind each individual
member. Furthermore, it reduces the amount of
requirements from an average of fifteen to
seven per cent, and thus releases millions OF
dollars for lending purposes. These reserves, as
an authority points out are converted into gold in
the twelve Reserve Banks, each dollar of which
be made to produce two and one-half times itself
in Federal Reserve notes, currency, that are
backed up with forty per cent of actual gold and
one hundred per cent commercial paper which bears
the Endorsement of member banks who have redis-
counted with the Federal Reserve Bank and the
payment of which guaranteed by the United States
Government" It should be noted, moreover, that
in becoming members of the Federal Reserve Sys-
tenn State banks retain their full charter and statu
tory rights. They may withdraw from the System
upon six months notice, if they wish, though as
matter of fact no bank that ever enjoyed the ad-
vantages and prestige of membership in the System
would have thought of Withdrawing.
With nothing to lose and with much to gain,
State banks which eligible to membership in the
Reserve System should respond unhesitatngly to
President Wilson's appeal. 1t is as much their duty
to put their strength and influence back of the Gov
eminent at this crucial time it is the soldiers
duty to fight the farmers duty to raise food, the
average citizens duty to money and buy Lib
erty bonds and Thrift stamps. Large numbers of
State banks throughout the country realizing their
patriotic obligation and their business opportunity,
have Joined the Federal Reserve System. But in
Georgia there are some two hundred and fifty ELI
gible State banks which have not yet applied for
membership. To all these, the example of the Bank
of Camilla and its companions on the Georgia
roll Of honor should be keenly inspiring The Presi-
dent has called upon them to rally to the nations
assistance in its hour of great need. Surely. they
will not stand unmoved by such a summons