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The Commoner
VOL-. 14, NO. 7
Bankini
tral reserve cities. So it happens
that tho large deposits of the rail
ways, thoir collections from the south
ern peoplo, as also from the western
people, are sent on largely to those
hanks. The same la true of the tele
graph and telephone companies, the
lifo and fire insurance companies and
of many of the larger manufacturing
-- ,...uuu. .. intiwiiUUlB aim iiiau-
ufacturers of North Carolina pay their
freight bills to the railways. The
money goes largol. and promptly to
Now York, and is lent out and used
thero in stock market operations, or
as tho director of the hanks, who
aro also often tho directors of the
roads and other corporations, may
uiu . ui course, tnoro is no law
which provides fo.' the carrying of
tho resorves and bank balances of
railways and 1 dustrial corporations
in tho contra' reserve cities where the
national bankn of fhn pnnntm. i...n
also been accustomed to keep their
reserves.
When North Carolina needs money
to movo tho cotton crop her banks
must call on Now York for money
which should bo in their own vaults
for th RETURN of money paid in
hero in freight 111 , Insurance prem
iums and otherwiso; and your banks
80motiniOS think MmmaolimB l..n.. ir
thoy can bo allowed the uso of any
part of it. Lot us illustrate moro
COncisolv: In I?nhnmnv ln 4-1.
tlonnl banks of New York and Chi
(Continued from page 11.) Now, wo do not propose to use
in tho great banks in tho three cen-' violence to force disintegration and
ucvvuuantttuuu, iu uu uuiuiiife wnu
a jolt and a jerk. It is understood
clearly that to rush headlong and at
full speed over an evil or an obstacle
uittj vause ueruuuieui or jarring, un
comfortable and bad for passengers.
The thought, or plan, as I understand
It, is to invite decentralization, to en
courage it, to give opportunity for it,
tf TTIalra Innnt nnlf nr.tv.riwn m.. t ...
sible, to remove the influences which
uiaw wa lew centers tne money tnat
iS naid flllf tn the lnrnnntmni- nnil
deposited in the local banks.
Real science is the exploration of
tho secrets and hidden forces of na
ture, and intelligent application of
them when they have been discov
ered. This new system has been
drawn with infinite pains and care on
mui luuicipie me exploration, dis
covery and application of the natural
laws of trade and human nature
tho conditions in our own country,
iu uui xeiuuons wiui other coun-
11 1C3.
Of course, absolutely free banking
s as impossible as it would be to
leave to each individual tho regula
tion of his own conduct according to
his own impulses or conclusions. You
would realize this more clearly than
you do if you could be behind the
scenes in tho comptroller's office.
YOU WOUlfl Ipnrn thif m. i
business is ono of tho safest as well
as ono of tho most worthy in the
world when conducted with i
rowers who imnT " L" "? b?rS
them,-on "bouShtpera'nd loans
secured by clock-exchange and other
collateral; this is, of course in addi
tion to hundreds of millions which
lbMankB woro lending their own
customers on stock-exchango and
other similar securities.
min!on0Hni?P0'itS, of one thousand
million dollars placeu with tho na
tional banks of New York and Chl
SE?J'y othor1baB d trust com
2!SJ5 ar? SxclfU8lvo. should be ob
served, of tho huge balances sent on
WW 111BII1 I1V riQ tKtint .J . . .' -..w UU B jrnPB n ,
T,nrrMnno',; . uoluuu Kat cor- nana examiner tn ;: "'ea e
;ii7U --"u. .rywhere, but' but the nieBidnf "" ugam soon;
hospitable. " not at all
ws&mm&ms&m
mmi wmm mmm
nuucy act every
business man t' chango his account
from the bank with- which he- has
kept it, or any business man or bank
to suspend dealings with tho bank- or
banks in tho central reserve or re
serve cities with which they have in
the past been doing business. It
does offer to banks freedom of choice.
It says to the banker that ho can fol
low his preferences, sentiments or
habit in selecting the sources of his
borrowing; and the member banker
of any federal reservo district may
feel freo and peaceful and at ease
when he knows that he has in his
nnrtfnlln nntpn rlrnfta and hllln nf nv-
change arising out of actual commer
cial transactions which ho can con-
vuit iulo money at his lecierai reserve
bank with greater, ease and prompt
ness than it has sometimes been pos
sible for him to withdraw his cash
balances from his reserve agents, and
almost with as much ease as it has
ever been possible to draw on credit
balances with any correspondent. He
is not dependent on the whims or
fortunes of any other bank. He need
not shiver at tho prospect of abund
ant Orons fnr fnnn Vtn. mntr I. ..
1- -" xwui mo iiiaj uui uuvu
uiauiu me tunas wim wmen to
meet demands for moving them. He
will know that if ho needs money to
accommodate the bank's customers he
can, as a matter of right, call on his
federal reservo bank.
Secretary McAdoo last summer
met with admirable foresight and
wisdom the annual crop-moving
scare by putting the resources of the
u6"" v.ioa&ui,y at me service of the
farmers and bankers of the country,
just when there were evidences of a
purpose to make money scarce and
high and to bring on trouble. The
country is under endless obligations
for that, but we cannot depend on
x..vxiib u.iwuys m command of the
treasury department a man so cour
ageous, so ready, so careful of the
public needs, and so careless of the
wishes of a selfish money power
Among other benefits, tho ' new
currency law, by its direct system of
clearances, will release and mv
.. . -- -vw wttu UlUH
7 """ "i bw i one anu uiu- compliance to the laws and rop-nir,
Ill ClrculaMnti In fhrv u ... t. ,, ,
.-S: ZZZZn
violon ;., n ' ",,. ""L7 S? rtl ? ftnd Stu M oath of office at
Xjhoso to si ow n Zl Vu " it"co."Lnon- I venture tho
So!f fGS f, th,S K" S toS ent company ex SSSdVeoST dce.7 wuf Vel S aST Take
doIi aJS .I)laco(1 wIth th0 New York not know what thlJ h! course do available for purposes of trad JnS
and Chicago national banks by the do and not tc do On 1, t0 coraierce hundred of millions of
banks and trust companies through- a member of congres now 2?T??n 5ollars' which- under the old system
mUlion iTfn'X: le8S itUr eIehty-five tory, complained I TeraonllK t t- haVe been tIed UP in tedfouTpr
S:'iJ"Ty ,laa ' being comptroller of the euSSSff a "es,ses ,of collection. It will also savfi
- Muii. i.i i i in nnn irn i j ninw .r" j - j v& lii .! rii tnr trn ,i .
cnmnnni Ii." ."""" u"u trust y" ui excessive loan mnA ... :," "w -o aim u mercnants and himl
xumiuiuua ui Liin n ror mnt. i-w mni. . . . ----- "u.uu uv t.iir noeo mnn ..
the balance of tho money sent to th loans far h wuWa,s nresident
boon loaned to' "o.c 'omors "S camoSerb?hnBk 'J? tI,e , that
SSL. ISTT?'' ls t0 W. Tbo?- oomptrX'S"'0?.''' tho
law. and ?opo?ted thntan1, son-In:
mootlngs wore hold i ' '"'''K't"'-
o breakfast tabln " """-nine at
was another bani U,ShfI?w'
cashier and nrMiS. , which the
a meoUng of thn 5?' r.e'usoa t0 ca"
dollars eanh f.We56.5ntitled to ten
tendpd. The riirw y moeting at
bank examiL i?3?!? -Ur?ed the
m - " vu i;iii i nrvnH
controlled iariv i T ffe'.,.?ut ?? President w " " 80n.i
As vn irnnw ..7 " uiB uuies. "oapmauio. ""v an
SSvsW-s ar?UsVaSr "-'3
tho money you had entrusted to I shall nJ!. lttt tho knowledge M.nt
,J5 '" J Z2JS. ntra,. a'n'auS"'", !? fpeae
,T "uauumi resources and feel ouito uu; Vr makes him
CnX?Ur',y' ra. .coc-?fat.on odf potent "?? " Voft nnancS
ness men eenarniiv nm .nn Z
doHars which they are" now'pay g
directly and indirectly, for thfcol-
'on tonts?dfoCci'ttr!' ChekS and Chocta
oxplai to you how tho now method
Stt '" tranaa!t! aomestic
to1?1 'l, distrlt, embracing tho
JSf ." North and South Carolina
A cotton mil. a Columbia S r
Sto Cofuml?! Pian,d Us diecic
of coll to Jh 1 ?nk fr a shiPent
neld0avf?a,lC0Pan7 at Blue-
at Bluefield forwards this ch ckto
its correspondent in Richmond m
correspondent sands the Seek' to
own correspondent ia Columhio . itS
makes the collectic i f rom f h !fc,who
bia bank and then dra a ShSJm"
New York for New w a ? n
which it remits tn mZ exchange,
Richmond Tank thenf nd' The
the Bluefield bank of ?n ntIfles
of the Item. The collec ion"011
change charges on En? d ex"
banks amount usually to ftC0Untry
tenth to one-fmVSP'S to from one-
or possibly mora. n"Vno.Per cent,
federal reaervo bank ehall receive on
'deposit fpar-from-member banks
checks and drafts drawn
upon any of its depositors." That
manna 4-tiol- t-X. ni o .. - -"Ut
YU mfc tue oiueneia bank re
ceiving the check on tho Columbia
S. C, bank mails it to the federal re!
serve bank at Richmond. The federal
reserve bank at Richmond thereupon
charges tho Columbia-bank with the
amount of the check, credits the
?iS?IldfiI,a?k wLth fhe proceeds and
notifies the two banks accordingly.
,Theufederal reserve act also pro
vides that each federal reserve bank
shall receive at par, and credit ac-
uurumgiy, an checks and drafts
drawn upon any of its member banks
from every other federal reserve
bank; that all checks and drafts
drawn by any depositor that is to
say, by any member bank, on any
federal .reserve bank, shall be re
ceived and credited at par by every
other federal reserve bank. This
means that the checks of the mem
ber banks in the country towns
throughout these five states are
worth their .full face value, without
deduction for exchange or collection
charges, to every other member bank
wiai. cue amount or each check
may bo cashed at par immediately,
without following the devious and
round-about courses now observed in
the collection of checks. Virtually
every bank in the Fifth district is
only one night distant from Rich
mond, and a check mailed one after
noon in the most distant portions of
the district should reach Richmond
the following day in time to be in
cluded in that day's operations of tho
federal reserve bank.
Let us now consider another aspect
of the new law: Under the old na
tional bank act, a national bank with
a capital of, say, $200,000, deposits
of, say, $1,500,000, bills receivable
amounting to $1,200,000, and $300,
000 reserve, would only be permitted
Delays
Sometimes
Expensive
Business or social en
gagementsjust a few
minutes for lunch can't
wait for service. What
can be had quickly?
Order
Post
Toasties
with fresh berries or fruit
and cream. They will be
served immediately, they
are nourishing and taste
mighty good, too.
Sold by Grocer
Everywhere!