The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1914-01-02

The amount OF reserve required
from every baHl under the new law.
and the place wLere Il must be kept.
are as follows:
Country banks. Total reserve requir
and . per cent. " time deposits. Five
tweifths must lie held In the banks
Own vaults for two years and four.
| twelt;hs after that. For the first year
two'twelfths must be kept in the re-
glonal bank increasing one.twelfth
each six months thereafter until 1t
reaches five-twelfths OF the total re.
serve. For three years the unallotted
part Of the reserve may be kept In
the banks OF reserve cities. After
that lime II must be kept either in
the country banks and vaults or in the
regional reserve bank.
Reserve city banks--Total reserve
required. Is per cent of demand and
per cent of time deposits. Six.iif-
teenths must be kept In the banks
iiteenths after that tine. Three.if.
teenths must be kept In the regional
reserve bank for the first year. in.
creasing one-ffteenth every six
months thereafter until II reaches six.
iifteenths. For three years the un.
allotted portion Of the reserve may be
kept in other banks. in its own
vaults, or IN the regional bank; after
that time In one of the latter two
places
Central reserve city banks (Ncw
York, Chicago and St Louis Total
reserve required. Is per cent. of de-
mand and b per cent. Of time depos
its. Sevon-eighteenths In the regional
reserve banks and the remaining five
eighteenths in either place the bank
may choose.
Regional Reserve Banks.
These immense funds of reserves
from member banks" together with
government moneys viii make up the
deposits OF the regional reserve banks.
Each Of these banks will be admins.
tered by board OF nine directors, six
of whom will be elected by the banks,
and three appointed by the federal re.
serve board.
The regional reserve banks may re.
district-that is, buy at a discount
from Its member banks-"prime com.
mercial paper" when the member
banks desire to convert these assets
into money.
Character Of Paper.
The exact terms OF this important
provision as TO the character OF paper
upon which the regional reserve banks
may furnish cash are as follows:
Upon the Endorsement OF any OF Its
member banks, with a waiver OF de.
mand notice and protest by such
banks, and federal (regiona) reserve
bank may discount notes, drafts, and |
bills OF exchange arising out of act.
ual commercial transactions: that is, |
notes, drafts, and bills OF exchange IL. |
sued or drawn for agricultural, indus. |
trial or commercial purposes. or the
proceeds OF which have been used. or |
are to be used, for such purposes, the |
federal reserve board to have the |
right 10 determine or define the char
acter OF the paper thus eligible for
discount, within the meaning OF this
act.
Eligible for Discount.
Nothing In this act contained shall
be construed to prohibit such notes,
drafts and bills OF exchange, secured
by staple agricultural products, or 9th.
CT goods, wares. or merchandise. from
being eligible for such discount; but
such definition shall not include notes,
drafts, or bills covering merely invest.
ments or issued or drawn for the
purpose of carrying or trading in
stocks, bonds or other investment Sc.
curities, except bonds and notes of the
government of the United States.
Notes, drafts and bills admitted 10
discount under the terms OF the para.
graph must have maturity at the
line OF discount OF not moro ;han 90