Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-29
LOCAL BANKS To ACT
ON COTTON ASSESSMENT
Believe That. 100000 Is Too
Heavy Contribution and It
May Be Scaled.
November Disbursements Locally
Total Over $500, O00-Reserves
to Be Released November 16.
BY I. A. FLEMING,

1t is possible. perhaps probable. that
Washington banks will contribute the
greater part of their allotment to the
cotton pool. but it is certain that there
will be objection thereto by many of
the bankers and no such unanimity as
there was when the allotment to the
gold pool was under consideration.
In the latter case the need, as stated
by some local bankers, was national.
but this cotton pool is for the relief
OF section of the nation"
Another banker said: when corn
was being burned in some of the west
ern states, when wheat was down to
SO cents a bushel. there was no dis
position on the part of the government
to help the section involved. The
farmers took their losses and in many
cases burned their corn. But there is
a market for cotton at cents a pound;
let southern interests sell what cotton
they have to and store the rest"
Yet another declared that I'VE are
DONG about all we can to help the
south and its cotton problem to-
day. But We also have a problem
right here in the plaza injustice that is
and has been worrying Washi gton
people and that in its settlement
the not distant future-will release
much money tied up in loans to the
owners of this property. The delay In
settlement has been a serious incon-
venience
Washington is not cotton center in
the sense that its bankers are large
carriers OF cotton as collateral for
loans, although there are few banks
that have made loans in cotton states.
But local banks have materially as
sisted in carrying cattle and apples in
nearby states
The local clearing house association
Will meet Friday afternoon for consid-
Grafton of the requests of the managers
of the cotton pool for a million ollar
contribution.
Preparing for New System.
In practically two weeks national
banks and other institutions becoming
member banks of the federal re-
serve system will be called upon to
make their contributions to capital
and reserve requirements for the new
currency system. Washington bank
ers will have no trouble getting the
gold. In (which both classes of payments
must be made, but it will draw on their
resources, although compensation comes
In lessened reserves, which they will
pc permitted to put into channels of
trade and commerce.
Many banks in smaller cities are call
Ing on their correspondents here fnr
gold or gold certificates, and more calls
will be received as the time for the
opening of the federal reserve system
approaches.
Reserves Released.
The actual amount of reserves car
rfed by national banks under the ma
tional banking act is $1,46O,711,345,
based on deposits September II, last
reporting date; under the new law the
reserves. based on deposits September
II, will be s995.792,26Y, thus releasing
from holdings as reserves of $464,9Iy,-
076.
Central reserve cities New York.
Chicago and st. Louis-hoId $8S,315,9is,
$z4,f56,022 and 1874, S94, respectively.
other reserve cities reiease $Zu2,S.y,.
POO. while county banks Will have
l41,145,5S7 to divert fl ON reserve to
available TOR demands OF business
November Disbursements.
Disbursements payable in Washington
for which checks will be sent out Sat-
urday evening tuness some minor COM
pany in the list has quietly passed the
usual action) will total Y5lo,04s, esti-
mating the distribution on account or
government bond interest and OF Grapno-
phone dividends.
Washington Gas Company will nay
S156,OOO dividends and ,oe,437 account
OF interest on bonds; Washington Vir-
ginia railway will pay SZO,674 common
and 10000 preferred Dividend; Airing
ton Fire 1nsu4 ance, $4,000, ana tiremen s
1880. Graphophone estimated distribu-
ton is S-u,UUO. National Savings and
Trust and the Washington Trust com
pahles Will each send $4,000 to their
subscribers