Historical Newspapers of South Carolina

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FEDERAL BESERVE SYSTEM. MOBILISATION OF NATION'S (.OLD HEM'JIVF OKDKHKD. kVrwident Wilson Calls L'pon All I llg lbk? NoiwMcmbcr Hank* ami Trust Com panic* to Join Federal Hcsorvc Ny*trui mikI 1H> Their share Toward Winning War. Waehlnfrton. Oct. 1 r.. ? President Wllavn ton'.aht sounded a call for the mobilisation of all the nation's gold reserve* under the supervision of the federal reserve board. In a statement made public through the board the president called upon all eligible non-member Htate banks and trust companies to join the fed? eral reserve system without further delay that they may "contribute their share" to the consolidated fold re? serve of the country and aid more ef? fectively i i i Mgorouv prosecution and successful termination of the war " Scores of such Institutions have flocked to the system within the past three weeks, among them some of the largest trust companies of New York. Philadelphia and other cities. The government to the federal reserve ayotesa has lacked only a tlnal Impell? ing force to assume the proportions of a landslide. Within less than three weeks, resources of such instl tut Ions In tho system have risen from $1.266.660,000 to more than $2,600, "no.mm Liberty loan financing, the result? ant activity In the money market*, the ?coot of tne government's huge finan? cial transactions upon the bond mar? kets) and the stock exchanges of tho country fcave made it Imperative, in tha view of the administration, for the federal reserve board to control not a major fraction of the gold reserve of the country, but the entire amount. The rscent embargo on gold export has made It highly desirable that this control be acquired as speedily as possible. With the board Inactive, dally con? trol of the country's huge store of gold, st present more than $3,000, #?6,000, watching every avenue through which it may be lessened, and vigilant In Its supervision of the country's banking activities, officials believe that the financial position of the country may be rendered as near? ly Impregnable as human skill can make It. At present the board controls the activities of institutes representing only one-half of tho country's total banking resources. The latest reports of tho comptroller of the currency place? at several millions above $16, 000.000.000 the resources of the banks within the system. Since that report was Issued, however, noarly $1,500, 000,006 In resources have been add ea through the acquisition of new members. There are. however, between 8,000 ard 6.060 eligible banks and trust companies, with resource* estimated at from $12,000,000,000 to $16.000, ?(?0.600 whose activities are entirely beyond the control of the federal government, being governed only by Htate laws. The president addressed hlmsel ' l>> tin <?? m- t: ntlotiH His statement follows: "The White House: ' It is msnlfestly Imperative that there shruld be a complete mobilisa? tion of the banking reserves of the United Suites All who are familiar with nnaacisi operations must appre? ciate the Importance of developing to the maximum our banking power and of providing financial machinery ade? quate for masting the very great financial requirements imposed upou our country by reason of the war. ' A vigor us prosecution and satis? factory termination of the war will depend In no amall degree upon tho ability of the government not only to finance Itself, but also to aid the gov ernment* associated with In Ifea war. which must be kept supplied with munitions, fuel, food and sup? plies of til kinds. 'The banking problem Involved is ons which concerns all banks alike. It* aolution does not depend upon the national banks alone nor upon thv Htate banks. The bur b n and Ihs privilege must be shared by every banking institution In tlm country. Tha tm|K>rtant functions of the fed? eral reatrvs banks in the sale of tic government's securities, in receiving Baal tr i inferring the billions of d<? isrs Involved. In supplying credit fa .111 tie* and In protecting the pssj of the countrv. have become no I i miliar to all tb.it I ..m mu r it is un? necessary to dwell upon or expound them. "The extent to wbb h our countrv an w.thntand the finami.'l strains which we must be prepared will (!?? pend very iarg?dv spaa Ihs strength and staying power of the federal re? serve bank*. The federal rsssrvi it the only constructive tin until leg? islation which have ? vn hi I which was broad enough to isajQfn? modate it the same time banks oper? ating under powers grunt.m| by tin general government arid bunks wh<> < h *rters are granted i.y the respective THE MST OF THE WAR. HMMMVOT nations spend? ing $160,000,000 a DAY, United state* Spending One-Fourth of Amount, Closely Followed by Eng? land?Germfany's War ilntcrvst Taken Ten Per Ocnt of Nation's To? tal income. New York, Oct. 16.?The war is costing the belligerent nations one hundred and sixty million dollars daily, according to estimates made by the Mechanic'* and Metals Na? tional Bank. It is estimated that the United States are bearing one-fourth of this etaggerlng output. The United states are spending most. England second. Germany third. The interest on the public debt is ten per cent of the normal income of the German people. This country's interest ac? count la less than one-half of one per cent, of the nation's Income. Fif * [ty-three million men are engaged in It he war. LA FOLLETTK BLOCKS INVESTI? GATION. Ikmiands Copy of Charges and Right to Summon Witnesses. Washington, Oct. 16.?When the senato committee investigating Sena? tor La Follette's St. Paul speech began its hearing. Senator La Folette pre? sented a formal demand that the committee present a copy of the charges and that he be permitted *.o summon and cross examine witnesses. The committee went Into executive session to consider the demands. In a letter presenting his demands Sena? tor La Follette said he believed every statement to be accurate and de ma ids to know who challenges them. Detroit. Oct. 16.?Henry Ford sub scribed for five million In Liberty bonds and the Ford Motor Company for a like amount. Mr. Ford said the United States in declaring war did "the best thing that ever happened for the world." States. The unification of our bank? ing system and the complete mobiU-1 satlon of reserves are among the fundamental priclples of the act. "The State banking institutions for some reason have until recently seemed inclined to hold aloof. Con? gress a few months ago prescribed very generous terms for the admission of the State banks into the federal reserve system which have removed tho objections heretofore raised by State banks when considering mem? bership. As* tho law now stands, il leaves member State banks and trust companies practicaly undisturbed in the exercise of all the banking pow? ers conferred upon them by the States. The law provides also in definite terms the conditions upon which any State bank or trust company may withdraw from the system. "Many of the largest State banks a id trust companies are now becom? ing members, realizing that to wir. the war we must conserve all tho physical, financial and moral re Houtces of our country, that our fin? ances must rest on the firmest pos? sible foundation, and that they must be adequately and comoletely conserv? ed so a* to respond Instantly to every legitimate demand. How can this necessary condition be brought about and bo made permanently effective better than by tho concentration of the banking strength of our country In tho federal reserve system? "May I not ihorefore urge upon the officers and directors of all non-mem her State banks and trust companiej which have the required amount of capital and surplus to make them elig? ible for membership, to unite with the federal reserve system now and there? by contribute their share to the con solidatcd gold reserves of the country? I feel sure that as member banks they will aid to a ?reater degree than is possible otherwise In promoting the national welfare, and that at the same time by securing for themwelves the advantages offered by tho federal re? serve system they will best sorrs their own interest and the Interest of their customers. I believe that co? operation on the part of the banks |l a patriotic duty at this time, and that membership in the federal reserve sys? tem is I distinct and significant evi? dence of patriotism. "There are probably 1,000 or 9,000 State hanks and trust Companies I eligible for membership which have imt yet united with the system. This* institutions have it in their power to "hi enormously to the resources of the federal rearer ve banks, thereby broadening and strengthening the foundation upon which our whole financial structure must rest Permit me to UK" thot every bank Officer and t.ank director owes ? solemn obliga? tion to the eountfg which I am sure they wish to discharge. Ii therefore, wish again to Impress upon mom Imy solemn conviction that the\ ran best measure up to then duties and ?esponsihiiitien through membership in the federal reserve system, "Woodroe ?Tlh on." SERIOUS FOB RUSSIA. GERMAN MBHTJRE OF GULF OF RIGA GIVES Til KM BASEL From It Military Operations Can Be Launched Aguinst Petrograd and VlcliUty. With tho entrance of flermans into the Gulf of Riga a serious situation is created for the Russians. Russian naval authorities do not believe the campaign will he extended this fall because of the late season. With the preponderance of German naval strength in the Baltic there is little to prevent them from making the Gulf of Riga virtually a German lake and solidifymg it for a strong naval base from which military operations could be successfully launched. The situation on the other fronts is virtually unchanged, according to of? ficial reports. The Germans are laying stress on the heavy British bombardment in Flanders. Weather and mud are the big factors there. Fighting on the French front is confined also most entirely to artil? lery. The British casualty list is decreas? ing. Last week's total was fourteen thousand, compared with seventeen thousand tho week previous and twenty-one thousand the week before that. Petrograd admits that German ac? tivities on Oesel Island are develop? ing successfully. Berlin reports that the Germans have the Russians iso? lated on Savord Peninsula where they are offering desperate resistance. Two more islands have been occupied by the Germans. HUNDRED THOUSAND IN BONOS Colonel Leroy Springs Makes Ills Second Big Subscription to Liberty Loan. I (Lancaster, Oct. 15.?Col. Leroy Springs started off the second Liberty loan campaign in Lancaster County today with a subscription of $100, 000. This sum was his subscription to the first Liberty loan. The people here are subscribing liberally and it is thought that Lancaster will easily raise its apportionment. SHIP YARDS CONSOLIDATED. Bethlehem Corporations Plan Is to Expedite Work. New York, Oct. 15.?Consolidation of the operation of tho various ship? building yards controlled by the Beth? lehem Steel Corporation under a new corporation known as tho Bethlehem' Steel Corporation. Limited, in order to coordinate and expedite work on the increased volume of government shipbuilding demands', was announced here today. The new company will he capitaliz? ed at $12.500,000, all tho stock to be owned by the Bethlehem Steel Cor? poration or its subsidiaries, with the exception of director's qualifying shares. The president will be E. G. Grace and the vice president, In charge of sales und operation, will be J. W. Powell, now president of the Fore River Ship Building Corporation. Quincy, Mass., Included in the merger. Other companies involved are the Union Iron Work Company und the Union Iron Works Dry Dock C?m pany, of San Francisco; Harlan Hol lingHWorth Corporation, Wilmington, Del.; Samel L. Mooro & Sons Corpor? ation, Elizabeth, N. J., and the ship yard at Sparrow Points. Md., now op? erated by the Bcthlehom Steel Com? pany. "The demands of the government on the facilities of shipbuilding plants will make it essential that all dupli? cations of engineering and .similar overheud work shall be avoided so far as possible, und the proposed consoli? dation is expected, through the re? sulting standardization and the cen? tralization of management, to in? crease the production of the yards af? fected?a result of vital Importance in this time of Intense demand for expe? dition in the building of ships," the It eel corporation announcement said. "The new corporation will he formed under the laws of Delaware. All con? tracts for ships hereafter taken by Bethlehem Interests." the announce? ment said, "will he taken In the name of the new corporation. "There will be no radical depar? ture at this time from tin present op? erating methods at these plants," it was announced. H. 11. Snider, vice president of the Bethlehem Steel Company, will be Viet president. In charge of Hnanclng of the new corporations and steel companies as well. <>\E BILLION SUBSCRIBED. People are Beginning to Wake up on Liberty Bonds. Washington, <>?t. 16.?-Treasury of* flclals declared this morning that un? less nil signs fall liberty loan subscrip? tions will reach a billon by tonight. They expeel the two billion nyirk by the end of the week, j *m>m COTTON SEED CONFERENCE. MARK PROTEST IN CONFERENCE TO HOOVER'S PLAN, Food Administrator Gives Assurances Tlint No Price Fixing is Under Con? templation. Washington, Oct. 15.?Representa? tives of cotton seed producers of the South, in conference here today with the food administration, asked that no move be made towards imposing restrictive regulations calculated to cause a drop in the market price. Al? though assurances were reiterated by Herbert C. Hoover that a price for the pioduct would not be fixed, the dele? gates are contesting a proposed plan to bring the industry under federal supervision by means of a licensing system. The cotton teed interests are pre? dicating their appeal against a re? duction in price on the drop of $20 a ton in the market price cause d by the recent exclusion of the product from the New York exchange, and on the greatly increased production costs. In conference with food administra? tion officials the delegates said regu? lation of the trade is unnecessary at this time because of the prevailing low price. They maintained that the marke price of the product, which al J ways has been based on the prices of packers products, is at a relatively depressed point. Conferences will be resumed tomor? row and it is- expected that Mr. Hoov? er will issue a statement outlining in general form the plans of the food administration for control of the in? dustry. Among the representatives at to? day's conference were J. J. Brown, commissioner of agriculture of Geor? gia; L. B. Jackson, director of the Georgia bureau of markets; J. H. Mills, president of the Georgia Farm? ers' Union; James A. Wade, commis? sioner of agriculture of Alabama; John H. Page, commissioner of agri? culture of Arkansas; Harry D. Wilson, commissioner of agriculture of I*ou isiana, and W. A. Graham, commis? sioner of agriculture of North Caro? lina. HELD FOR SCOTT'S DEATH, * J. W. Helms Accused by Inquest Jury at Columbia. Columbia, Oct. 15.?The coroner's jury which investigated today the kill? ing of C. A. Scott, coroner for Rich land County, several miles below Co? lumbia, about midnight last night, held J. W. Helms, a rural policeman, companion of the dead man at the time of his death, for the shooting. Coroner Scott, according to the testi? mony, was shot twice, under the right arm, which caused his death, and on the right knee. The first shot went clean through his body, coming out at the left side. The cause of the shooting was not divulged at the inquest. Tom IHake ly, who runs a store near the scene of the killing, testified that both Scott and Helms had spent some time prior to the tragedy drinking in his store and that both were considerably un? der the influence of whiskey just be? fore the shooting. There were no eye? witnesses other than Helms, who, wit? nesses said, acknowledged bring the fatal shots. Another Interesting bit of testi? mony was that the body of Scott was moved shortly after the killing and placed upon Its back, and a revolver was found by Its side. When found, said witnesses, the body had a 3 2 oalibre pistol lying within the circle of one of the arms, with the butt to? ward the body. LARGK STEAMER TORPEDOED. London, Oct. 15.?Two hundred and fifty lives were lost when the steamer Medie was torpedoed Septem? ber 23, In the Western Mediterranean, says a Router's dispatch from Paris. The torpedo exploded the munitions in the ship's cargo, There were more than 500 passengers on board the steamer, including soldiers. Kansas City, Oct. 16.?More than half of the Kansas City stock yards, the second largest in the country, was destroyed by fire today. It was estimated after the blaze was under control that several thousand cattle had been burned. Some estimates are as high as 10,000. The liberated cat? tle are roaming the streets of the city. Washington, Oct. 16.?The govern? ment's latest offer of certificates of Indebtedness of three hundred mil? lion at four per cent, has been heavi? ly over-subscribed. Paris. Oct. IB.?-The French gov? ernment has authorised subscriptions in France to the liberty loan, by this instance waives- the application of the general decrees against sub script Ions to foreign loans u> Vranre, and also the interdiction of the exportation of money. Thla privilege is limited to American sol diers, BUTCHERY OF ARMENIANS. WOMEN AND OEHLDRBN KILLED IN COLD BLOOD BY TL BKS. Ten Thousand Bodies Counted in One Small Territory?A Tale of Horror Not Surpassed in History. New York, Oct. 9.?Burial alive of babies In trenches with the bodies of their mothers, who had been slaugh? tered or allowed to perish from ex? posure, was practiced by the Turks in their work of exterminating the Ar? menians, it was declared here today by the Rev. Henry H. Riggs, mis? sionary of the American Board of Commissioners for Foreign Missions to Harput, Turkey, who recently came back to this country. A treneh was dug beside a camp of Armenian wo? men, he said, and as they met death the survivors were forced to drag their bodies, to it and bury them. "Tho gendarmes said they could not take care of the babies that were left behind so many of those were buried with their mothers," Dr. Riggs said. "When I visited this camp I fre? quently saw Turks wandering about among the Armenians picking out 1 pretty girls and little children to take away to their homes. Some mothers told us that they had themselves thrown their babies into Euphrates river rather than allow them to be taken to Moslem homes. Many more threw themselves into the river to es? cape a bondage of shame worse than death. "About fifteen miles from Harput is a lake hidden from sight with many ravines about it. We were told that I the Armenian exiles were being killed and left in these ravines. Two Amer? icans investigated and brought back photographs and actual facts. They saw in a twenty mile ride 10,000 hu? man bodies, most of them killed by bayonet. With a few exceptions they were women and children and the mangled condition of their bodies showed the horrible fate that has been theirs." The story of the deportation of the Armenians of Harput is one of "per? fidy, violence and murder," Dr. Riggs went on, adding, "It is nearer to the truth to say the Turkish govern? ment undertook the extinction of the Armenian population." After the is? sue of an edict for all Armenians to go to Mesopotamia, he said, there came the arrest of all the men of standing. "They were sent out on the road tied together In groups of two to five," he said, "driven and beaten by the gend? armes. Of the first party of 800, one young man survived to tell the story of what happened. The party was taken into a ravine and ordered to sit down, he told me. Then the gend? armes climbed up on the surrounding rocks and fired with their rilles into the crowd of bound prisoners as long as they showed signs of life. "The man who told mo the story succeeded in getting his knife and cut? ting himself loose. As he made his dash for liberty he was followed by a volley of shots but got away unscath? ed. All other men of that and similar parties were ruthlessly butchered. "The women and children were then started on tho road toward Mes? opotamia in companies of two or three thousand. By indirect routes they were forced to wander about un? til the summer heat and disease wast? ed away tho majority. No transpor? tation was provided. I yaw one old man, who had traveled 200 miles, start out to go tho remaining 250 miles carrying on his back his pack of quilts and clothes and on top of that his aged, palsied wife, who could not walk. "Often the routes chosen took the people over waterless deserts where thousands perished from thirst. I passed through such a region where thousands of bleached skeletons each side the way told the story of a water? less journey across the plains in Au? gust. "The people who passed through Harput from the north usually spent two or three days- in camp within sight of my home. The sights we saw there can never be forgotten. They were absolutely without shelter, day or night, from heat or cold. The air was unspeakably foul from dead bodies lying near. As we approach? ed the women and children came around us like hungry wolves, all re? straint lost In the one desire for a piece of bread. "The sick and dying lay around under the blazing sun with no one to care for them, waiting for the end. One place 1 saw a row of twelve dead women and children who had been lying in the shade of trees. With them was one little baby still alive. The shade had shifted and the burning August sun had fallen on them and killed them. A long trench was dug beside the tield where these people were encamped. The people them s< lves were obliged to dig and till it. As soon as one died she was dragged to the trnch." in January, r.?K., Dr. Riggs said. I here were I8?,000 deported Armen? ians- in Mesopotamia, while in May, COMMERCE COMMISSION WILL HEAR COMPLAINTS OF RAIL? ROADS. Shippers an 1 All Others Interested Can Attend Session in Washington on Wednesday. Washington, Oct. 13.?Eastern rail? roads, seeking relief from conditions which their executives assert are rapidly approaching the point where I they can nc longer operate with pro lit, indicated today the form their ef? forts will assume in a letter to the In? terstate commerce commission, ask? ing for a conference to consider rates not included in the advance allowed by the decision in the 15 per cent, rato advance case last June. Indications are that the railroads have in mind filing applications for in? creased raves on a large number of commodities not already raised, if it should develop at the conference that the applications might meet with any measure of success. The commission, replying to the re? quest for 'a short informal confer? ence," notified the roads that it would he glad to hear them at "a public ses? sion" next Wednesday afternoon. Tho railroad executives' letter, sent from New York yesterday, was made pub? lic by the commission today. The commission's decision to hold a public session will give the shippers and all others interested opportunity to bo present and state their views. In denying the railorads* petition for a general 15 per cent, raise In rates the commission in its decision last June dismissed the proceedings without prejudice to their renewal at any time the necessity for an advance in rates could be shown. At the same time the commission granted Eastern roads, hardest hit of all by the car shortage and congestion of last winter advances in class rates which the rail ( roads estimate approximately 5 per cent. It Is thought hardly likely that these rates would be increased again although the reference by the railroad executive to "possibly other matters germane to secure all the results orig? inally asxed for" is regarded as suf? ficiently general to include such an' increase. Commission officials are in? clined to believe that the roads may ask for a long list of specific rate ad? vances, e r possibly another general I rate increase. GERMAN SAILORS MUTINY. Refused to Go Aboard Submarines] and Tlirew Officers into the Sea. Amsterdam, Oct. 17.?A mutiny among German sailors at Ostend, where they refused to go aboard sub? marines is reported by Belgisch Dag blad. The newspaper says the offi? cers were thrown into the sea and thirty munitineers were removed handcuf ed to Bruges. RUSSIAN WARSHIP SUNK. PetroRTad Reports Result of Naval Battle In Gulf of Riga. Petrograd, Oct. 18.?The Russian hattlesh p Slava was sunk in a naval battle ir the Gulf of Riga, the war of? fice annaunces. The Slava was hit several times be? low the water line. Nearly all mem? bers of the crew were saved by Rus? sian torpedo boats. 1317, the most careful investigation showed only 1 12,000 survivors, more than tr ree-quarters having perished from famine, pestilence and massacre in fifteen months. "The only bright feature of this terrible picture is the help that has actually reached a fraction of thesr people through relief funds from America's ever ready generosity," Dr Riggs f-aid. "In Harput we were able to give daily rations of bread to near? ly 5,000 widows and orphans. I.' more money bad come there wero 20.000 within reach equally in need. Upon the rupture of diplomatic rela ? tions, :he Turkish government con ? flseatec our food supplies and many o! these people perished of hunger." Since then, however. Dr. Riggs con - tinued, arrangements have been mado to continue the relief work through neutra agents who are disbursing tho funds and supplies gathered through the American Committee for Armen? ian and Syrian Relief In New Yorl: City. The question of saving tho remnant of the Armenian race, ho said, cm be solved only by American generosity, "The Armenian men arc dead, hu said, and the women have been crushed and cannot long survive the terrible experiences through which they have passed. But there are 400,. 000 orphan children, most of whom ar?> begging their bread today. The hope of the future is in gathering to? gether these remnants and savine; them for the seed of the future Ar? menian race. These children look to us today. If they can be fed and housed and educated for the next ten years hey can constitute the leading progressive element in the life of S new Turkey as their fathers did i\ the old."