The Washington times., 1914-04-03

CONTINUED from First Page)
district, which has caused protest from
hat section. Its associations and bust
a.ss lines all run eastward, and it would
uIefer, If a bank cannot be placed at
pittsburgh. to be associated with an
:astern institution.
Effect On State Banks.
one of the instant discussions. follow
,uC the announcement of the location
II the reserve cities, was as to the
effect of this plan on the State banks
and trust companies. They have tho
privilege of coming into the new SYSTEM
II they wish. Will they so desire?
Some fears are expressed tosay lest
these institutions in some localities will
prefer to remain outside, rather than
be associated with the system as laid
out For example, ii was pointed out
tfat State banks Of Pittsburgh would
be indisposed to make themselves part
Of the system that would establish them
as tributary to Cleveland; and institu-
tons in New Orleans are expected to
he chary about making themselves
subordinate to an Atlanta regional in
Stitution.
These various difficulties will probably
"e threshed out at length before the
state institutions decide their course. 1t
stitutions into the new system, so as to
make II as strong and all-embracing as
POSSIBLE. 1t is expected that the cities
which have been picked as reserve CEN
ieTs will set at work Immediately. in
very possible way, to influence banks
n their territory to come in; and IT viii
Got be long before the effects of this
"fort will become apparent.
The Next Move.
The next move, It is expected, in or
-anizing the system. will be the is
suance of the regulations governing
Jhe admission Of State institutions to
he new system. Recently it was stated
hat information. would shortly be is
sued. concerning the reorganization of
heir affairs. and the adjustment of
heir investments, that would be eX-
pected of state institutions coming into
the Federal syestem.
This announcement has caused some
Sisgivings to State bankers. They fear
hat there is to be interference with
some of their privileges IN dealing in
real estate mortgage securities, and the
ike. Such interference would strongly
.Dcltne many of them against coming
1nder the new law.
They would prefer 20 remain outside,
~eCure such indirect benefits as pos
iole from the new system. and retain
heir independence in the detail of their
BUSINESS methods.
Announcement Of the membership
the Federal Reserve Board-the real
rnard OF governors of the United
states Bank is what this body will
amount to-will be made in a few
weeks by the President The Secretary
"t the Treasury and the Comptroller
"f the currency are exofficio members;
I'VE others are to be named, no two
rom any regional district.
The folowilng the certifcation today
by the organization committee with the
comptroller of the Currency of the
twelve regional hank districts, the
banks have sixty days in which to quail
ify. The Comptroller of the Currency
Immediately will notify all Of the ma
SionaI and State banks of the cities Sc
lerted. The banks desiring participation
under the Federal reserve organizations
must deposit per cent of their capital
with the Comptroller
As soon as any district has subscribed
the minimum amount, s. 001oo0. i've
Hanks IN the district will be designated
@" organize the reserve bank.
Each regional bank will have nine di-
rectors, three to be named by the Fed
raj reserve board and six to be chosen
~ the participating banks. The COM
pHnsation OF the directors will DC de-
'ided later by the Federal reserve
hoerd- After the first year the directors
viii serve for periods of three years.
The Cities Selected.
The cities selected are Boston, New
N'rk, Philadelphia, Cleveland, Richmond,
Ntianta, Chicago, St Louis, Minneapolis,
Kansas City. Dallas, and San Francisco.
In the several districts will be in
'Iuded a total Of 7,54S banks and the
apitsl and surplus represented will ap-
roNiInate 1881 ,648,369.
Washington is located in district No
which embraces the District OF CO.
umbia. Maryland. Virginia, North
'arolina, South Carolina, and all of
West Virginia. with the exception OF
the counties of Marshall, Ohio, Brooke
and Hancock.
The district contains 475 national
nanks which have accepted the pro-
.sions Of the Federal reserve act. Tho
rapital stock OF the reserve bank at
richmond. on the basis of per cent
- the total capital stock and surplus
Z the asserting banks-the proportion
u contribution stipulated in the act
win amount to $500. SOS. If there be
deed per cent Of the capital stock
md surplus Of the State banks and
rust companies which have applied FOR
mem bership. the total capital stock will
- 81 j43, 81
This dictrict embraces 1883 square