The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-02
RESERVE BANKS
ON BROADER BASIS
Those at Chicago and Kansas
City Permitted to Assume
Clearance Function.
NEARLY ALL RESERVES IN

WAsuiNGroy. Dec 1.-The Federal Re-
serve Board decided to-day to permit the
Federal reserve banks at Chicago and
Kansas CITY. Mo. 10 assume the clearance
functions provided for by the Federal
reserve act
This action marks an important step
toward the assumption by the reserve
banks OF ;he full powers conferred upon
them by tho new law. nut the exercise OF
which was withheld ~ the opening OF IN"
reserve system in November.
The boards decision resulted from con-
fdence that the twelve hanks are APP
preaching n mastery Of the machinery
Of the new system and that the existing
financial conditions are auspictous Tor the
extension Of the reserve banks operations.
II was pointed out that the payments
81 reserves il complete. except possibly
FOR the few thousands which may ne Que
from smaller hanks. The announcement
from tho Comptroller OF the Currency
to-day that the clearing house dssociatlons
throughout the country had either paid on
or called for redemption and clearing
house certificates has mn important oear-
ing on the decision OF the board.
The board approved changes IN the
rediscount rates for two reserve banks
II permitted til reduction OF the fate
on thirty day maturties from TO . "a
Nat rate OF { per cent. on all maturitIes
for the Kansas city district.
The Federal Reserve Board has an
rounced the following advisory council
authorized under the Federal reserve act
Daniel c. Wing. Boston j. T. MORGAN
New York; Levi T. Rue. PhiIaneIphlI :
W. :. Rowe cleveland George W. Seay'
Richmond. Charles \. Lycrly. Atlanta
7 H. Fnrgan, Chicago: G. T. Jonrey'
Minneapolis T.. T.. swimmer. Kansas CITY
J Howard Audrey. Dallas.
The Comptroller of the Currency issued
this statement in announcing the results
Of injuries regarding clearing house GER
tihcates
THE Comptroller Of the Currency an
nouuced to-day that Geographic adt!c"s
received from the clearing house assocla-
lions throughout the country show thar
all clearing house loan certificates have
either been paid of or called for redemp-
ton,
chicago wires tina; the banks there
are ready 10 pay on the comparatively
small balance sull outstanding and are
only delayed by the required notice OF
redemption. which prevents the last OF
them from being paid for few days
longer.
The Baltimore banks have given no.
tice for redemption of the last OF their
loan certificates not later than the 18th
instant. New York. Boston, Philadelphia.
st Louis New Orleans and all other cities
throughout the country which issued any
clearing house certificates report all now
paid in full.
This encouraging fact Is an acknowl-
edgment and important evidence OF the
almost complete return 20 normal or the
conditions In this country and marks our
safe exit from the disduieting conditions
which so recently confronted US.
The total amount of additional cur
rency issued under The provisions Of the
Aldrich-Nrceland act 80 date Is s3>l.-
10000, and OF this amount Sle1272,0Oo
or more than one-third, has already beer
redeemed. Very few rev applications ar,
being received. while redemptions AZ,
large and steadily increasing