The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-05-07
TREASURY READY
TO enforce ACT
Instructions Issued for Organ
1ation in Richmond and
Other Districts.
DESIGNATION OF BANKS
Certificate to Be Executed Groups
Arranged Ballots Ready for
Selection of Electors.
DESIGNATION OF BANKS

pedite the organizations of the-Federa
reserve banks with particular reference
to the method of election of so-called
Class A and Class directors.
II was announced that the COMMITTEES
not later than Saturday will designate
five banks In the Richmond district
| which district includes Washington, to
execute the organization certificate pro-
| vided for. TO facilitate the incorpora-
ton Of such banks the representatives
of the banks SO designated will be re-
quested to meet promptly in Richmond
so that the certificate which has been
j ecuted and filed with the Comptroller of
the Currency.
| When this has been done all subscrib-
ing banks under the committees inter-
probation. will be treated as member
banks. and the election Of electors and
the nomination of directors may be i'm
medisteIy proceeded with.
The organization committee will d.
vide the banks of the Richmond district
into three groups.
Group No. will contain approximately
one-third of the aggregate number Of
banks In the district and will be COM
ton.
Group No. will include approximately
one-third of the aggregate number of
banks in the district and will embrace
the banks having the next largest cap
italization.
Group No. 3 will include approximately
one-third of the aggregate number of
banks in the district. being composed OF
those having the smallest capitalize ton.
While, under the terms of the statute.
banks cannot be officially grouped until
. he har
ated. that is to say. until the organiza-
ton certificate has been filed with the
Comptroller OF the Currency. an analysis
has been made OF those banks which have
signified their intention to subscribe.
Subscriptions Due Tomorrow.
As all banks are required to send in
their subscriptions rot later than Friday.
II Is expected that the organization
certificate will be filed with the Comp
troller OF the Currency by several Fed
eral reserve banks Immediately there
after. and II is. of course. desirable
that Class A and Class B directors should
be regularly elected as soon thereafter
as possible, and the Glass c directors
appointed by the Federal Reserve Board.
Accordingly. II the member banks will
arrange TO hold meetings Of their direc-
tors promptly. after the Federal reserve
banks are Incorporated, for the purpose
of electing district reserve electors. and
nominating candidates for Class A and
Glass B directors. the organization of
the Federal reserve banks will be greatly
facilitated.
The manifest purpose of electing dis
trict reserve electors Is to obviate the
necessity Of converting the boards of
the various member banks In order to
vote on the nominees. and as no elector
should represent more than one bank it
Is suggested that each member bank
select one of its own officers or directors
to act in this capacity.
Under the Federal reserve act the or
ganization committee. prior to the selec- |
ton of Glass c directors. performs the
duties and has the authority of the |
Glass director who is chairman of the |
board of each Federal reserve bank.
Under the provisions of section g. d. |
rectors of Class A shall be cloSNh b. AMI !
be representative of the stochholding |
banks.
Directors of Class B shall. at the time |
OF their election. be actively engaged n |
their district in commerce, agriculture, !
or some othef industrial pursuit.
The elector does not select the 1o.ni- !
nees whose names are to be placed on the |
ballot for Glass 4 and Glass B director |
ships. but the sole duty of the elector is |
to vote on on the candidates after they |
have been nominated.
At the same meeting at which the dis |
trict reserve elector Is elected. each MEM
Der bank may. by its board of directors.
nominate for its respective group. one
candidate for Glass a rand one Candi-
date for Glass directors.
Candidates for Glass A should be resi-
dents of the district and should be rep
cot H.
They may be officers. directors. or stock
holders of any of the member banks To-
Gated in the district and need not neces-
CARLY be officers. directors. or stock
holders of any bank Of tae particular
group of banks placing them in nomina-
ton, or Of any other bank.
In like manner. directors of Glass Il
must he residents of the district and
must he engaged in commerce, agricul-
ture. or some other industrial pursuit.
IL any attorney, physician.
Of other professional man. Is placed in
1t must appear that such
nominee is also engaged in one of the
pursuits specified by the statute. Glass
B directors cannot be stockholders, Off
GERS, or directors in any bank.
Ballot Forms Arranged.
Forms will be mailed to each membert
tank for use in reporting to the organi-
zation committee (which. until the selec
ion of the chairman of the board of each
reserve bank by the Federal
Reserve Board. shall act in the place of
he chairman. the name Of the district
reserve elector. and the nominees Of
lass "A" and class B. directors
When these forms shall have been re-
'eived by the organization committee a
list will be prepared of all district re-
'erve electors. and mailed to each cleo
or in each district in compliance with
he statute. Il
form of ballot has also been pre-
jared which will show the candidate for
lass "A" and the candidate for class
b" directors of each group and this
'allot will be sent in due course to each
district reserve elector. in order that his
'ote may be cast in accordance with the
provisions of the statute.
Each district reserve elector will indi-
ate on this ballot his Iirst. second, and
bird choices for one director of claso I
A." and his first. second. and third
hoices for one director of class b"
The ballot furnished will show all NOM
nees of the group and the name of thel
ank nominating each candidate.
Each group will elect one class "A" 1
nd one class 81 director The cleo !
ors will therefore vote only on the NOM
nees of their own group. and not on
II the nominees of their district.
When these ballots have been received
y the organization committee, poll I
ill be made and the result Of the cleo
lon, naA aarlN- HI .