New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-28
$5SO,OOO,OOO TO
Be FREED FOR USE
Controller Of Currency
Details Benefit Await
ing Commerce.
100000 CASH
ALONE RELEASED
Business Fears Doomed, II Is
Believed, by Flood of Re
serves Soon Available.
lrrom rh. rrIhune Iareau.l

/ serves S0On hNdlidUlt'
from The Tribune Bureau
! Washington, Oct. 27.--Thc flood %
reserves that will be released by tHe
/ establishment % the Federal Reserve
system and made available for the com
ncrcial needs Of the country on NO
vember Is. the date when the sysfm
/ becomes operative, will be $5sO'Ooo,oOV,
according TO detailed estimate MADE
by the Controller Of the Currency
John SHELTON Williams, to-day.
OF this total $464,9l9,076 represents
the difference in the reserve require
ments Of the federal reserve act and
the requirements Of the present ma
tional bank law. The remainder,
Sl16,00000O. is the amount now held
by the national banks in excess o. me
reserve requirements Of the present
law. The estimates arc based upon inc
deposits Of national banAB a. shown II
the last report 10 the Controller o!
the Currency dated September -. l9l4.
The total cash alone that viii be &c
leased by the new law. which ID nov
held i'm the vaults OF tho national
banks OF the system. viii amount 70
100000 tn. remainder, generally
based upon deposits and other re-
sources.
As presented in the summary issued
by the Controller of the Currency there
il now in the vaults or the national
banks seO2.0OO,0OO. The federal re-
serve act requires that OF this amount
only s3s4O00O00 bc held In the vaults
of the banks. S943.000,0 600 with the fed
AZ
either with the reserve banks or in the
vaults Of the member bsnLs, d total
of S717000,O00, making available for
immediate use on November Is cash 10
the amount Of $lS5.000,000.
In the banks Of the New York re-
serve district there was on September
II cash to the amount Of 100000. 900.
The total cash reserve required by the
reserve act will be only s244.000.00o,
leaving the remainder. 1858, 000, 900 cree
for commercial purposes.
The total reserves held BY the banks
Of the twelve reserve districts on Sep
tember IL we're S1.57b, 100000. o. this
amount $l,460,000 is required under the
present law. The requirements o; .he
reserve act will be only 1896, ZOO,
leaving an excess OF S5S0000 600. o.
this latter sum sos 100000 Will be re-
leased in the Boston district. $4,000
600 in tho Ne7 York district and S70,-
UUO.QU0 IN the FhuGdelphla district, q
total IN tho New England end EasterL
States Of s206000,000.
Treasury officials we're undeIisbly
optimistic over the financial prospects
that are to be unfolded BY the cstab-
lishment Of the reserve system and the
release of the huge amount OF reserves
made possible by the concentration IL
the twelve reserve banks of the inan-
cial resources OF the country, nov
scattered among individual national
banks.
The release Of reserves Till 20 Far.
Il is believed, toward removing sppre-
hensior which now exists, and will en-
able manufacturers and others 20 take
advantage Of the slow rising tide o.
business.
New York banks who are members OF
the reserve system yesterday received
from the Federal Reserve Board forma!
Motif cation that the first instalment or
their subscriptions to the capital stock
of the New York Bank will be due No
yember .. The letter, which was signed
by Governor Hamlin OF the reserve
board and II. Parker Willis. its secre-
tary. called on the banks to make the
payment, amounting TO ! per cent o.
each banks capital and surplus, in gold
or gold certificates, Is provided Tor IN
the law.
As tho New York State member banks
have already subscribed to 2 capital OF
800 G2l sos. the amount 70 be paid III
on November il $3,4S6,933. The local
banks are instructed 10 make their
payments direct TO the Federal Reserve
| Bank OF New York. The directors Of
this institution will hold their regular
weekly meeting to-day 20 consider plans
Tor opening. Some announcement re-
garding the choice Of officers in add
lion to those already elected may be
made
u was stated on high authority yea
,erdav that the New York Reserve
Bank will have Oh hand when il opens
Tor business a reserve fund OF approx
irnAteiy 100000 900 and that il will
begin Immediately the rediscount op-
crations permitted under the reserve
act. 4 large portion of these, II is be
Gcved. viii be the redscounting OF
commercial paper for member banks in
the South 10 aid them in financing the
cotton crop.
Il was also learned yesterday that
the committee which was appointed 70
select a permanent home FOR the New
York Reserve Bank il tsyorsbly consid-
cring the banking quarters Of Hsrvey
/ Fisk 6 Sons. at No. 60 Cedar 81. In
this event the banking firm would move
from their ground floor Offices higher
up in the same building
Local banks continue to retire the
emergency currency taken out soon
after The outbreak of the war. The
amount retired az the Sub-Tressury
yesterday was S2,o00.O0O, making the