Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-12-29
ANNOUNCE PLAN OF
FEDERALRESERvE CITIES.
The Organization Committee
Points Way WherebyCities
May Be Heard When APP
plying for Banks.

Washington, Dec. 2s.-The Federal
Reserve Bank Organization committee
Saturday supplemented it's plant for
locating Federal Reserve cities with
an unofficial announcement pointing
the way for all cities to present their
claims for banks.
Before the committee, consisting of
Sec. of the Treasury McAdoo and Sec.
of Agriculture Houston, starts on It's
tour of the country 1t will advise
Clearing House Associations and
Boards of Trade in cities desiring Re-
serve banks when and where they can
be heard. The committee will sug-
gest that representatives of such or
CARNATIONS be supplied with all the
facts each city wishes to produce in
its favor.
Only IA cities in addition to Wash
ington will be visited, but it was the
understanding tonight that any city
and any community can be heard at
some point on the committees trip.
1t was said tonight that neither Cab
met officer on the commission had de-
termined upon the number of reserve
districts and cities. The trip to be
taken is almost as much for this pur
pose as for actually locating the cities
and defining the districts.
Officials of the treasury Saturday
praised the decision of the committee
to work out the district limits and
cities by public hearings. They said
| that already scores of kilograms had
| been received asking for a hearing in
/ Washington on the supposition that
! In h. Dr.
| holding hearings in many cities the
committee hopes to avoid trouble and
save time.
The committee took its first formal
i step Saturday when it made official
announcement of the procedure to be
/ followed by banks which wish to
make legal application for membership
/ in the new system
In accordance with this announce
ment every bank desiring member
ship shall within go days, through its
board Of directors. pass a resolution
certifying its desire to enter the sys-
tenn. The resolution is to be signed
/ by the cashier of the bank and for
warded to the committee.
/ 1t provides for the full acceptance of
the terms of the law and expresses
the intention of the board to subscribe
on behalf of the bank for stock in the
proper Federal Reserve Bank.
The fling of this form will be the
/ first step of a bank toward member
ship. It will have nothing further to
do toward coming into the system un-
til the organization committee an
nounces the geographical limits of its
district and the city where its reserve
bank is to be located.
Within 80 days after such announce
ment a bank must take the second
step that twill bind it to the Federal
system. 1t must begin to put up its
money fer stock in the district Fed
eral Reserve Bank. Each bank enter
ing must subscribe to stock in the
/ Federal Banl, equal to 6 per cent. of
its paid-up capital and surplus, but
not all of this sum is to be paid at
once.
Informal applications from banks
continued to reach the treasury today
but officials were surprised when they
received kilograms from several indi-
viduals who wished to subscribe for
stock in reserve banks. One applicant
wanted to get $4,000 worth of stock;
another wanted $4,000 worth and an
other $500. The law provides in certain
contingencies that individuals may
subscribe, but if the banks continue TO
come in little stock will be left when
their time limit has expired.
Sec. McAdoo's illness was diagnosed
Saturday as grippe, but Surg. Gen.
Rupert Blue of the Public Health Ser
vice, who is attending him, declared
that his patient was much better.
Five New England banks Saturday
applied for membership in the Federal
Reserve banking system: Lynn Ma
tional Bank. Wareham National Bank,
hoth of Massachusetts; Portland Ma
tional Bank, Portland, Me-; National
Excbanpe Bank and National Bank OF
Commerce. both of Providence.