The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1914-01-01

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large cities. tho law provides that thre
years may be consumed In shtftini
these balances and that, IL necessary
part OF the reserves transferred to I'M
regional nj may consist OF onm
cial
The account OF reserve required from
every bank under the new law n I'M
place where 1t must be kept are AZ 1oA'
lows:
Country banks: F1ve-tweifths mus
De kept in the banks vaults for twt
years and four-twelfths after that tune
For the first veal two-twelfths u %
kept in the regional bank, increasing
one-tweifth each six months thereafter
until 1t reaches f~ive-twelfths Of the TO-
tai reserve. For three years the mai.
lotted part of the reserves ma be kept
in tho banks OF reserve cities: after
that time It must be kept either In the
country banks vaults or In the region
al reserve bank.
Reserve city banks: Total reserve
required. Is per cent OF demand and 3
per cent OF time deposits Six-fifteenths
must be kept In the banks vaults
after that time. Three-fifteenths
must be kept in the regional ban for
the first year. increasing one-fifteenth
every six months thereafter until 1t
reaches six-fifteenths For three years
the una1loted portion of tho reserve
i1aS Oc ktpl III OInST paukS III ~ iva
vaults or in the regional bank; after
that time In one OF h latter two
places.
Central reserve city reserve banks
(New York, Chicago and ST LOUISE:
Total reserve required IS per cent of
demand and 5 per cent of time de-
posits. Sf~x-eighteenth must be kept In
the banks own vaults; seven
eighteenths in the regional reserve
banks. and the remainder five
eighteenths In either place the bank nay
choose.
from member banks' together with
government moneys will make up he
deposits of the regional reserve banks.
Each OF these banks will be admin
istered by a board of nine directors,
six Of whom will be elected by the
banks and three appointed by h fed
eral reserve board.
The regional banks may rediscount-
that Is. buy at a discount from its
banks-"prime commercial
paper" when the member banks desire
to convert these assets into money?
The exact terms of this important pro-
vision as to the character of paper upon
which the regional reserve banks may
furnish cash are as follows:
Upon the Endorsement of any OF its
member banks with a waiver or de-
mand notice and protest by such bank,
any federal tregionaD reserve bank
may discount notes, drafts and bills of
exchange arising out Of actual COM
merctal transactions; that Is notes,
drafts and bills of exchange issued or
drawn from agricultural, Industrial or
commercial purposes or the proceeds Of
which have been used or are to be used
for such purposes, the federal reserve
board to ave the right to determine
or define the character of the papers
thus eligible for discount within the
meaning of this act
Nothing In this act contained shah
be construed to prohibit such notes.
drafts and bills Of exchange, secured
by staple agricultural products. or
other goods, wares or merchandise from
being eIgible for such discount. but
such definition shall not include notes,
drafts or bills covering merely invest
ments or Issued or drawn for the pur-
pose OF carrying of trading in stocks.
bonds or other investment securities ex-
cept bonds and notes of the govern
ment OF the United States,
Notes, drafts and bills admitted to
discount under the terms OF this para
graph u have q maturity at the
time OF discount OF not more than 40
days. provided that notes. drafts and
bills drawn or issued for agricultural
purposes or based on live stock and
having a maturity not exceeding six
months, may be discounted in an
mount to be limited to q percentage
OF the capital of the federal (~regional)
reserve bank to De ascertained and
liked by the federal reserve board.
hFE#M