The Washington herald., 1914-04-04
STUDY
RESERVE Plan
Workings Of Federal Fiscal
Scheme Watched with
Interest.
FIRST PAYMENT, $l5s,46O
Some Disappointment Expressed that
Washington Was Not Chosen-Mc- :
Kee Defends Original Argument.
FIRST PAYMENT, $l5S,460
BY w. sTEALEY.

While considerable disappointment was
| expressed by local financiers yesterday
lover the selections OF the Federal Re-
serve Bank Organization Committee.
there was little disposition to criucise.
1 1t was felt generally that the problem
before the committee was too big to
admit of any disposition to play politics,
and that the committee reached the con-
lclusions 1t deemed best to carry the new
act into operation. In any event. the
superiority of the new law over the ex-
listing statutes Is so vast that the dis-
| tricts were felt TO be a matter OF COM
paratively minor Importance. II the Sc
lections of the committee are found to
be radically wrong. the Federal Reserve
Board has the right to change them.
That IL will not hesitate to do SO goes
without saying. The new system Is
necessarily experimental. but there Is
the certainty that II cannot be worse
than the old law.
| Local bankers were inclined to follow
the view expressed by II. II. Mckee, OF
the Capital National Bank, who was the
principal advocate Of Washington's 8
claims as a reserve center.
! Inferested in Methods.
Mr.. Mckee said:
"The location for a Federal reserve
bank in Richmond has not changed my
belief that Washington Is the logical
place for a bank to serve Federal Re-
serve District No 5. All the arguments
advanced in behalf of Richmond apply
with equal force to Washington, to which
must be added the other and broader
consideration that Washington is the
capital of the nation. the center Of ma
tional interest, and free from sectional
! pride and strife But the decision of the
4 reserve bank organization committee Will
tbe accepted gracefully by all bankers
who realize the tremendous task which
confronted the committee. and am sure
the washington bankers will cooperate
heartily with other bankers in an enort
| to make the system success
Bankers here, having accepted the find
| inys of the committee. yesterday were
| more interested in the transfer OF money
| from member banks in payment OF their
subscription to reserve banks. II Is be-
| lieved this will be accomplished with
out difficulty.
Under the terms of the Federal re-
serve act, each bank is required after
thirty days notice from the committee
| to subscribe TO the capital stock OF the
Federal reserve bank per cent of the
paid up capital and surplus. One-sixth
OF this subscription must be paid on call.
one-sixth within three months and one
sixth within three months thereafter. The
remainder comes when deemed necessary
by the Federal Reserve Board. This sub
scription must be in gold or gold GER
| tificates.
First Payment SI5S,46O.
! The fifth district. with its $l05,064 4sS
capital and surplus, must subscribe s
per cent. or $500. SIS Correspondingly
the banks which enter the reserve sys-
tenn in the District of Columbia will
have a capital and surplus Of S5.s46.Oo.
of which amount s per cent, or $3.50, $50.
must be subscribed to the Richmond
bank, the first payment. one-sixth, Sl5s,-
49, on call, and similar amounts as
above stated.
The subjoined table shows the COM
bined capital and surplus of the banks
in the District of Columbia which enter
the reserve system. the per cent sub
scription and the one-siXth subscription
~ roII