New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-13
RESERVE BANK
TO OPEN MONDAY
Instructions Sent to Mem
Der Banks Covering
Transfers of Money.
REPORT PLEASES
WALL STREET
RediscOunt of Single Name
Paper Approved-Charleston
and Birmingham Reserves.

Member banks of the Federal Re-
serve Bank Of New York are being Of
hclally notified in letter signed by
Governor Strong, which was sent out
last evening, that the central institu-
ton Will be prepared to receive re-
serves on Monday next, the official
opening day of the new banking sys-
TEN. The reserves which the act re-
quires to be maintained are calculated
on the banks deposits, in conformity
with the method prescribed by the Con-
troller Of the Currency.
Form letters were sent respectively
to the banks of New York City, Brook
Ign and Albany and the country banks,
instructing them as to the method of
transfer of their reserves. In the first
two districts 1t was understood the re-
serves Will be delivered by messenger,
and elsewhere by express. The inten-
ton of the reserve bank is TO count
the amount of each deposit four times
where messengers are sent, and to give
each receipt for the deposit before
leaving. This work will be started
Monday by a force of between forty
five and fifty men.
That part of the reserves of member
banks which is to be kept in the New
York Reserve Bank for the first Pc
rlod, according to the classification Of
cities as defined by law is as follows:
Banks in Central Reserve City of New
York, 7-18ths; banks in reserve cities,
3-l5ths; banks elsewhere in District
No. 2, 2-l2ths.
These fractions, Governor Strong's
letter points out, indicate only the
minimum amount of reserve which is
to be kept on deposit in the New York
bank.
The letter further states that the
large banks of this city have signified
their intention of transferring their re-
serves in gold coin or gold certificates
of large denomination from their own
vaults, and this method is urged upon
all the member banks. The banks ship
ping gold coin are directed TO ship 1t
to the SubTreasury. Banks depositing
currency are requested 10 send only
packages containing multiples of ST.
600. Governor StrJng's letter con-
tinues:
'ln accordance with the provisions OF
Section 10 of the act member banks are
notified that this bank will receive from
them eligible paper (as described in
Section l4), to an amount TO be later
determined. Member banks desiring 10
rediscount paper as part of their re-
serve deposits are asked to indicate the
probable amounts desired, when trans
hitting their cash deposits. A circular
on the subject announcing the rate OF
discount established, and the nature of
the Endorsements required, together
with form of application blank, will
soon be issued"
The feeling in Wall Street yesterday
was that the Federal Reserve Board
had acted wisely in delaying a final
ruling as to what shall constitute COM
mercial paper for rediscount purposes
at the regional banks until financial
conditions have approached a state
more akin to normal. The report was
particularly commended for its liberal
construction of the reserve act in ad-
hitting single name paper TO the priv
ilege of rediscount.
Washington, Nov. 12-Rates to be
charged by the twelve Federal Reserve
banks in the rediscounting Of CONNER
cial paper offered by member banks
probably will be announced tomorrow
by the Federal Reserve Board. The
rate will not be uniform, but how
much it will vary was not disclosed
tonight.
The Reserve Board tonight an
nounced the designation Of Charleston,
s. c., and Birmingham, Ala, as reserve
cities, and at the same time declared II
to be the future policy TO name no
more reserve cities under 100000 pop
ulatiOn.