Lincoln County times. (Jerome, Idaho) 1911-1919, 1914-01-08

The amount of reserve required
from every bank under the new law,
and the place where it must be kept.
are as follows:
Country banks-Total reserve requir-
ed, IL per cent. of demand deposits
and 5 per cent. of time deposits. Five
twelfths must be held in the banks
own vaults for two years n four
twelfths after that. For the first year
t~wo-twelfths must be kept in the re-
gional bank, increasing one-twelfth
each six months thereafter until 1t
reaches five-twelfths of the total re-
serve. For three years the unallotted
part Of the reserve may be kept In
the banks of reserve cities. After
that lime 1t must be kept either In
the country banks and vaults or In the
regional reserve bank.
Reserve city banks-Total reserve
required, Is per cent. of demand I'M
8 per cent Of time deposits. Six-if-
teenths must be kept In the banks
ffteenths after that time. Three-ff-
teenths must be kept in the regional
reserve bank for the first year, In
creasing one-1fteenth every six
months thereafter until 1t reaches six
6fteenths. For three years the In
allotted portion OF tho reserve may be
kept in other banks, in its own
vaults. or in the regional bank; after
that time In one Of the latter two
places.
Central reserve city banks New
York, Chicago and st. Louis)-Total
reserve required. IS per cent. of de-
mand and 5 per cent of time depos-
its. Seven-eighteenths IN the regional
reserve banks and the remaining five
eighteenths in either place the bank
may choose.
Regional Reserve Banks
These immense funds of reserves
from member banks" together with
government moneys. will make up the
deposits of the regional reserve banks
Each of these banks will be admins
tered by a board of nine directors. six
Of whom will be elected by the banks
ard three appointed by the federal re
serve board.
The regional reserve banks may re
district-that Is, buy at a discount
from its member banks-"prime com
mercial paper" when the mempel
banks desire to convert these assets
into money.
Character Of Paper.
The exact terms of this impo~san
provision as to the character of pape
upon which the regional reserve bank
may furnish cash are as follows:
Upon the Endorsement of any of 1T
member banks, with a waiver Of de
mand notice and protest by sucl
banks, and federal (regionaD reserv'
bank may discount notes, drafts, I'M
bills of exchange arising out Of act
ual commercial transactions; that is
notes, drafts, and bills of exchange is
sued or drawn for agricultural, indus
trial or commercial purposes. or tn
proceeds of which have been used, o
are to be used, for such %pnrnoses, tn
federal reserve board to have tn
right to determine or define the chal
acter Of the paper thus eligible 70
discount, within tbs meaning Of thi
act.
Eligible for Discount.
Nothing in this act contained sps,
be construed to prohibit such notel
drafts and bills of exchange, secure
by staple agricultural products, or OIL
er goods, wares, or merchandise, froI
being eligible for such discount; bu
such definition shall not include note
drafts, or bills covering merely inves
ments or issued or drawn for tn
purpose of carrying or trading /
stocks, bonds or other investment 8,
cur:ties, except bonds and notes Of tn
government o. the United States.
Notes, drafts and bills admitted t
discount under the terms OF the par
I graph must have a maturity at tn
time Of discount of not more than