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Mass attack on the New York banks on purpose to draw out all money. Fear that

In some days of their bill will appear frozen, forced the peripheral Banks to remove the means deposited by them irrespective of, they required

Really in them or not. In those storehouses from them it was possible to whom to return

The means in time, frequently it appeared much more reserves, than in The periods not so a great demand of public for cash. To the New York banks

It was necessary to stop during such moments payments, and after them to the such

To measure have been compelled to resort and those peripheral banks, which and not

Could take away the money in due time.

In the conditions of system of branches this situation would differ at all that

The modulation of funds would be completely excluded from New York. However the considerable

The part of these funds would be simply translated by city branches and the main things

Offices of banks in peripheral branches, and banks would save thus

The control over the reserves. small size., when Any bank would be compelled to hold the monetary balances in any Place where it had no branch. The size of such balances represented Itself, except for cases, as a rule, It is improbable that banks would become thus

To deposit the means in other banks during the period, when pressure on

The monetary market accrued, branches would not aspire to withdraw without meditations from

The main office all available assets irrespective of requirement for them. Funds would concentrate there, where necessity for them for satisfaction Increasing demand of clients and prevention of a bank panic would be The sharpest.

Though many already then have come to a conclusion that the lion's share of problems could be

It is resolved through establishment of bank branches on the Canadian sample, it,

Nevertheless, was considered as politically improbable business. Thereof accent

Has moved on more practical problem: it was necessary to find in frameworks Existing system a regular way of more economical use Reserves during crisis.

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