Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1914-04-08
FEDERAL RESERVE BANKS.
With a Total Authorized Capital of
$1OO,OOO,OOO Federal Reserve
Banking System Will start
Business.

Washington, April 6.-The new
federal reserve banking system will
start business with a total author
lied capital of S100,00O,000 for all
reserve banks, no matter how many
institutions the organization commit
tee decides to set up. This fact be-
came apparent when figures were
made public from all national banks
responding to the last call of the
comptroller of the currency, made
March 4.
The statement issued giving these
figures will be the last of the kind
before the formal launching of the
system, unless the organization
changes its present purpose and de-
lays the announcement of the re-
serve districts and cities. The total
capital and surplus of the 7,494 ma
tional banks reporting, was given at
about 81 $4,000, 900. Under the re-
serve act each national bank must
subscribe 6 per cent of its capital
and surplus to the capital of the re-
serve bank in its district and per
cent. Of this total would be about
S107, 100000.
There were only 7,464 national
banks who signifed, in the legal
time, their intention TO enter the sys-
tenn, so that the total would be some
what reduced, but the entrance into
the system, of state banks and trust
companies will tend to Offset this,
and it is possible that with these in
situations, figures in the capital of all
reserve banks will be near $110, 000,-
600.
The actual working capital of the
reserve banks may only reach half
this amount, for the law provides
mandatory subscription of only
three-siXths of the total per cent.
The reserve board, the machine
which will direct the system, howev-
err, is authorized to demand the pay
ment of the other three-siXths.
The statement today shows nation
al banks in excellent condition to
meet the demands of the new law
Some observers were surprised by
the fact that loans and discounts
have increased instead of being cur
tailed Loans and discounts on
March 4, 1914, amounted to $6,357,-
535, 1913. a gain over January 13,
1914, the time Of the last call, of
$1S2. 130,936.
Subscribing banks must begin pay
ments for their reserve bank stock,
thirty days after the announcement
CT the districts and reserve cities and
it was believed in some quarters that
today's statement might show a de-
crease in loans and discounts because
of this impending announcement. The
loan and discount increase, taken
together with the fact that individual
deposits increased in the same per-
iod by more than 100000, was
said to be the best indication that
the national banks are in shape to
According to the statement, the
resources and liabilities of the ma
tional banks were $11. 564. 497, $50;
their capital stock, $1,056, 1872, 100
and their individual deposits, $6.111,-
32S,457. Their reserves were put ut
81 SAT, 592,375, an average of 20.62l
per cent. and S47.529,429 above the
required by law. The cash
in banks decreased since January,
1914, about 100000 but increas-
ed over April 1913 about $4,000
900.
During March ten new banks were
authorized to begin business and
since the currency act was signed,
there have been 1874 applications for
conversion into national banks or for
entrance into the new system as
state institutions.