The independent. [volume] (Lincoln, Neb.) 1902-1907, 1905-02-16

ting abalances." or cash deposits" to
be substituted for the difference.
Second: That, notwithstanding the
reduced requirement as to cash on
hand, not a dollar of the difference
may be loaned or used at the place,
town or city, where each bank is To-
Gated, thus everywhere denying the
same to local industry and enterprise.
Third: That even the two hundred
and ninety banks in thirty-five "other
reserve cities" as above, though them
selves reserve agents for country
banks are permitted to deposit in
banks of New York, Chicago or st.
Louis, one-half of their own Is per
cent reserves.
over one-half of all reserves outside of
three central reserve cities, to be con-
centrated as deposits, and three
fourths of such deposits to be loaned.
Fifth: That S19,073, 100, being the to-
tai deposited as per cent redemption
funds in the United States treasury, is
by law included as part OF reserves
against deposits, though totally uns
available therefor.
Boston and Philadelphia national
banks, these not being central re-
serve Cities" constantly deposit about
One-half of their reserves in New York
banks. Such deposits were on March
%, 1904:
ByBostOn national banks $40 ,026, 305.79
BY Philadelphia national
banks $22 ,871 ,080.53
All national banks must make sworn
reports of their condition at least five
times year when called upon by the
comptroller of the currency. The vary
ing percentages of reserves required,
and permiSsions to substitute deposits
with banks in reserve cities in place
of lawful money on hand, necessitated
classification by the comptroller as fol-
lows:
The central reserve cities, March, %,
1904, had sixty banks.
These are the only banks compelled
to keep in lawful money on hand Is
per cent of their deposits. Under the
permissions of the law, banks of these
three cities have become reserve
agents" or depositaries for large pro-
portion of the lawful money reserves,
required to be withheld from local loan
or use by 5,172 banks throughout the
United States.
Such reserve deposits are treated by
them as ordinary deposits, three
fourths of which may be and are
loaned.
Other reserve cities, March %, 1904,
had 29O banks. vs.
Under section 5,192 these banks are
reserve agents or depositaries for a |
large portion of the Is per cent re-
serves of 1882 country banks; not
withstanding which, under section s.
1876, they may deposit with banks in |
the above central reserve cities one
half of their own Is per cent reserves,
which they must withhold from local
loan or use.
Country banks, March 50, 1904, num-
bered 1882.
Under this head are included banks |
of the following cities of 100000 to |
350, 900 population, viz: Buffalo, New
ark, N. j., Jersey City, Providence,
Rochester, Toledo, Allegheny, Worces-
ter, Syracuse, New Haven, Paterson,
Fall River, Memphis and Scranton.
Also banks of ia cities below 100000
population and over $4,000, and banks
OF all smaller cities and localities.
These are all required to withhold,
from local loan or use, Is per cent Of |
their deposits, as reserves, of which |
three-fifthS or 9 per cent (SectiOn 1892
are permitted to consist CT deposits or
balances" with reserve agents in
any of the thirty-eight reserve cities.
Reserve deposits are made to obtain
interest. paid thereon by banks in re-
serve cities.
Up to 1898 such deposits did not ex-
coed one hundred millions of dollars.
Their great increase since then is