American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1914-11-19
P0KTUNB LRAVB0 soon ~
BANK ON THE COAST

dollars In actual cash. gold coin, vail
leave Boise Monday and during the
next few days for San Francisco. This
fortune will 60 as the deposits Of the
national banks Of this city to cousti-
tute their necessary reserve to be
placed in the Federal Reoerve bank
for this district AG
The new national banking system
goes into operation Monday and no.
tees have been received In Boise by
bankers saying that hte reserves re-
quired by the act establishing the
federal reserve banks to be deposited
in the district banks by the member
banks must be sen forward immedi-
ateiy. wa
To Insure Demands.
The amount OF each member banks
reserve to be deposited In the district
bank Is to be two-twelfths Of the ~
per cent total reserve required of
them to be carried against their de-
mand deposits. Therefore. according
to the statements issued by the Boise
banks at the last call Of the secretary
of the treasury on October 81, the
amount which must be forwarded to
tthe san francisco bank at once
amcunts to more than one hundred
thousand dollars.
The notice which the federal re-
serve board recently ent out from
Washington calling attention of the
member banks to the necessity Of
sending forward this reserve and
which was received by some Of the
Boise banks on Saturday stipulates
that the actual cash must be sent for
ward n that the funds should be
in San Francisco by the opening of
the bank. The district bank to which
Boise is tributary is located In San
Francisco and opens for business Mon
day.
Wire That Money Is Ready.
Because Of the im~possibility of ship
ping the coin to San Francisco by the
opening date, at least n Boise bank
er will wire Monday morning that the
reserve from his bank will be sent
forwith and something like twenty
thousand dollars will be shipped at
once. The other banks will also ship
at once. ..
Incident to the opening of the fed
eral reserve banks all over the coun-
try IN Monday and the putting into
operation the financial system which,
as the sponsors for it's claim, will do
SO much for relieving financial and
business depression. The Statesman
has interviewed a number of local
bankers and asked that they give
their views of the new system,
Insurance Against Pauics.
F. Fl. Parsons, cashier of the Pacific
National bank, said: 81 believe that
the greatest benefit to come from the
operation Of the federal reserve bank
ing system will be its, absolute insur-
ance for the banks of the country
against panics. Through the provi-
sions of the law organizing the sys-
tenn, there Will always be available for
legitimate business purposes. plenty
Of funds upon which to do business,
provided proper collateral is furnished
to c these funds"
Another great benefit which I be-
iieve will result is the increase facil-
ity In The business of clearing foreign
items. Under the new system Boise
will be able t clear through San
Francisco many items without cost
upon which today an exchange fee is
charged. There may be other bene-
fits to come from the system, and /
believe there will be others, but In
my judgment they are those which
only the future will show"
Cannot See His Benefit.
George w Fletcher. president of the
Idaho National bank said: Il was
reading in the Wall Street Journal
this morning that the rates of in
terest to be charged by the eastern
banks under the new system would
range from 6 to 7 per cent. This is
no better than We have been able to
get from our eastern correspondents
when we have need Of borrowing
funds. We are called upon to SEND
forward our reserve to the district
bank. This means the practical tying
up of that much money, upon which
we will receive no returns. The fed
eral reserve act says that the federal
reserve banks will be under obliga-
tions to make loans TO member banks,
but it is not made compulsory. ! can
not see where we viii receive any
great benefits from the system. In
my judgment 1t Is a measure emanat-
ing from Wall Street for the benefit
of Wall Street"
Mr.. J. w. Robinson, secretary OF
the Idaho Bankers association, said
the Idaho Bankers association said: