The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12
CLEARING HOUSE GETS
RESERVE AMENDMENTS
Reductions by Banks Here Like
ly After Vote at Special Meet
ing Tomorrow.

meeting Of the Clearing House Asso-
citation was held Yesterday at which the
amendments reducing the reserves OF the
member banks In accordance with the
new Federal and state laws were pre-
scented. There was no discussion. The
amendments will be voted upon tomorrow
at special meeting. They were drawn
by committee consisting of y. Barton
Hepburn. Frank \. Nanderlip. Walter f.
Frew and Benjamin Strong, Jr.. and APP
proved by the Clearing House committee.
The amendments have the approval or
the big banks and it is thought they VIII
be adopted at to-mOrrow's meeting.
The release Of reserves made possible
by the adoption Of these amendments Is
estimated to amount to about $ls5 900 600,
including thos" trust companies which are
not members of the Clearing House. The
amendments t. the constitution OF the
Clearing House Association proposed In
leu Of section O. the repeal OF which Is
recommends. are ms follows
"All members ot this association hold
INK charters under the national bank
act shall keep and maintain a reserve
u not less than Is per cent. OF their de-
maud deposits and ; per cent. OF their
time deposits in such proportions and in
such depOsitaries as may be required by
the Federal reserve act.
IAN bank members Of this association
holding charters under the laws OF the
state OF New York shall keep and main
tain reserve of not less than is per cent.
OF their aggregate demand deposits In
such proportions and in such deposltaries
"a may be required by the laws OF this
state.
"Ar trust company members of this
association, holding charters under the
laws Of the State of New York. shall
keep and maintain a reserve OF not less
than Is per cent. OF their aggregate de-
mand deposits in such proportions and in
such depostaries "a may be required by
the laws Of this STATE.
PROVIDED, however. that in determin-
ing aggregate demand deposits no deduc-
ton he made " deposits secured by the
deposit OF outstanding unmatured stocks,
bonds or other OBLIGATIONS OF the State
or city OF New York, or Of deposits to
the amount OF the stocks, bonds. or other
obligations OF the state or city OF New
York owned and held by the bank or trust
company.
And provided. that all institutions
holding charters under the laws OF the
state ~ New York members OF the New
York Clearing House. who are now or
may hereafter be admitted as stockhold-
ers an: members OF the Federal reserve
bank OF this district, shall keep and
maintain a reserve Of not less than Is per
cent. Ot thelr demand deposits ana D per
cent, OF their time deposits in such pro-
portions and in such deposltaries as may
5e required by the Federal reserve act.
"And, provided, that all reserve other
than cash on hand. must be maintained
In the Federal Reserve Bank OF New
York. or some member bank Of the Fed
eral Reserve Bank OF New York. or any
other member OF this association which
maintains the fun Is per cent. reserve In
cash.
Amend Section 7, Article IN, to read
as follows:
" Section :. Every institution redeem.
ing through member of this association
shall keep the same cash and deposit re-
serve against its demand deposits and
time deposits Gas reported weekly. which
the rules OF this association prescribe for
Clearing House members. excepting that
any such institution which Is a member
of any other Federal Reserve Bank than
that OF New York, may count all reserve
allowed by law to be carried in it's own
Federal Reserve Bank. The Clearing
House Committee shall have power 10 en-
force this rule"