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Show NEW CURRENCY SYSTEM STARTED Federal Reserve Banks in Twelve Districts Open Business Busi-ness Under New Regime. 7,571 MEMBER BANKS New Banking System Starts at Opportune Time War Situation to Te3t Value. Washington. Nov. If,. Federal reserve re-serve banks in each of the twelve districts dis-tricts were ready for the launching today of the nation's new currency system. Every step that the reserve re-serve board thought necessary for the first great change in the country's coun-try's mode of banking in the last fifty years had been taken. While directors or the several banks had only three weeks, in which to perfect per-fect their organizations, they had promptly resjiondod to Secretary Mc-Adoo'B Mc-Adoo'B suggestion that they take up their work today. The regional banks which will serve as centers to provide for the commercial requirements of the country coun-try have been established in New York, Boston. Philadelphia. Cleveland. Chicago. Minneapolis St Louis. Kansas Kan-sas City. Atlanta, Richmond. Dallas and San Francisco. Their operntion.i for the next few months will consist largely of the redlscouniing of notes, drafts and bills of exchange. Later their field will be extended to permit per-mit them to exercise remaining functions func-tions defined by tbe currency law. In the new system are 7,571 mem-her mem-her banks, with an authorized capital capi-tal placed at $10i'.. 759.600. One-sixth of that amount has been called In and placed in their vaults. Cash reserves in the twelve regional banks is estimated es-timated at nearly $250,000,000 drawn under the currency law from present reserve board agents of the member banks'. Members of the federal reserve board felt today they had established the system just when conditions presented pre-sented excellent opportunity to test its value. Ability of the reserve banks to rediscount commercial pa- , per has been looked to as a means of providing financial machinery for the movement of crops and meeting ' general business needs. Asserting that the opening of the banks marked a new era in the hls- ; tory of business nnd finance in the United States, Secretarv BfcAdoo added: "It Is believed that they will put an end to the annual anxiety from which the country bos suffered for the past generation about Insufficient money and credit to move the crops each year and will give such stabiP-ty stabiP-ty to the banking business that the extreme fluctuations in interest rates and available credits which have char acterized banking in the past will be destroyed permanently" The chief attraction and value of the new system, according to its interpreters, in-terpreters, are to be found in the elasticity it will give to reeognized paper currency The federal reserve notes which probably will replace the familiar bank notes will be issued on commercial paper arising out of actual act-ual business transactions It. is designed de-signed that they will rise and fall In amount, according to the flow in th ! tide of business. They will be government gov-ernment obligations, having back of them a large gold reserve in the regional re-gional banks Reserve banks, through them are expected to aid member banks having good paper, but needing need-ing cash. Secretary Sends Conqratulaticns. The secretary sent the following ! telegram of congratulations to the federal reserve agent and goernor of each of the federal reserve banks: "Please accept my cordial congrat- ulations upon the opening of the fed-eral fed-eral reserve bank of your district and I my sincere commendation on the ef-i ef-i fective work you have done in pre-' pre-' paring the bank for business in the 1 short time allowed for the opening. I am sure that the federal reserve ' banks will serve a groat and benefi-1 benefi-1 cent purpose in the future of our country coun-try and I ;im sure that this department depart-ment and the federal reserve board may count on your loyal co-operation ; In the Important work and duties which have been confided to ou. My ' hearty good wishes for your success." Opening a Great Day. j Paul M Warburg, possibly the most experienced banker of the fed-' fed-' eral reserve board, today declared that November 16 might be consld-I consld-I ered the fourth of Jul) in the economic eco-nomic life of the I'nlted States, marking the foundation of the nation :i financial emancipation. , "The new banking system, wisely administered.' said Mr. Warburg. "will prove to be the means not of ; Inflation but of safety, independence and gradual, healthy, expansion. How-soon How-soon we may become a world power, equal in strength and independence.. to those on whom we have had to lean until now, will depend upon our ability to avail ourselves of the opportunity op-portunity now open to us. "We are starting out today ambitious ambi-tious of attaining this end, but we are still far removed from our goal With a spirit prevailing of unselfish moderation and mutual helpfulness, with careful planning and singleness of purpose, we are certain to overcome over-come the obstacles that still block our way both within and without |
