Western Carolina Democrat and French Broad hustler. [volume] (Hendersonville, N.C.) 1913-1915, 1914-01-08

Five-twelfths must be kept in the
banks vaults for a period of two
years, and four-twelfths after that
thine. For the first year two-twelfths
must be kept in the regional bank, in
creasing one-twelfth each ak months
thereafter until it reaches Ave tweIfths
of the total reserve. For three years
bound to court in the sum of 5000 on
a charge Of Illicit distilling. The re-
the unallottee part OF the reserves
may be kept in the banks or reserve
cities; after that time it must be kept
/ either in the country banks vaults or
in the regional reserve banks.
Reserve City Banks: Total reser ge
required, Is per cent. of demand and
5 per cent, of time deposits. Six-ff-
teenths must be kept in the banks
! vaults for the first two years, and
FIVE ffteenths after that time. Three
fifteenths must be kept i nthe refio-
nal bank for the first year, increas-
ing one-fifteenth every six months
thereafter until it reaches six-ff-
teenths. For three years the una!-
lotted portion of the reserve may be
kept in other banks, in it's own vaults
or in the regional bank; after that
time it must be kept in it's own bank
vault or in the regional bank.
Reserve city banks: Total reserve
required Is per cent. of demand and 5
per cent. of time deposits. Six-eigh
teenths must be kept in. the banks.
own vaults; seven-eighteenths in the
regional reserye bank and the remain
ing fve-eighteenths in either place the
bank may desire. (
Central reserve city banks (theae 10
be located in New York, Chicago and
ST. Louis): Total reserve required 1e
per cent. of demand and 5 per cent.
of time deposits. Six-eighteenths must
be kept in the banks own vaults;
three-eighteenths in the regional g
serve banks for the f5st Elk months,
and six-eighteenths. may be kept in
the banks own vaults, or In the regio-
nal reserve bank.
These funds of reserves OF member.
banks, together with government
moneys make up the deposits of the
regional reserve banks. The affairs
of each of these banks will be on.
Quoted under the supervision Of q
board of nine directors. six of whom
win be elected by the banks. ami
three appointed by the feleral reserve
board.
The law makes n important change
in the national banking methods as
they have existed heretofore. The
new system permits all national
banks, except those in New York,
Chicago and st. Louis, to make direct
loans on five-year mortgages, up 40
Is per cent. of their capital and sur
plus, OF up to one-third of theri time
deposits.
The law requires little direct
change in he operation of the present
national banks. The burden of the
rev law is to get the reserve funds
heretofore required to be kept by ma
tional banks, into circulation when
necessary, without ~lessening the safe
ty of any bank, and to provide a
place to which local national banks
may go in the time of g money strin-
gency, and get cash for their first
class commercial paper.
A new form of paper currency is
also provided, to be issued in cases
of emergency, and which is expected
to find it's way back into the hands
of the government when times arc
normal. This new form of currency
the law provides, shall be printed by
the government, and isued through
each regional reserve bank, and will
bear the guarantee of both the gov
erRment and regional bank.