Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-09-20

, Washington, D. c., Sept. 1.-THE
federal reserve banks have completed
the taking over of the functions of the
sub-treasuries of the United States
and the independent treasury has be-
come a thing of the past. The federal
reserve act authorizes the federal re-
serve banks to act as fiscal agents
of the United States and they have
been able to handle this business so
thoroughly that the abolition of the
sub-treasuries has been made possible.
The sub-treasuries were created IN
1916 following the long series of diff
culties which Andrew Jackson and
other officials of the early government
had with the Bank of the United
States. They were branches OF the
treasury at Washington and were de-
signed to handle government business
in various parts of the country. The
sub-treasuries were located at strategic
points geographically.
With the growth of the banking bus
mess in the United States it was found
that the system set up in 1916 did not
answer the demands of modern com
merce. The federal reserve banks
which are quasi-governmental organi-
cations, did meet this demand, so the
change was made.
These twelve great banks are direct
agents of the government and, with
their % branches, render a service
which is declared to be superior to
that possible through the old sub-treas-
uries.
Under a general power furnished by
the secretary of the treasury, the fed
eral reserve banks may accept govern
ment and hold them on de-
post, pay checks and warrants of the
treasury, redeem bond and note cou-
pons and conduct a general banking
agency business for the federal treas
ury. Any government check or war
rant, no matter where drawn, may be
presented to any federal reserve bank
or any n of the branches for pay
ment and payment will be made as
readily as if the check were presented
at the treasury of the United States.
War Business in Bonds
The federal reserve banks got deep
~ into this government banking bus
mess during the war. As fiscal agents,
they handled a large part Of all the
selling of the Liberty bonds and Vic
tory notes. This service was not con-
fined to the actual banking alone. The
federal reserve banks were the head
quarters for the publicity campaigns
which assisted in placing the securi-
ties.
The magnitude Of this business is
SHOWN by the figures. During the war
the federal reserve banks handled the
SUBSCRIPTIONS and payments, distrib-
uted the bonds and kept the accounts
of an aggregate of S21 900, 900, 900 rep
resented by more than SO, 900 900 sub
scriptions. During and since the war.
the federal reserve banks also han
died for the treasury the short term
securities known as treasury certifi-
Gates of indebtedness. The sale and
distribution of $36. 100000 of these
were handled and the subsequent re-
demption of $50, 000, 900 900.
There is a vast amount of detail in
performing this sort of work and
If the task had fallen on the sub-treas-
ury officials and bankers agree that il
the task had fallen on the old sub
treasures they would have been
swRmped.
The Federal Reserve bank of New
York is the greatest of II banks. In
fact In many respects it is as great
as all the other IL. put together in
that it does about half of the federal
reserve banking of the entire country.
An indication of the bulk of the federal
reserve bank operations is furnished
by some of the figures for the New
YORK bank. For the year 1921, that
bank handled government checks Ia
the amount of 81, 63S.000 900. Thu
u federal reserve banks, their %
branches and the treasury and federal
reserve board at Washington are all