The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-11-17

banks will probably be received within
the week.
The first @actual rediscounting of
paper for the member banks Is likely
10 be done today. The next few days
will be very busy ones for the local
reserve bank organization but as soon
as f1e machinery of the new institu-
ton gets the rough edges worked off
and begins running smoothly. their
. duties viii appear less arduous. From
time to time as the demands become
greater upon the Fifth District Bank.
employees Will be added to the staff,
and an adequate number of expe-
rienced bankers will be at all times
in the service of the 4s6 member
banks of the district to meet their
needs.
Shortly after the opening yester-
day the addition of one member to t,ae
staff was announced. The new mem
Der is George III. keesee, who becomes
an assistant cashier in the Reserve
Bank. Mr.. keesee has for a number
! OF years been associated with the
Merchants National Bank, serving
that institution as assistant cashier.
Five other. members Of the staff were
announced recently.
First IN the Field.
Richmond was first in fling its brief
and claim for rne location OF one of
, the twelve reserve banks. 1t was the
( first to call conference of member
! banks in the district to name C.ass
a, representing banks, and Glass b.
representing business other than
banks. directors: the rrst in perfecv-
ing organization and the first to ses
its notice OF actual opening for BUSH
ness to Secretary McAdoo.
Richmond is the center Of the ffYg-
trict. comprising the States of Mary
land District of Columbia. Virginia,
North Carolina and South Carolina
and all OF West Virginia except the
panhandle section. The area of the
district is 1888 square miles and
its population is s.5Is.si3. 1t has
496 member banks, with capital stock
and surplus of sI05.os4, Asa. In the
amount of capital stock subscribed It
stands seventh among the twelve
banks being ahead OF st. Louis. Kan
sas City Minneapolis, Atlanta and
Dallas.
There are in the trnited States T.
5Tl National Banks. all OF whom are
required to be members of the sys-
! tenn There are some 1900 other
banking institutions in the country
which by meeting the requirements of
tne law, may become members of the
system.
/ Benefit Farmer and Merchant.
/ The operation Of the new law will
ultimately do away with approx
mately $4,000 separate and distinct
! reserve funds, held by as many banks
I the country over Hereafter a bank
will be required TO keep on hand in
/ cash only such reasonable amount as
/ shall permit II to care with COM
! fort for It's daily turnover. In con-
! sequence money heretofore held in
! large measure IN wastefuI idleness
may with entire safety he released
To active business. The result must
! prove helpful TO merchants, particu-
ularly so II they in contributing their
share TO the general situation will
gradually require their debtors to give
/ them negotiable paper. rather than
debit them in open accounts.
I The farmer will receive his snare of
benefit first in the enlarged ability Of
7 his bank to care for him, provided his
/ bank is a member of the Reserve
. System and second in the gradual
4 lowering of interest rates from a f1g-
ure which many times in the rural
SECTIONS lis ahsurdly high i'm con-
nection with loans which a bank
having regard for its own safety
would be permitted to accept.
Relations Not to He Disturbed.
Under the new law the present re-
latAonS 10 MS Dank OF a business cor
poration, Arm, or individual will not
be disturbed in the slightest degree
ON the contrary. after the lapse Of
three years 1t will likely be found
mat banks deposits with other banks
will have been withdrawn for rede-
post with the several Federal Reserve
Banks
The profit on bank deposits as now
held is insig nificant. The loss should
be very much more than Offset by the
profit to accrue to member banks in
their use of facilities to be enjoyed,
which are now denied them, and In a
material saving in expense account as