Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-18
DIRECTORS FOR TWELVE DIS.
TRlcTs TO BE APPOINTED
THIS WEEK.
STOCK SUBSCRIPTION BOOKS
TO BE OPENED soon
Appointments Will Permit District
Banks to Proceed to Organize and
Capitalize Respective lnstitutions-
War Risks and Several othsr Re-
forms Urged.

Washington. Aug. 1S.-The federal
suggested appointments representa-
the board on the directorates of the fed
eral reserve banks for the twelve re-
serve districts.
Three directors are to be named by
the board for each such bank, the board
having thirty-siN selections to make.
The task IS expected to be completed
and announcements made before the
end of the week.
; This is to be the first step in the rush
work undertaken by the board for or
ganization of the reserve banks as the
initial move by it to perfect organiZa-
ton of the new financial system. Pend
ing determination of this part of their
work the board has showed aside in
vestigation of the protests OF several
cities against the selection of reserve
cities made by the organization COM
mittee.
Stock Soon Ready.
Other directors for the reserve banks,
representing the bankers and the bust
ness men. have been selected by the
member banks in the reserve districts.
Completion OF the reserve bank di-
rectorates will enable the latter to pro-
coed with the organization and capitali-
cation of their respective bank thru
calls on member banks for subscrip-
, tons to the reserve bank stock and
| sale of stock to individuals not identi-
fed with the banks.
Approval of these stock subscrip-
.. l. ,t1 ID h. av-I
be followed by the issuance Of rules
and regulations. framed according to
the Glass Owen currency law for the
conduct of the reserve bank business,
specially with reference to rediscounts
for member banks.
The latter question is likely to grow
complicated because of the threatened
new legislation. which seeks to extend
and 'iberaiize the rediscount privilege.
especially as applied to commercial pa
per based on cotton and grain secur-
tiles.
Need Ninety Days For Work.
Chairman Carter Glass. of the house
banking and currency committee, said
yesterday he had been informed that 1t
would take about ninety days for the
federal reserve board to organize the
reserve hank system, altho it was pos
sible to have the banks themselves
organized and doing business in much
shorter time.
The reserve board expects assistance
from the reserve banks in handling the
complicated conditions due to the Euro
pean war situation. and will press for
their organization in advance of other
branches of the system which can wait.
The reserve banks will take over much
of the work of financing and handling
the cotton crop situation.
Difficult problems in connection with
the foreign exchange and the wheat
crop are receiving the attention of the
board, and its members are comforting
with committees OF business men on
the form to be given the remedial
emergency legislation proposed. These
include:
Admissin without restriction of for
eign- built ships to American registry.
War Risks Urged.
War risk insurance by the govern
ment to break down the exorbitant
premiums demanded by private insur-
ance companies. In this field the gov
eminent is expected 70 cooperate with
the private concerns.
Authority in the federal reserve board
to suspend the law restricting loans on
commercial drafts or bills of exchange
with six months maturity to one-half
of the capital and surplus of the lead
ing bank.
Anticipation of the right under the
Law, to permit the federal reserve banks
to reduce their gold reserves from 25
per cent 10 Is per cent. releasing per
cent of gold. or about s300,000.000, for
use in settlement of foreign obligations.
Secretary McAdoo. reserve board
members and the business committees
will go this week before the proper
committees of congress to press for the
legislation deemed necessary to perfect
relief plans that have been devised.
PACKERS TO TESTIFY.