The Birmingham age-herald., 1918-01-06

traction of private credits wherever prac- tieabe without causing hardship. We must look to the future, and prepare increasingly for further demands which may be made upon us.
 "The products of the fields, the forests. the mines, and the manufacturing es- tablishments of Alabama are no- in the nature of luxuries. They all. per- haps, without exception. be classed as necessities, and with the outlook ahead of us, there seems to be TO possibility of overproduction. It seems, therefore e, that the banks of Alabama, from the standpoint of good business as well as from patriotism, should lend their funds and credits freely to those engaged in these productive enterprises, and their power to serve the country in this way will be increased by the clrraiiment of unnecessary credits and by the adoption by the people generally of | policy of common sense, practical economy.
 T would call your attention also to the very great assistance which it is in the power of the federal reserve banks to give to their member banks by re- discounting paper growing out of agri- cultural, industrial and commercial transactions. The federal reserve act as amended last June provides that state banks admitted to membership may re- tain all of their statutory and charter POWSis Il HuS Sldle DdHh fHeHIDeTS are governed by their own state laws and remain under the supervision of their state banking departments. Their in- terest rates and the limita tions upon their loans are determined entirely by state law.
 There are many good banks in the state of Alabama which can easily qual- . fly for membership in the federal reserve system, and I would make reference to a statement issued by the President of the United States on October 13, last
 in which he called attention to the fact that the extent to which our country can withstand the financial strains for which we must be prepared will de- pend very largely upon the strength and staying power of the federal reserve banks, and in which he urged the inn portance of developing our banking power to the maximum degree and of providing financial machinery adequate for the very great financial requirements imposed upon our country by reason of the war. He pointed out that all banks should cooperate in strengthens ing the position of the federal system thereby strengthening the nations bank ing power, and urged upon every bank officer and director to consider the. aues- ton of membership in the federal re. serve system as solemn obligation. tsince the date, of the Presidents s
 statement the banking departments oi nearly all the states have expressed ap- | proval of memb ership in the federal re- serve system on the part of the banks under their supervision, and I recall witt much satisfaction your wn indorse-
 ment of the system which was given | several months ago. I have noted with much satisfaction your own indorse.
 private sources that the banks in Ala. l bama have never been in better shape
 than they are today, and that their re. serve position is expectionally strong 1 With my best wishes for their con tinued success during the new year, ane with the hope and belief that their bus. I mess will be conducted, not only witt profit to themselves, but to the advant
 age of the communities which they serv, and to the substantial assistance of the government, 1 am. sincerely yours,
 | wv F. G. HARDING."a