South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-12-25
s. B. BANKS WON 7
RUSH INTO PLAN
Local institutions Will Consider
Carefully Before Joining
Central ReSerVe-CitizenS'
National May Be First.

omcers- OF south Bends national
banks wednesday were unanimous in
the statement that the question
whether their banks viii enter the
new central reserve system provided
I by the new currency bill, is a matter
which will be decided only after "A
more thorough study OF the provi-
sions OF the amended bill.
At least one Of the banks, the Citi-
zens' National. is practically certain
10 enter the system as the officers
feel the bill as amended in the SEN
bate has been formed TO overcome OBJ
Elections which may have been enter
led TO the original draft.
There have been so many amend
lments and changes in the bill during
fits tendency IN congress that IL Is
tdificult TO know exactly the provl-
bsions OF the new measure" said My
Iron Campbell Of the South Bend Ma
ltional bank, one OF the city's best
Iposted men in finance. our bank
will probably take no action toward
kentering the system until we have OBJ
Itained a draft Of the law"
| The banks are allowed at the out
kside a year in which 10 decide wheth-
Der they will enter the system at the
lend Of which time, II they fail TO
ljoin, they must surrender their char
tiers as national banks.
/ A few Indiana banks have already
ksurrendered their charters and ap-
Eplied for licenses to operate as state
! institutions. The foremost among
fChicagO bankers have approved the
lnew measure and signihed their in
ltention Of joining the system. The
South Bend bankers reserve their de-
Icision until more definite information
us obtained.
Banks Lose Interest
Discussing the features Of the sur
lrency bill MyrOn Campbell said
TUESDAY: 81 believe the clause
which viii work the greatest hard
ship on our banks is that which re-
quires that we lose the interest on
Ave per cent of our total deposits by
kdepositing this amount in the reserve.
j do not think the requirement that
banks subscribe six per cent of their
capital in stock OF the central re-
serve association will prove as I'M
popular as the former provision.
In the case OF a bank having, say
$50. 600 in deposits. which is forced
10 deposit five per cent OF this
amount now drawing interest at six
per cent. in a place where il yields
absolutely no income, II means q
dead loss Of $1,000 a year TO the
bank. AS the amount of deposits in
creases the extent of the loss in
creases."
g. W. Harrison. cashier Of the Citi-
zens' National bank. said the ques-
ton OF Joining the system would
probably come up at the meeting OF
the directors Tuesday, Jan Is. Al
though no definite action had been
taken. Mr. Harrison said he believed
IL practically certain the bank would
enter the system.
"I believe most of the features
which aroused objections have been
eliminated through the amendments
10 the bill" said ne.
Practically the same corporation
operates the Citizens Loan and Trust
Co. a state institution. a fact which
81 is supposed would be an additional
reason for the retention OF the char
ter of the national bank.
At the Merchants National and
First National the other two banks
IN South Bend affected by the meas
ure il was said that the question was
one for decision by the directorates
and no opinions were ventured as 70
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