Show t c t ir REVIEW OF THE WEEK I IN FINANCE AND TR TRADE DE Ira C. C Tichenor Tichenor- By i i. i HE E cv event nt of the past week eck so far as this section of the great intermountain region directly is concerned was as the formal niI ning nig g of Salt Lakes Lake's branch of the Twelfth district federal re- re bank of San Francisco 1 I The installation of this institution here is a signal recognition d I lie importance of this city as one of the financial centers of the theu u try and as the metropolis of an extensive and immensely I portion of the United States nt t In fact it constitutes a milestone that marks the material I II gress ress not only of Salt Lake and of the entire state of Utah but I I those portions of neighboring states affected by the new finan- finan I L I of things I O As the result of the installation of t the branch reserve bank I Salt It Lake becomes an integral part of the great federal reserve dein Jem with its membership c of if more than national banks I numerous state institutions and which form fonn the greatest and si- si substantial t t-l financial foundation of any government in th the fid tIde LIt I is true that while the Salt Lake bank members of the theral ral reserve system and thus directly associated with the Twelfth I 1 it t bank in San Francisco h have ve received the benefits accruing i ason ason of the successful operation of the system as a whole they e in turn as the result of their importance and proven stability a d just that much strength to the powerful and carefully adjusted Id e of financial machinery whose operations have won the admira- admira pf of the entire world ivorid and have placed the United States Slates in the i t 1 ranks as a monetary power Under the operations of a branch bank however the members etlie system in the newly created become to some ex- ex i separate entity although governed by the main bank of I district and at the same time their benefits materially increased r ref r i I Ir j I 1 J. J PREVIOUSLY pointed out the greatest benefit that will vill accrue to the member banks in the new as the thet of the installation of the branch bank in Salt Lake will be bed beed 1 feed ed d from the fact that they have been brought at least seventy- seventy nearer to Eastern and Middle Western customers and 4 bank members Clearings now are made through gh the branch instead of through the main bank at San Sm Francisco In some Fees rices ces these clearances now can be completed at least three days daysI I j I ar er r than formerly when the wails ails were used On occasions the theU U aph raph was resorted to but as a rule neither the mail nor the b. b proved a satisfactory means of completing transactions i A G In thee these days of regularity in the conduct of various G bf of business transactions a delay of a few hours often proves r o i hi nV At ron lIn r All 17 A I fl i 1 In r f f f fur U A I G J i I. I IW W t IV tb L It 1 iL t fc i s j if Y v viree iree Id days 1 means n when h n thousands al or Hh hundreds ded of f tl thousands 11 ds of ofFs f I Is s s are involved as occasionally sion ly is the case I 0 f Now V that the branch bank has begun operations and in m an manner time loss has become an unknown quantity so soB B e. e the banks of Salt Lake are concerned and has been reduced in the case casc of members in outside cities and towns Jt element of worry also has been eliminated to a great OTHER 0 BOTHER OTHER item of importance in connection with the Ue opera opera- I Ions ns ons of the thc new branch bank is the f fact ct that the institution 3 with deposits totaling approximately hile this sum is represented in part by credits an immense nt which previously was vas as sent by local banks and was held in faults of the main bank at San Francisco was returned from 4 9 st city and now rests in the strong box of f the Salt Lake lotion ution 4 This amount which represents a certain percentage of the lid iid and time deposits of member banks was absolutely safe I t. t pin in the hands of the parent institution hut but the fact that it will remain in this thi city is a source of psychological j I ito 2 the layman as well weIl as a visible financial anchor to the local J j I r 4 hc value of the branch bank it is declared by local bankers demonstrated in no uncertain manner during the campaign he floating of the third Liberty loan of just justn n ri Belief in this is strengthened by the fact that during dining the theng ng ng of the last Liberty loan more than S in cred credos s ts transferred from Salt Lake to San Francisco within a few 1 l' l to to meet payments on the Liberty bonds alone a THOUGH the present federal reserve banking system has hasi 15 i b been en in existence only about four years succeeding one that ie antiquated wholly inadequate and practically nil as to coStion co- co cot I t Stion only after strenuous opposition in some sonic quarters in that a time Ihne it has become an immense and potential piece of malty mar mary ma ma- at c t ry r running without the slightest jar and doing many times work with greater ease and less danger to itself and to the then's i i h hi ns n's financial structure as a whole than was experienced under i I J ous conditions io o Naturally the result was as that those in charge of this a piece of machinery were loth to make chan changes es even to the thet I If jt t f of creating branch banks as authorized by raw law Because se of this situation it is greatly to the credit of the Salt I tc t I. I bankers who conceived the idea of a branch bank for this I c rid jid to those who carried out the idea to a successful conclusion I j l they were able to place before the deciding powers the I I f a arguments to convince them of the necessity of the move d I Il It P I t ONG NG the arguments a advanced d in a petition formally presented l r 9 o the governor of the Twelfth federal feder l reserve bank was this I I I Inaccessibility o of the banks of the great territory served by fi Jake City to the bank of San Francisco is one of the most I It t reasons for the establishment of a bank at Salt Lake City of the Salt Salt Lake banks anks has been that that the country I h j jal t al banks being acquainted with the methods in vo vogue ue in San j I 7 f fI isco are calling upon them for accommodations which they is I u receive from the federal reserve bank Salt Lake banks are 1 I I l filled at this time to borrow on their own paper the money j i j I Iced ced red to fo country banks as of course since they do not use the theon I on nn 4 44 l I REVIEW OF WEEK IN FINANCE AND TRADE I I Continued from page e 1 1 federal reserve bank the country banks make no effort to meet the requirements and therefore the paper they send is not The establishment of oJ a branch bank at Salt Lake City would reduce the amount of float now existing in the federal reserve bank to a very great degree Practically every day there are re received received received re- re at Salt alt Lake City through the bank at San Francisco checks amounting to many thousands of dollars the great bulk of which reached the federal reserve bank from Eastern points In the collection collection col cot lection of these checks at least two seventy-two hours are added by reason of their having passed through Salt Lake to San Francisco and then returned to Salt Lake for collection FTER calling attention to the fact that the federal reserve act AFTER A provides for the establishment of branch banks when deemed necessary the petition declared in addition I Within the Twelfth federal re reserve erve district are seven of the so called public land slates states Colorado Colorado Montana New Mexico and 1 Wyoming only being outside that jurisdiction The Tile public land states of this nation embrace within their area over 97 per cent of the total remaining public lands of the United States the States the greatest timber areas of North America are within their borders Indeed they conta contain 11 per cent of the total United tates forest reserve area I They have the flie largest coal measures their measures their iron deposits I Iare are beyond calculation while their wealth of mineral resources in silver copper gold lead zinc and aluminum cannot even be approximated approximated ap ap- ap- ap salt soda sulphur and potash are here in untold quantities quantities quan quan- titles these states are among the greatest of the oil producing centers centers centers cen cen- they are among the heaviest wheat producers and on their plains and in their mountains are raised the beef and mutton that contribute largely to the nations nation's supply of meat while they are the largest wood producing states in the Union Industrially and agriculturally the opportunities for growth and devel development in the Twelfth federal reserve district are limitless The economic necessity for exploitation of these resources is made imperative by the requirements of the war and hence the demand pressing 11 t rp HE arguments proved conclusive and Salt Lake now occupies rr JL L the same relative position to the the Twelfth district reserve bank and to the great system as a whole as do Spokane Seattle and Portland the three cities in the Twelfth district previously to be granted branch bank accommodations By the installation of the branch bank here Salt Lake really becomes a cog in the great financial machinery of the nation and anti I with resources measured by the billions of dollars In this connection connection connection con con- and as a demonstration of the immensity of the r sources resources of Ithe j I i I I the federal banks and of tl the e financial institutions of the United I States as a whole it is appropriate to quote from an article in this this this' column early in the present year when the announcement first I Iwas was made that the he proposed new issues of treasury certificates of od I I indebtedness would bear an interest rate of 4 A 40 y per cent I I When it is considered that the resources of the national banks of the United States November 20 last were more than t 00 I and the resources of the state banks and trust companies I about the middle of last year totaled approximately 2 t I and that these resources have increased since th that t time there I appeared to be no danger of their ability to subscribe to about 3 of treasury certificates even at 4 per cent as a preliminary preliminary preliminary pre pre- to the floating of the next Liberty loan I According to a Washington statement the banking power of I Ithe the world in 1890 1390 was estimated at This This figure I Iwas was considered immense at i the he e time but the fact that the banking power of the United States alone now is two and a half times the banking power of the world only a little more than a a. quarter of a century ago demonstrates th the great financial progress America has been making I I c As CAs the leading financial nation which position now is conI conceded conceded con con- j I ceded to the United States it would seem that there could not be bethe bethe bethe I the shadow of a doubt as to the response response which the tile banks would make to the request of the government for a temporary loan even had the rate remained at 4 per cent Of this magnificent financial system Salt Lake now can consider consider consider con con- sider itself a part even to a greater extent than and using the wc words of a member bank in welcoming the new reserve branch The coming of this bank marks an important epoch in the financial history of this entire section and the people of Utah and the intermountain intermountain intermountain inter- inter mountain West Vest are to to tobe be congratulated on the event |