Music Trade Review
Issue: 1918 Vol. 66 N. 5 - Page 9
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
FEBRUARY 2,
THE MUSIC TRADE REVIEW
1918
9
FEDERAL RESERVE BOARD URGES USE OF ACCEPTANCES
In Annual Report Board Takes Strong Stand Against Use of Long Time Notes—Must Observe
Sound Banking Principles—Federal Reserve Notes Now Form Bulk of Currency in Circulation
WASHINGTON, D. C, January 28.—War finance
and the effect of wartime industrial and com-
mercial activities on banking are treated in the
annual report of the Federal Reserve Board
transmitted to Congress last week. The report
calls attention to changes in the legislation af-
fecting the reserve system and to the fact that
in the last year the banking medium of the
country has passed from a situation where na-
tional bank notes constituted the bulk of our
money to one where Federal Reserve notes
form the money of the United States. There
are now in circulation Federal Reserve notes
to the amount of $1,348,954,075, while the volume
of national bank notes in circulation is only
$698,322,099.
Prominence is given by the board to con-
stantly recurring effort to increase acceptances
where contracts for successive renewals make
the transaction practically a time loan, and so
reduce the liquid resources of banks. On this
matter the report says:
"The most urgent appeal has been that the
board permit Federal Reserve Banks to dis-
count notes which have been placed upon the
market under an agreement between the bor-
rowers and their bankers providing for a con-
siderable number of successive renewals, the
advances having been made to the borrowers
for a definite term of years. Had the board
permitted such paper to be rediscounted, Fed-
eral Reserve Banks would in a short time have
been burdened with paper which the makers
did not expect to liquidate at maturity. The
discount of paper based upon such an agree-
ment for repeated renewals is not consistent
with the underlying principles of the Federal
Reserve act, and the board had no hesitation
in stating that it did not regard paper subject
to such agreements as a proper investment for
Federal Reserve Banks.
"Other propositions of a similar character
were submitted to the board, and their sig-
nificance is that there is pressure on the part
of commercial and manufacturing enterprises
to gain access to the rediscount facilities of
the Federal Reserve Banks and use the sys-
tem to supply funds which should be provided by
the securities market.
CHARACTER
'Admirable Quality; Acknowledged Reputation"
—(Standard Dictionary)
PIANOS
Manufactured by
Smith, Barnes
= and
Strohber Co.
have for 33 years
justified their right
to be called
Pianos of Character
FACTORIES
North Milwaukee, Wis.
Chicago, 111.
OFFICE
1872 Clybourn Avenue
Chicago, 111.
"The policy of the board has invariably been
to interpret and apply the law in accordance
with its manifest intent and underlying prin-
ciples, with the end in view of safeguarding
and maintaining the liquid character of the as-
sets of the Federal Reserve Banks. This duty
has become imperative because of the fact that
the entire reserves of the member banks, so
far as based upon legal requirements, are now,
by the act of June 21, 1917, carried on the books
of the Federal Reserve Banks. Upon these
banks and upon the Federal Reserve Board,
therefore, falls the responsibility for the main-'
tenance of a liquid condition, and upon them
will justly fall censure for any unauthorized
use of these reserve funds, which are held un-
der a trusteeship of the highest character.
"Therefore, in no circumstances can the
board admit the eligibility of paper, by whefth-
soevef made, which in its essential character
fails to conform to sound banking principles
and to the provisions of the Federal Reserve
act. In making this statement of its attitude
the board does not ignore or overlook the
serious problems which now confront pritate
enterprises in providing for their financial re-
quirements both as -io new money and ma-
turing obligations. Reference has already
been made to the position of the savings banks
and investment institutions in general. Un-
doubtedly some effective measure, not so much
of actual relief as of organization to afford re-
lief if required, is desirable, and if made avail-
able will be of great benefit to the banking sit-
uation."
CHICAGO OPERA CO. SCORES IN N. Y.
Work of Artists, Orchestra and Chorus of High
Standard—Mason & Hamlin Piano Used
The Eastern headquarters of the Mason &
Hamlin Co., 313 Fifth avenue, New York, have
been busy the past fortnight supplying Mason
& Hamlin pianos for the members of the Chi-
cago Opera Co., which opened its New York
season at the Lexington Theatre last week. The
Mason & Hamlin piano has been the official
piano for this opera company for many years,
and it has won the enthusiastic endorsement and
praise of the individual members of this organi-
zation and the opera company's executives.
; The Mason & Hamlin Co. is gratified to share
in -the phenomenal success which is being
achieved by the Chicago Opera Co. in its first
New York appearance, for the foremost critics
in the musical world have been unanimous in re-
ferring to the brief New York season of this
opera company as an epoch-making event in the
history of local operatic music.
The .success of the Chicago Opera Co.'s New
»York-seasoft was assured after the first per-
formance, and as each opera has been presented,
the'preStige and accomplishments of this com-
pany have become more firmly established in the
minds of New York's music lovers and mu-
sicians. Although the individual members of
this company were heralded throughout the
West as artists of exceptional talent and ability,
New York was hardly prepared for such a re-
markable assemblage of artists.
The Chicago Opera Co. has taken. New York
by storm, and it is safe to predict that its
next appearance in this metropolis will call for
a more extended season.
Victrola XVIi$215
Victrola XVI, electric, $270
Mahogany or oak
Other styles $20 to $400
Victor
Supremacy
The supremacy of the
Victrola is as evident in
the prosperity of Victor
retailers as in the great
m u s i c a l accomplish-
ments of the instrument
itself.
Victor s u p r e m a c y
means retailer success.
Victor Talking Machine Co.
Camden, N. J., U. S. A.
Berliner Gramophone Co., Montreal,
Canadian Wholesalers
" V i c t r o l a " i, the Registered Trade-mark of
the Victor TalIcing Machine Company designating
the products of thii Company only.
W a r n i n g : The use of the word VictroU
upon or in the promotion or tale of any other
talking machine or Phonograph products is mislead-
ing and illegal.
I m p o r t a n t N o t i c e . Victor Records and
Victor Machines are scientifically co-ordinated
and synchronized by our special processes of
manufacture, and their use, one with the other, is
absolutely essential to a perfect Victor reproduction
DICKINSON PLACES BIG ORDER
Giles Dickinson, a member of the firm of the
Weeks & Dickinson Co., Binghamton, N. Y., was
a caller this week at the executive offices of
Hardman, Peck & Co., New York. Mr. Dick-
inson spoke optimistically of the business sit-
uation up-State and placed a good-sized order for
Hardman grands, Autotones and uprights.
HIS MASTERS VOICE"
FEBRUARY 2,
THE MUSIC TRADE REVIEW
1918
9
FEDERAL RESERVE BOARD URGES USE OF ACCEPTANCES
In Annual Report Board Takes Strong Stand Against Use of Long Time Notes—Must Observe
Sound Banking Principles—Federal Reserve Notes Now Form Bulk of Currency in Circulation
WASHINGTON, D. C, January 28.—War finance
and the effect of wartime industrial and com-
mercial activities on banking are treated in the
annual report of the Federal Reserve Board
transmitted to Congress last week. The report
calls attention to changes in the legislation af-
fecting the reserve system and to the fact that
in the last year the banking medium of the
country has passed from a situation where na-
tional bank notes constituted the bulk of our
money to one where Federal Reserve notes
form the money of the United States. There
are now in circulation Federal Reserve notes
to the amount of $1,348,954,075, while the volume
of national bank notes in circulation is only
$698,322,099.
Prominence is given by the board to con-
stantly recurring effort to increase acceptances
where contracts for successive renewals make
the transaction practically a time loan, and so
reduce the liquid resources of banks. On this
matter the report says:
"The most urgent appeal has been that the
board permit Federal Reserve Banks to dis-
count notes which have been placed upon the
market under an agreement between the bor-
rowers and their bankers providing for a con-
siderable number of successive renewals, the
advances having been made to the borrowers
for a definite term of years. Had the board
permitted such paper to be rediscounted, Fed-
eral Reserve Banks would in a short time have
been burdened with paper which the makers
did not expect to liquidate at maturity. The
discount of paper based upon such an agree-
ment for repeated renewals is not consistent
with the underlying principles of the Federal
Reserve act, and the board had no hesitation
in stating that it did not regard paper subject
to such agreements as a proper investment for
Federal Reserve Banks.
"Other propositions of a similar character
were submitted to the board, and their sig-
nificance is that there is pressure on the part
of commercial and manufacturing enterprises
to gain access to the rediscount facilities of
the Federal Reserve Banks and use the sys-
tem to supply funds which should be provided by
the securities market.
CHARACTER
'Admirable Quality; Acknowledged Reputation"
—(Standard Dictionary)
PIANOS
Manufactured by
Smith, Barnes
= and
Strohber Co.
have for 33 years
justified their right
to be called
Pianos of Character
FACTORIES
North Milwaukee, Wis.
Chicago, 111.
OFFICE
1872 Clybourn Avenue
Chicago, 111.
"The policy of the board has invariably been
to interpret and apply the law in accordance
with its manifest intent and underlying prin-
ciples, with the end in view of safeguarding
and maintaining the liquid character of the as-
sets of the Federal Reserve Banks. This duty
has become imperative because of the fact that
the entire reserves of the member banks, so
far as based upon legal requirements, are now,
by the act of June 21, 1917, carried on the books
of the Federal Reserve Banks. Upon these
banks and upon the Federal Reserve Board,
therefore, falls the responsibility for the main-'
tenance of a liquid condition, and upon them
will justly fall censure for any unauthorized
use of these reserve funds, which are held un-
der a trusteeship of the highest character.
"Therefore, in no circumstances can the
board admit the eligibility of paper, by whefth-
soevef made, which in its essential character
fails to conform to sound banking principles
and to the provisions of the Federal Reserve
act. In making this statement of its attitude
the board does not ignore or overlook the
serious problems which now confront pritate
enterprises in providing for their financial re-
quirements both as -io new money and ma-
turing obligations. Reference has already
been made to the position of the savings banks
and investment institutions in general. Un-
doubtedly some effective measure, not so much
of actual relief as of organization to afford re-
lief if required, is desirable, and if made avail-
able will be of great benefit to the banking sit-
uation."
CHICAGO OPERA CO. SCORES IN N. Y.
Work of Artists, Orchestra and Chorus of High
Standard—Mason & Hamlin Piano Used
The Eastern headquarters of the Mason &
Hamlin Co., 313 Fifth avenue, New York, have
been busy the past fortnight supplying Mason
& Hamlin pianos for the members of the Chi-
cago Opera Co., which opened its New York
season at the Lexington Theatre last week. The
Mason & Hamlin piano has been the official
piano for this opera company for many years,
and it has won the enthusiastic endorsement and
praise of the individual members of this organi-
zation and the opera company's executives.
; The Mason & Hamlin Co. is gratified to share
in -the phenomenal success which is being
achieved by the Chicago Opera Co. in its first
New York appearance, for the foremost critics
in the musical world have been unanimous in re-
ferring to the brief New York season of this
opera company as an epoch-making event in the
history of local operatic music.
The .success of the Chicago Opera Co.'s New
»York-seasoft was assured after the first per-
formance, and as each opera has been presented,
the'preStige and accomplishments of this com-
pany have become more firmly established in the
minds of New York's music lovers and mu-
sicians. Although the individual members of
this company were heralded throughout the
West as artists of exceptional talent and ability,
New York was hardly prepared for such a re-
markable assemblage of artists.
The Chicago Opera Co. has taken. New York
by storm, and it is safe to predict that its
next appearance in this metropolis will call for
a more extended season.
Victrola XVIi$215
Victrola XVI, electric, $270
Mahogany or oak
Other styles $20 to $400
Victor
Supremacy
The supremacy of the
Victrola is as evident in
the prosperity of Victor
retailers as in the great
m u s i c a l accomplish-
ments of the instrument
itself.
Victor s u p r e m a c y
means retailer success.
Victor Talking Machine Co.
Camden, N. J., U. S. A.
Berliner Gramophone Co., Montreal,
Canadian Wholesalers
" V i c t r o l a " i, the Registered Trade-mark of
the Victor TalIcing Machine Company designating
the products of thii Company only.
W a r n i n g : The use of the word VictroU
upon or in the promotion or tale of any other
talking machine or Phonograph products is mislead-
ing and illegal.
I m p o r t a n t N o t i c e . Victor Records and
Victor Machines are scientifically co-ordinated
and synchronized by our special processes of
manufacture, and their use, one with the other, is
absolutely essential to a perfect Victor reproduction
DICKINSON PLACES BIG ORDER
Giles Dickinson, a member of the firm of the
Weeks & Dickinson Co., Binghamton, N. Y., was
a caller this week at the executive offices of
Hardman, Peck & Co., New York. Mr. Dick-
inson spoke optimistically of the business sit-
uation up-State and placed a good-sized order for
Hardman grands, Autotones and uprights.
HIS MASTERS VOICE"
Future scanning projects are planned by the International Arcade Museum Library (IAML).