The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-04-03
BANK STARTS WITH
100000 CAPITAL
Law Fixes Minimum, but Rich
mond District Capital Will
Exceed 100000.
HOW DIRECTORS ARE NAMED
Nine Members on Board, Six Of
Whom Are Elected by
Member Banks.

The Richmond Federal Reserve Bank,
when formally organized, must start
business with a capital OF not less than
100000. although bankers believe
that the actual capital at the begin
ming VIII be In the neighborhood OF
| S6,o00o00 Having been designated bv
the organization committee. the first
business move is TO find a proper home
for an institution which will he con-
Quoted on tremendous scale. and
which Will employ a large number of
people Early in the campaign the
local committee was advised that a
suitable home could be provided with
out difficulty.
Under the Federal reserve act the
United States was 10 be divided into
districts-not less than eight and not
more than twelve. The district TO be
served by Richmond includes some of
the most prosperous territory In the
country.
A Dig Bank for BnnIss.
While the law is now and intricate
so far rs tho lay mind goes, it is not
difficult of understanding by men who
are trained in the technical profession
OF banking. Very often the question
has been asked If the Richmond Fed
era! Reserve Bank viii receive de-
rosits from the public. II will not. 1t
will be Il big bank for banks. Each
stock sum equal To per cent of
its capital and surplus. There Will
he shares to be sold 10 the public
though no person or corporation can
tuy more than $4,000 OF stock Once
on its feet, the reserve bank will paw
dividends. and the act assumes that
there viii be a largo surplus dividend
for tho Treasury of the United States
If the law operates as successfully as
It's advocates contend. the financial con-
ditions III all sections will he improved
to Il marvellous extent. Every national
tank must become II member: by fail
ing 10 do so its charter is surrendered
All State banks with a capital of $500
600 may become members. although it
is not required that they do so Mem
bership by state banks and all trust
companies organized under a State
charter is optional
Much in the act which relates TO the
establishment OF q Federal reserve bank
Is not OF especial interest to the pub
lie. The public knows that II is to he
created by law for certain specific pur-
poses. and that it will be governed by
u board OF directors to be- named in the
manner prescribed by law.
Conducted by I1onrd of Directors.
The Richmond Federal Reserve Bank
VIII be conducted under the supervision
and control OF a board OF directors
This board must perform the duties
usually pertaining to the Office of di-
rectors of banking institutions. IT is
subject to the provisions or the law
and the orders OF the Federal Reserve
Board. 1t must extend to each memb Der
bank such discounts. advnncetnents and
accommodations as may be safely and
reasonably made, with due regard for
the claimS-and demands OF other mem
Der banks.
The hoard of directors, holding Of
.tce for three years. consists OF nine
members and Is divided into three
classes. known rs A. Il and c. Glass a
Is TO consist OF three members to be
chosen by and DC representatives OF the
stockholding banks, Glass Il is to con-
Continued On Fourth Pago)