The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-15
SOME MORE LIGHT ON
NEW CURRENCY LAW
Reserve Board Instructs Banks
rs to stock subscriptions
by Members.

NAsHiNGToS. Feb. 1.-THE reserve
bank organization committee of the Fed
eral Reserve Board caused to be made
public at the Treasury Department to-day
a statement setting forth ia interpre-
tatior Of the duties placed on IL by the
Glass-Owen currency law
The statement calls attention to the
iact that until the locations of the re
serve banks and rcser," districts have
been designated the only requirement Of
national banks is that they signify their
acceptance o. The provisions OF the Law
within the sixty day period prescribed
The statement also quotes the provisions
OF the law relative TO the subsy ription by
nvmber banks to the stock OF the reserve
banks. The statement was in part as
follows.
1t VIII be observed that under the pro-
vision OF section al national banks are
required and all other eligible banks are
permitted to signify their acceptance OF
the provisions of this act within sixty DAYS
from its passage. Banks should not CON
iuse this notice TO the committee with the
formal application for stock 70 be :,lcd
later.
gro facilitate compliance with this pro-
vision OF tho act the committee. has for
warded TO all national banks a prescribed
form of resolution to be adopted by the
boards OF directors Of such banks and
upon request from state banks is for
wardrs Il prescribed form OF rcsolu-
ton Tor use ny such banks When cor-
titled copies a.. such resolutions haN.
been received and filed up Other action by
srplying hauhs T. Necessary until IL" !"c.t.
tons Of the several Federal reserve banks
have been established 10y TN" committee
ana the districts 10 be served by sucL
banks have been defined.
1T VIII be observed from sections .
and I that the Comptroller OF the Cur
banks which have sisninod their inten-
ton to become members OF Federal re-
serve banks a form of application 10 be
executed by such banks after the dis
tricts have been laid out and the loca-
ton OF the Federal reserve banks
definitely established by the organization
committee.
The provisions relating to member
ship by state banks are entirely optional
State banks are not required to signify
within any given time their intention to
become members, but are permitted TO
do so IL they desire To become members
AS soon as Federal reserve banks are
originally organized.
Two methods are prescribed by which
State banks may become members OF the
Federal reserve system.
First, by conversion OF state banks into
national banks, In which case the laws
applicable to national banks become I'M
mediately operative as soon as such con-
version Is completed second. state banks
may become members as State banks re-
tanning their state charters In which
case such banks are subject specifically
to the provisions OF the Federal reserve
act.
Banks becoming members as state
banks therefore may exercise these
powers conferred by their State charters
whicA are not in conflict with the specific
provisions of the Federal reserve act
state banks and trust companies sig-
nifyins their intention to become members
of the Federal reserve system before the
organization or the Federal reserve banks
will be permitted - participate in the
selection OF directors Of said reserve banks
as prescribed by the Federal reserve
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