The Birmingham age-herald., 1918-03-22
WellbOrn Addresses
 Alabama Bankers on
 Curtailment of Credit
(continued from Page Five.)

to make nonessential loans. and instead curities would merely be sa srificing a re- duction in interest rates. The very large increase of deposits in your banks, caused by war activities, easily enables you to lose the difference in rates of in- terest between the government securities and your ordinary loans, To my mind, present conditions demand that these sacrifices be made, and believe that the banks will respond to the urgent calls of the government when they realize the necessity of doing so.
 BOND ISSUE AND STOCK SALES
 ''The capital issues committee organ jed by the federal reesrve board. are daily at work restricting and limiting bond issues of municipalities and cor porations that are not timely and not essential to the successful prosecution of the war. The commendable spirit or sacrifice of profits shown by the large bond dealers in cooperating with the government In eliminating these sec'ri- ties from the market and thus reducing the competition of the sale of securities of the government is indeed very grati- flying.
 STATE BANKS
 "In this audience there are quite number of state bankers and it may not be amiss to say a few words to you gen tlemen with regard to state banks be- coming members of the federal reserve system. Our great President. upon whose shoulders rests such heavy burden in these momentous times has recently made an urgent appeal to the state banks to join the federal reserve sys- tenn, in order to mobilize the gold re- sources, which is an essential factor in helping our government in it's time of need In the Presidents appeal he said In part:
 "I believe that cooperation on the part of the banks Is a patriotic duty and that membership in the federal re- serve system is distinct and significant evidence of patriotism. The extent to which our country can withstand the financial strains for which we must oe prepared will depend largely upon the strength and staying power of the fed eral reserve banks
 114 BANKS ELIGIBLE There are in Alabama 114 state banks eligible to membership in the federal reserve system, and it Is with regret that I am compelled to say that only three of the state banks have so far responded to the Presidents call. May ask if this is sad commentary on the patriotism of our brother state bank CTS, or is it that they have not taken time to consider the Presidents appeal very seriously?
 The federal reserve system is admit tedly the most scientific financial sys- tenn the world has yet seen, and 1t Is Iq quite noticeable the remarkable apathy on the part of the state banks to em- brace the opportunity of Joining hands with this financial system for the good of the whole country. If the state banks came into the system, 1t would tremen- dously add to the potential strength and lending power of the federal reserve l banks; for thees reserves. if converted into gold in the federal reserve bank, can be made to produce two and one half times itself In federal reserve notes. believe that we all realize the gigantic task that this war imposes upon us. and the end of which no one now foresees. When you are told that this war is an easy one for us and that 1t will soon