The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1914-01-09

The amount OF reserve required
from every bank under the new law,
and the place where it must be kept,
are as follows:
Country banks-Total reserve reQuir-
ed, u per cent. of demand deposits
and 5 per cent. Of time deposits. Five
twelfths must be held in the banks
own vaults for two years and four
twelfths after tnat For the first year
two-twelfths must be kept in the re-
gional bank, increasing One-twelfth
each six months thereafter until it
reaches fye-twelfths of the total re-
serve. For three years the unallotted
part Of the reserve may be kept IN
the banks Of reserve cities. After
that .ime it must be kept either in
the country banks and vaults or in the
regional reserve bank.
Reserve city banks-Total reserve
required, 10 per cent Of demand and
5 per cent. of time deposits. SiX-flt-
teenths must be kept in the bank S
vaults for the first two years and I'VE
ffteenths after that time. Utrecht
teenths must be kept in The regional
reserve bank for the first year, IN
creasing one-fifteenth every SIX
months thereafter until it reaches SIX
fffteenths. For three years the I'M
allotted portion OF the reserve may be
kept in other banks. in its own
vaults, or in the regional bank; after
that time in one Of the latter two
places.
Central reserve city banks New
York Chicago and st. Louis)-Total
reserve required, IS per cent. of de-
mand and per cent. of time depos'
its. Seven-eighteenths in the regional
reserve banks and the remaining five
eighteenths in either place the bank
may choose.
Regional Reserve Banks.
These immense funds Of reserves
from member banks together with
government moneys, will make up tbs
deposits of the regional reserve banks
Each of these banks will be admins
tered by board of nine directors, six
Of whom will be elected by the hanks
and three appointed by the federal re
serve board.
The regional reserve banks may re
| district-that is, buy at discount
from its member banks-"prime com
mercial paper" when the member
banks desire to convert these asset:
into money.
Character of Paper.
The exact terms of this importan
| provision as to the character of papel
upon which the regional reserve bank:
may furnish cash are as foll0@s:
Upon the Endorsement of any of 1t!
member banks, with a waiver of de
mand notice and protest by sucl
banks, and federal (regional) reserve
bank may discount notes, drafts, ant
bills of exchange arising out of act
ual commercial transactions; that is
notes, drafts, and bills of exchange is
sued or drawn Ior agricultural, indus
trial or commercial purposes, or thu
proceeds of which have been used, O
are to be used, for such purposes, tn
federal reserve board to have tn
right to determine or define the char
acter of the paper thus eligible TO
discount, within the meaning Of thi
act.
Eligible for Discount.
Nothing in this act contained shall
be construed to prohibit such notes
drafts and bills of exchange, secure
by staple agricultural products, or 9th
| er goods, wares, or merchandise, iron
being eligible for such discount; bu
such definition shall not include notes
drafts, or bills covering merely invest
ments or issued or drawn for tn
purpose of carrying or trading i